XStocksXray

Research report · 16 October 2026

Mckesson Corp (MCK)

Health Care · Health Care Distributors · US stock · price as of 16 Oct 2026

Key indicators

Price	$1,004.84
52-week range	$722.11 – $1,014.99
Market cap	$119.8B
P/E (trailing)	26.9×
EV / EBITDA	18.2×
Free-cash-flow yield	5.4%
Dividend yield	0.3%
Revenue (last 12 months)	$411.0B
Revenue growth (3y a year)	13.4%
Operating margin	1.6%
Return on invested capital	1,640.1%
Net debt / EBITDA	0.7×

Fair value

Blended fair value$658.07 range $658 – $658

Versus priceOvervalued−35% to fair value

Peer multiples	$569.25
Fundamentals-adjusted multiple	$746.89
10-year DCF (market-scaled)	$3,389.45
Earnings power value (floor, not blended)	$401.51
Model uncertainty	High

X-Ray Score

55/ 100 · High confidence · ahead of 62% of sector peers

Valuation50

Growth73

Profitability54

Financial health45

Dividends55

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

McKesson is a health care distribution company. It buys medicines and medical supplies from manufacturers and delivers them to pharmacies, hospitals, clinics and physician offices, and it also provides pharmacy technology, oncology services and related support. Revenue comes from the sale of pharmaceuticals and supplies, which carries a low percentage margin on very large volumes, with additional earnings from services and technology products.

Sales reached $411.0 billion in the last twelve months, having grown 13.4% a year over the past three years. Operating profit equals 1.6% of revenue. Return on invested capital is 1640%. Net debt is 0.7 times of EBITDA. It pays a dividend, and the yield is 0.3%.

StocksXray gives Mckesson Corp an X-Ray Score of 55 out of 100 (high confidence), ahead of 62% of the S&P 500 stocks in its sector. Its strongest lens is growth (73) and its weakest is financial health (45).

Our fair value blend is $658.07 (range $658.07 to $658.07). At $1,004.84 the stock trades 53% above that blend, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.

XStocksXray

Mckesson Corp (MCK)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2022	FY2023	FY2024	FY2025	FY2026	Now
Price	$299.47	$350.35	$531.13	$668.90	$863.49	$1,004.84
Market cap	$46.1B	$49.8B	$71.2B	$85.7B	$107.2B	$119.8B
P/E	41.4×	14.0×	23.7×	26.0×	22.5×	26.9×
EV / revenue	0.2×	0.2×	0.2×	0.2×	0.3×	0.3×
EV / EBITDA	20.8×	11.0×	17.3×	18.3×	16.9×	18.3×
Price / free cash flow	11.4×	10.4×	18.3×	15.4×	18.7×	18.7×
Free-cash-flow yield	8.8%	9.6%	5.5%	6.5%	5.3%	5.4%
Price / book	–	–	–	–	–	–
Dividend yield	0.61%	0.60%	0.45%	0.41%	0.37%	0.34%

Fundamentals checklist ● 6 Good · ● 4 Average · ● 6 Bad · each check graded against the sector

Cash quality

Earnings backed by cash−2.6%Bad

Free-cash-flow yield5.4%Average

Risk models

Altman Z score0.7×Bad

Piotroski F-Score6 of 9Average

Growth

EPS growth (3y)15.3%Good

Free-cash-flow growth (3y)6.2%Average

Revenue growth (3y)13.4%Good

Growth consistency100%Good

Balance sheet

Current ratio0.9×Bad

Net debt / EBITDA0.7×Good

Interest cover23.6×Average

Valuation

Fair value vs price0.7×Bad

EBIT / EV yield5.2%Good

Profitability

Return on invested capital1,640.1%Good

Operating margin1.6%Bad

Gross profitability16.9%Bad

Red flags

Negative equity — Book equity is negative

XStocksXray

Mckesson Corp (MCK)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY22	FY23	FY24	FY25	FY26	LTM
Revenue	263,966	276,711	308,951	359,051	403,430	410,983
Gross profit	13,130	12,358	12,828	13,323	14,550	14,956
Operating income	2,038	4,381	3,909	4,422	6,212	6,495
Net income	1,114	3,560	3,002	3,295	4,762	4,592
Diluted EPS ($)	7.23	25.03	22.39	25.72	38.38	37.38
Free cash flow	4,046	4,769	3,883	5,548	5,719	6,416
Gross margin	5.0%	4.5%	4.2%	3.7%	3.6%	3.6%
Operating margin	0.8%	1.6%	1.3%	1.2%	1.5%	1.6%
Net margin	0.4%	1.3%	1.0%	0.9%	1.2%	1.1%
Balance sheet	FY22	FY23	FY24	FY25	FY26	LTM
Total assets	63,298	62,320	67,443	75,140	82,323	88,330
Cash	3,532	4,678	4,583	5,691	3,975	5,164
Total debt	5,879	5,594	5,629	5,654	6,526	9,729
Equity	-2,272	-1,857	-1,971	-2,074	-2,172	-4,240
Dividend per share ($)	1.83	2.09	2.40	2.75	3.17	3.28

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	90,823	97,827	103,150	106,158	96,295	105,380
Growth vs a year earlier	+18.9%	+23.4%	+10.1%	+11.4%	+6.0%	+7.7%
Net income ($M)	1,260	784	1,110	1,186	1,682	614
Diluted EPS ($)	–	6.25	8.92	9.59	–	5.15

XStocksXray

Mckesson Corp (MCK)

Peers in Health Care Distributors

Company	X-Ray
MCK · Mckesson Corp	55
CAH · Cardinal Health Inc	52
COR · Cencora, Inc.	49
HSIC · Henry Schein Inc	42

Market Compass outlook for Health Care: Neutral (51/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	+7.0%
1 month	+14.2%
3 months	+21.0%
6 months	+16.2%
1 year	+27.4%
3 years	+123.0%
5 years	+415.0%

Technical summary

DailyBullish12 bullish · 0 neutral · 4 bearish

WeeklyStrongly bullish11 bullish · 0 neutral · 1 bearish

MonthlyStrongly bullish7 bullish · 1 neutral · 0 bearish

50-day / 200-day average	$896.11 / $852.59
52-week low / high	$722.11 / $1,014.99
Classic pivot, support and resistance	S2 990.65 · S1 997.74 · P – · R1 1,013.46 · R2 1,022.09

Recent dividends

Ex-dividend date	Amount per share
1 Sep 2026	$0.9400
1 Jun 2026	$0.8200
2 Mar 2026	$0.8200
1 Dec 2025	$0.8200
2 Sep 2025	$0.8200
2 Jun 2025	$0.7100

XStocksXray

Mckesson Corp (MCK)

Strengths

Return on invested capital of 1,640.1% is ahead of 99% of its sector peers.
Revenue growth of 13.4% a year over three years is ahead of 86% of its sector peers.
Net debt is only 0.7× EBITDA, ahead of 81% of its sector peers.
Piotroski F-Score of 6 out of 9: most of the nine accounting health tests pass.
Has raised its dividend for 5 years in a row.

Risks and weak spots

Earnings backed by cash is weak against Health Care peers (−2.6%).
Altman Z score is weak against Health Care peers (0.7×).
Current ratio is weak against Health Care peers (0.9×).
Fair value vs price is weak against Health Care peers (0.7×).
Operating margin is weak against Health Care peers (1.6%).
Gross profitability is weak against Health Care peers (16.9%).
The Altman Z score of 0.7× is in the distress zone.
The price is above our fair value range, so good news may already be in the price.

Latest SEC filings

Date	Form	Items
6 Oct 2026	8-K	7.01,9.01
28 Aug 2026	8-K	7.01,9.01
5 Aug 2026	10-Q
5 Aug 2026	8-K	2.02,9.01
24 Jul 2026	8-K	5.07
1 Jul 2026	8-K	5.02,7.01,9.01
12 Jun 2026	DEF 14A
12 Jun 2026	8-K	1.01,2.03,9.01

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.