MCK$845.46
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Powered by LiveAIOverall Analysis
BuyMcKesson Corporation exhibits strong fundamental performance with consistent revenue growth and profitability. While its valuation is currently on the higher side, its significant market position and consistent dividend payments make it an attractive long-term investment. Technical indicators suggest a neutral to slightly bearish short-term outlook, but the overall trend remains positive.
Thematic
McKesson is well-positioned within the healthcare distribution and services sector, benefiting from demographic trends and the increasing complexity of pharmaceutical supply chains. Its focus on technology solutions for healthcare providers and its role in medical-surgical supply distribution further solidify its thematic relevance.
Fundamental
McKesson demonstrates robust financial health with strong revenue growth, consistent profitability, and a manageable debt level. Its efficient operations and significant market share contribute to its strong fundamental standing. The company also provides a reliable dividend.
Technical
McKesson's stock is currently trading below key short-term moving averages and exhibits mixed oscillator signals, suggesting a period of consolidation or a minor pullback. The longer-term trend remains positive, but immediate technical indicators suggest caution.
| Factor | Score |
|---|---|
| Healthcare Demand & Demographics | 90 |
| Pharmaceutical Supply Chain Complexity | 85 |
| Healthcare Technology & Solutions | 75 |
| Medical-Surgical Supply Chain | 70 |
| Regulatory Landscape | 65 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 75 |
| Growth | 70 |
| Balance Sheet Health | 70 |
| Cash Flow | 85 |
| Dividend | 70 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 55 |
| Volume Confirmation | 70 |
| Support & Resistance | 65 |
| Oscillators | 50 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent EPS Surprises
McKesson Corporation (MCK) has consistently exceeded earnings per share (EPS) estimates in the majority of its recent quarters, indicating robust operational execution and effective cost management. For example, Q4 2024 reported EPS of $7.07, beating the estimate of $6.88.
Attractive P/E Ratio Relative to TTM Earnings
The trailing twelve months (TTM) P/E ratio of 27.63 is reasonable given the company's earnings and projected growth, especially when compared to its industry peers. The PE ratio based on TTM earnings of 27.63 offers a potentially favorable entry point for long-term investors.
Bearish Points (7)
High Forward P/E Multiple
The forward P/E ratios (e.g., 66.6 in 2025Q1) appear high compared to the trailing P/E, suggesting that future earnings growth is already significantly priced into the stock, potentially leading to overvaluation if growth targets are not met.
Mixed Revenue Trends
While annual revenue shows growth, quarterly revenue figures can be volatile. For example, the reported revenue for 2024Q2 was $79.28 billion, while 2024Q3 reached $93.65 billion, indicating significant quarterly fluctuations that warrant close monitoring.
Calendar
June 2025
2
Ex-Dividend Date
July 2025
1
Next Dividend Date
August 2025
7
Next Earnings Date
H: $8.49
A: $8.16
L: $7.78
H: 99.18B
A: 96.05B
L: 92.96B
Profile
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners to address challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver solutions to help people get the medicine needed to live healthier lives; and provides medication access and affordability, prescription decision support, prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services, as well as electronic prior authorization services. The Medical-Surgical Solutions segment offers medical-surgical supply distribution, logistics, biomedical maintenance, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, post-acute care facilities, hospital reference labs, and home health care agencies. The International segment delivers deliver medicines, supplies, and information technology solutions to retail pharmacies, hospitals, long-term care centers, clinics and institutions; and provides logistics and distribution services for manufacturers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
Seasonals
Price Target
768.50 USD
The 39 analysts offering 1 year price forecasts for MCK have a max estimate of 824.00 and a min estimate of 610.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
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Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 95
Direct and primary competitor in pharmaceutical and medical product distribution, serving similar customer bases including hospitals, pharmacies, and healthcare providers.
Weight: 95
Direct and primary competitor in pharmaceutical distribution, forming an oligopoly with McKesson and Cardinal Health in the US drug wholesale market.
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Operates the largest pharmacy chain in the US and a major Pharmacy Benefit Manager (PBM) through Caremark, making it both a significant customer for drug distribution and a competitor in certain integrated healthcare services.
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A major retail pharmacy chain and customer for pharmaceutical distribution, representing a critical part of the drug supply chain served by McKesson.