McKesson Corporation
Wholesale-Drugs, Proprietaries & Druggists' Sundries
McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers.
It is a $109B healthcare company. Revenue grew 8.8% over the last year, it keeps 1¢ of every dollar of sales as profit, and its net debt equals ~0.7 years of free cash flow. It trades at 23.8× earnings — around the middle of its own history.
- Website
- mckesson.com
- Location
- Irving, TX
- Employees
- 43 000
- Sector
- Healthcare
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong quality; Moat lags behind.
Valuation69
- P/E vs own history41th pct · 12/25
- FCF yield5.9% · 20/25
- P/S0.3x · 25/25
- EV/EBITDA16.9x · 12/25
Growth65
- Revenue CAGR11.2% · 20/25
- Net income CAGR43.8% · 25/25
- EPS CAGR ~5Yn/a · 0/25
- Fwd implied growth26.8% · 20/25
Profitability61
- ROIC119.7% · 25/25
- ROE39.4% · 25/25
- Net margin1.1% · 6/25
- Operating margin1.6% · 5/25
Health69
- Altman Z2.25 · 18/25
- Current ratio0.89 · 6/25
- Interest coverage1551.3x · 25/25
- Net cash / debtD/A 6% · 20/25
Quality90
- Piotroski F6/9 · 15/25
- Beneish M-2.58 · 25/25
- FCF conversion140% · 25/25
- Margin stabilityσ 1.0% · 25/25
Moat43
- ROIC >12% years5/8 yrs · 13/25
- Median gross margin5.1% · 0/25
- FCF-positive years11/11 yrs · 25/25
- Worst-year net marginworst -1.9% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2025AcquisitionThe McKesson Corporation signed a definitive agreement to acquire 80% interest in PRISM Vision…
- FY2025FinancialBecame debt-freecash now exceeds total debt
- FY2017FinancialBest year on record$5.07B net income
- FY2016FinancialFirst recorded profitable year$2.26B net income
- FY2016FinancialRevenue already above $100B$191B in first reported year
- FY2016FinancialPositive free cash flow every year since11-year streak
- 2014AcquisitionMcKesson acquired Celesio to become one of the world's largest healthcare companies
- 2013AcquisitionPSS World Medical was acquired
- 2010AcquisitionMcKesson acquired the oncology and physician services company US Oncology, Inc
- Jan 6, 2006AcquisitionMcKesson acquired NDCHealth Corporation
- 1999AcquisitionMcKesson acquired medical information systems firm HBO & Company (HBOC)
- 1967AcquisitionForemost Dairies, a company founded by James Cash Penney
- 1853MilestoneA third partner, Daniel Robbins, who joined the enterprise as it grew
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Could repay net debt from ~1.0 years of free cash flow
- Interest covered 1551.3× by operating earnings
- High returns on invested capital (ROIC 119.7%)
Watch-outs
- Loss-making in 1 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+8.8% YoY
- Profitable — makes more than it spends$4.59B TTM
- Profit growing — earnings are higher than last year+15.3% YoY
- Generates cash — cash left after running and investing$6.42B TTM
- Debt under control — could handle its obligations~0.7y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$109B market cap
- Not printing shares — share count not ballooning — you keep your slice-22.7% shares over ~5y
- Proven track record — years of profitability behind it10/11 profitable years
- Financially stable — balance sheet not near distressAltman Z 2.3 — grey
- Pays a dividend — returns cash to shareholdersyield 0.36%
- Valuation not extreme — price not wildly above earningsP/E 23.8
Peer comparisonMcKesson Corporation vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| MCK this company | $109.5B | 23.8 | +8.8% | 1.1% | Solid |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: MCK vs LLY · MCK vs JNJ · MCK vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/MCK
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of MCK on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $938.84 · market cap $109B.