# McKesson Corporation (MCK) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Healthcare / Health Care Providers & Services. Price $907.99, market value $105.9 billion.

## Valuation
- **P/E (trailing): 24.3×** (5-yr avg 25.6×, 3-yr avg 24.1×). McKesson Corporation trades at 24.3× trailing earnings, close to its own five-year average of 25.6×. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 18.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.37**. A PEG of 0.37 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **EV / EBITDA: 15.9×**. Enterprise value is 15.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.1%** (5-yr avg 7.1%). Free cash flow equals 6.1% of the market value, in line with its five-year average of 7.1%. Above 5% is generally attractive.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Gross margin: 3.6%**. McKesson Corporation keeps 3.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 1.6%**. 1.6% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.2%**. 1.2% of each dollar of sales reaches the bottom line.
- **Return on equity: -219.2%**. Return on equity is negative because earnings are negative.
- **Return on assets: 5.6%**. Each dollar of assets produces 5.6% of profit.

## Growth
- **Revenue growth (1 yr): 12.4%** (3-yr 13.4%/yr, 5-yr 11.1%/yr). Revenue grew 12.4% over the last year, against 11.1% a year compounded over five years.
- **EPS growth (1 yr): 49.2%** (3-yr 15.3%/yr). Earnings per share rose 49.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 6.2%/yr**. Free cash flow has compounded at 6.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.41%** ($3.28 per share, trailing). McKesson Corporation yields 0.41%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 8%** (6% of free cash flow). 8% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 13.0%/yr** (1-yr 15.0%). The dividend has compounded at 13.0% a year over five years, doubling roughly every 6 years at that pace.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover McKesson Corporation; the consensus is buy, with an average price target of $980.73 (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 31.7%** (YTD 10.9%, 3-mo 17.1%). The shares are up 31.7% over twelve months including dividends.
- **From 52-week high: -9.1%** (32.0% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): -0.29** (volatility 31%). Beta of -0.29 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MCK · Page: https://foliofundamentals.com/stocks/mck

Not investment advice.