McKesson Corporation (MCK)

Health Care · $123B market cap · SEC CIK 0000927653

Next reports on Feb 2, 2027, with analysts expecting $10.98 in earnings per share.

52-week range $723.68 to $1,122. 3% below its 52-week high and 50% above its low.

The case for MCK

• Revenue growing 8.2% year over year.
• Has compounded revenue at 11.1% a year over five years.
• Moves less than the market (beta 0.26).
• Within 3% of its 52-week high: the trend is up.
• Price/sales of 0.3× is lower than 91% of Health Care companies.

The case against

• Net margin of 1.1% leaves very little room for error.
• Owes more than it owns: shareholder equity is −$2.2B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
• Current liabilities exceed current assets (ratio 0.90).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from McKesson Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What McKesson Corporation says it does

INDEX TO BUSINESS Section Page General 3 Business Segments 4 North American Pharmaceutical 4 Oncology & Multispecialty 7 Prescription Technology Solutions 8 Medical-Surgical Solutions 8 Investments, Restructuring, Business Combinations, and Divestitures 8 Competition 8 Patents, Trademarks, Copyrights, and Licenses 9 Human Capital 9 Government Regulation 10 Other Information about the Business 13 Forward-Looking Statements 14 General McKesson Corporation together with its subsidiaries (collectively, the “Company,” “McKesson,” “we,” “our,” or “us” and other similar pronouns), which traces its business roots to 1833, is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. Our teams partner with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable. The…

Risk factors MCK lists in its 10-K

• We experience costly and disruptive legal disputes
• We experience losses not covered by insurance or indemnification
• We experience costly legal disputes, government actions, and adverse publicity regarding our role in distributing controlled substances such as opioids
• We are subject to extensive, complex, challenging, and frequently changing healthcare, environmental, and other laws, and may experience increased costs to distribute controlled substances such as opioids
• We are subject to extensive and frequently changing laws relating to healthcare fraud, waste, and abuse
• We might lose our ability to purchase, store, or distribute pharmaceuticals, including controlled substances, and medical products
• Privacy, cybersecurity, data protection, and AI laws and guidance increase our compliance burden and expose us to risks
• Anti-bribery and anti-corruption laws increase our compliance burden and expose us to risks
• We might record significant charges from impairment to goodwill, intangibles, and other long-lived assets
• We experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches
• We experience significant problems with information systems or networks
• Our technology products or services might not conform to specifications or perform as we intend
• The adoption and use of AI in our business operations exposes us to risks and uncertainties
• Pharmaceutical and medical products that we distribute might not conform to specifications or perform as intended
• We might not realize expected benefits from business process initiatives
• We might be unable to successfully complete or integrate acquisitions or other strategic transactions, and our investments in businesses may not perform as we expect
• From time to time we are adversely impacted by delays or other difficulties with divestitures
• We might not realize the expected tax treatment from our split-off of Change Healthcare
• We might be adversely impacted by outsourcing or similar third-party relationships
• We may be unsuccessful in achieving our strategic growth objectives
• We are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies
• Our contracts with governmental entities involve future funding and compliance risks
• We might be harmed by changes in our relationships or contracts with suppliers
• We might infringe intellectual property rights or our intellectual property protections might be inadequate
• Our use of third-party data is subject to risks and limitations that could impede the growth of our data services business
• We might be unable to successfully recruit and retain qualified employees
• We might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models
• We are adversely impacted by competition and industry consolidation
• From time to time we have difficulties in sourcing or selling products due to a variety of causes and are adversely impacted by disruptions or changes in product supply
• We are adversely impacted as a result of our distribution of generic pharmaceuticals
• We are adversely impacted by changes in the economic environments in which we operate, including from inflation, an economic slowdown, a recession, or fluctuations in foreign currency exchange rates
• We might be adversely impacted by tax legislation or challenges to our tax positions
• Conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors adversely impact our business operations and our financial position or results of operations
• We may be adversely affected by global climate change or by regulatory or market responses to such change
• Evolving expectations and regulatory requirements related to governance and sustainability matters may damage our reputation and have an adverse effect on our business, financial condition, and results of operations
• Exclusive forum provisions in our bylaws could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers, or employees

Filings

Other Health Care companies