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McKesson (MCK) Stock Analysis

This is a peer-relative look at McKesson (MCK): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Health Care Equipment & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for McKesson (MCK)
Profile ItemMCK
NameMcKesson Corporation
Country/RegionUnited States
GICS SectorHealth Care
GICS Industry GroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
GICS Sub-IndustryHealth Care Distributors
Market Capitalization105.86 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateNovember 10, 1994
Security TypeCommon Stock

Price Performance

Cumulative Growth

MCK
GSPC
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McKesson (MCK) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for McKesson (MCK) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McKesson (MCK) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Total Return (1Y)31.83%13.93%
Total Return (3Y, Annualized)30.68%3.86%
Total Return (5Y, Annualized)35.20%-5.90%

Risk Profile

Drawdown History

MCK
GSPC
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McKesson (MCK) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for McKesson (MCK) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Volatility (1Y, Annualized)31.23%49.97%
Beta (5Y)0.290.89
Max Drawdown (5Y)-27.17%-71.88%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MCK is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Sharpe Ratio (1Y)0.890.23
Sortino Ratio (1Y)1.510.36

Profitability

ROE (TTM)

No usable ROE is available for McKesson (MCK) this period, so the shareholder-equity return read is skipped.

MCK

Health Care Equipment & Services industry group

--

Group distribution
Max
47.06%
Q3
14.51%
Median
4.31%
Q1
-15.70%
Min
-56.60%
MCK
--
Largest peers
ISRG
17.42%
SYK
16.51%
UNH
14.15%
MDT
10.65%
ABT
10.58%
CVS
6.21%
MCK
--
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McKesson (MCK) doesn’t report ROE this period; the box shows the Health Care Equipment & Services group’s distribution and the dots its largest members.

Net Margin (TTM)

McKesson (MCK) keeps 1.12% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

MCK

Health Care Equipment & Services industry group

1.12%

Group distribution
Max
29.35%
Q3
9.14%
Median
1.95%
MCK
1.12%
Q1
-7.34%
Min
-30.69%
Largest peers
ISRG
28.45%
SYK
14.43%
MDT
13.93%
ABT
11.65%
UNH
3.14%
CVS
1.19%
MCK
1.12%
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Where McKesson (MCK) stands on net margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

McKesson (MCK) turns 1.35% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

MCK

Health Care Equipment & Services industry group

1.35%

Group distribution
Max
38.55%
Q3
13.91%
Median
6.64%
MCK
1.35%
Q1
-2.87%
Min
-27.93%
Largest peers
ISRG
33.60%
SYK
27.02%
MDT
19.33%
ABT
14.71%
UNH
7.13%
CVS
3.86%
MCK
1.35%
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Where McKesson (MCK) stands on operating margin within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
ROE (TTM)--4.31%
ROA (TTM)4.74%3.44%
Net Margin (TTM)1.12%1.95%
Operating Margin (TTM)1.35%6.64%
Gross Margin (TTM)3.63%55.79%

Growth

Revenue Growth

McKesson (MCK) grew revenue 12.36%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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McKesson (MCK): Revenue Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

EPS Growth

McKesson (MCK) grew earnings per share 49.22%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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McKesson (MCK): EPS Growth across different time periods, set against Health Care Equipment & Services industry-group medians.

Growth Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Revenue Growth (YoY)12.36%11.65%
Revenue Growth (3Y CAGR)13.39%10.88%
EPS Growth (YoY)49.22%4.84%
EPS Growth (3Y CAGR)15.31%13.94%

Financial Strength

Current Ratio (MRQ)

McKesson (MCK) has current ratio of 0.89, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MCK

Health Care Equipment & Services industry group

0.89

Group distribution
Max
7.62
Q3
4.06
Median
1.95
Q1
1.34
MCK
0.89
Min
0.46
Largest peers
ISRG
4.96
SYK
2.16
MDT
2.07
ABT
1.38
MCK
0.89
CVS
0.87
UNH
0.78
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Where McKesson (MCK) stands on current ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

No usable debt-to-equity ratio is available for McKesson (MCK) this period, so the balance-sheet leverage read is skipped.

MCK

Health Care Equipment & Services industry group

--

Group distribution
Max
1.96
Q3
1.01
Median
0.64
Q1
0.15
Min
0.00
MCK
--
Largest peers
CVS
0.96
UNH
0.69
SYK
0.64
ABT
0.63
MDT
0.55
MCK
--
ISRG
--
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McKesson (MCK) doesn’t report debt-to-equity ratio this period; the box shows the Health Care Equipment & Services group’s distribution and the dots its largest members.

Financial Strength Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Current Ratio (MRQ)0.891.95
Debt / Equity (MRQ)--0.64
Net Debt / EBITDA0.942.12

Dividends

Dividend Yield (TTM)

McKesson (MCK) has dividend yield of 0.36%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

MCK

Health Care Equipment & Services industry group

0.36%

Group distribution
MCK
0.36%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MDT
3.06%
CVS
2.74%
ABT
2.28%
UNH
2.23%
SYK
1.13%
MCK
0.36%
ISRG
0.00%
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Where McKesson (MCK) stands on dividend yield within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

McKesson (MCK) has payout ratio of 8.80%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

MCK

Health Care Equipment & Services industry group

8.80%

Group distribution
MCK
8.80%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ABT
78.96%
MDT
70.20%
CVS
70.18%
UNH
57.52%
SYK
36.06%
MCK
8.80%
ISRG
0.00%
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Where McKesson (MCK) stands on payout ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
Dividend Yield (TTM)0.36%0.00%
Dividend Payout Ratio (TTM)8.80%0.00%

Valuation

P/E Ratio (TTM)

McKesson (MCK) trades at P/E ratio of 24.33, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

MCK

Health Care Equipment & Services industry group

24.33

Group distribution
Max
79.35
Q3
45.56
Median
27.58
MCK
24.33
Q1
20.24
Min
1.56
Largest peers
ISRG
42.00
ABT
35.06
SYK
31.45
CVS
25.53
UNH
25.51
MCK
24.33
MDT
23.19
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Where McKesson (MCK) stands on P/E ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

McKesson (MCK) trades at 0.26 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.

MCK

Health Care Equipment & Services industry group

0.26

Group distribution
Max
9.55
Q3
4.54
Median
2.26
Q1
1.13
MCK
0.26
Min
0.03
Largest peers
ISRG
11.91
SYK
4.50
ABT
4.05
MDT
3.21
UNH
0.79
CVS
0.30
MCK
0.26
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Where McKesson (MCK) stands on P/S ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

McKesson (MCK) has negative P/B ratio of -24.84, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

MCK

Health Care Equipment & Services industry group

-24.84

Group distribution
Max
12.65
Q3
6.10
Median
3.23
Q1
1.71
Min
-2.21
MCK
-24.84
Largest peers
ISRG
7.14
SYK
4.85
ABT
3.67
UNH
3.65
MDT
2.44
CVS
1.55
MCK
-24.84
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Where McKesson (MCK) stands on P/B ratio within its Health Care Equipment & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

McKesson (MCK) metric values compared with Health Care Equipment & Services industry-group medians
MetricCurrent stock: MCKIndustry group median
P/E Ratio (TTM)24.3327.58
P/S Ratio (TTM)0.262.26
P/B Ratio (MRQ)-24.843.23
Free Cash Flow Yield (TTM)6.42%3.36%