MCK official logo MCK
MCK 2-star rating from Upturn Advisory
McKesson Corporation (MCK) company logo

McKesson Corporation (MCK)

McKesson Corporation (MCK) 2-star rating from Upturn Advisory
$805.37
Last Close (24-hour delay)
Profit since last BUY5.99%
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BUY since 50 days
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Upturn Advisory Summary

12/03/2025: MCK (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 2 star rating for performance

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

3 star rating from financial analysts

17 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $934.79

1 Year Target Price $934.79

Analysts Price Target For last 52 week
$934.79 Target price
52w Low $555.78
Current$805.37
52w High $894.75

Analysis of Past Performance

Type Stock
Historic Profit 51.74%
Avg. Invested days 72
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 4.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/03/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 103.20B USD
Price to earnings Ratio 26.81
1Y Target Price 934.79
Price to earnings Ratio 26.81
1Y Target Price 934.79
Volume (30-day avg) 17
Beta 0.39
52 Weeks Range 555.78 - 894.75
Updated Date 12/2/2025
52 Weeks Range 555.78 - 894.75
Updated Date 12/2/2025
Dividends yield (FY) 0.34%
Basic EPS (TTM) 30.95

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-11-05
When After Market
Estimate 8.79
Actual 9.86

Profitability

Profit Margin 1.04%
Operating Margin (TTM) 1.37%

Management Effectiveness

Return on Assets (TTM) 4.78%
Return on Equity (TTM) -

Valuation

Trailing PE 26.81
Forward PE 19.57
Enterprise Value 111551062118
Price to Sales(TTM) 0.27
Enterprise Value 111551062118
Price to Sales(TTM) 0.27
Enterprise Value to Revenue 0.29
Enterprise Value to EBITDA 18.37
Shares Outstanding 123426650
Shares Floating 123257555
Shares Outstanding 123426650
Shares Floating 123257555
Percent Insiders 0.03
Percent Institutions 90.71

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

McKesson Corporation

McKesson Corporation(MCK) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

McKesson Corporation was founded in 1833 as Olcott & McKesson in New York City. It evolved from a drug importing and wholesaling business to a global healthcare services and information technology company, becoming a major player in pharmaceutical distribution and healthcare solutions.

Company business area logo Core Business Areas

  • U.S. Pharmaceutical: Distributes branded, generic, specialty, and over-the-counter pharmaceuticals and other healthcare-related products.
  • International: Provides pharmaceutical distribution and related services outside of the U.S., primarily in Europe and Canada. Includes services for pharmacies and healthcare providers.
  • Medical-Surgical Solutions: Offers medical-surgical supplies, equipment, and logistics services to healthcare providers in various settings.
  • Prescription Technology Solutions (RxTS): Provides enterprise pharmacy management software, prescription pricing and decision support, and clinical programs.

leadership logo Leadership and Structure

McKesson is led by CEO Brian Tyler. The organizational structure includes various business segments overseen by executive leadership, with a board of directors providing governance.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Pharmaceutical Distribution: Core business involving distributing pharmaceuticals to pharmacies, hospitals, and other healthcare providers. Accounts for the largest share of McKesson's revenue. Market share is significant within the U.S. pharmaceutical distribution market, competing with AmerisourceBergen and Cardinal Health. Competitors: AmerisourceBergen (ABC), Cardinal Health (CAH).
  • Medical-Surgical Supplies: Provides medical and surgical supplies and equipment to healthcare providers. McKesson is a major player in this market. Market share data is competitive within the medical supply industry. Competitors: Cardinal Health (CAH), Medline Industries.
  • Specialty Pharmaceutical Services: Offers specialized services related to specialty pharmaceuticals, including distribution, reimbursement support, and patient access programs. Revenue is substantial and growing with the expanding specialty drug market. Competitors: AmerisourceBergen (ABC), CVS Health (CVS).

Market Dynamics

industry overview logo Industry Overview

The pharmaceutical distribution industry is characterized by consolidation, increasing pricing pressures, and growing demand for specialty pharmaceuticals. Healthcare providers are seeking cost-effective supply chain solutions.

Positioning

McKesson is one of the top three pharmaceutical distributors in the U.S., possessing a broad distribution network and a comprehensive suite of healthcare solutions. Competitive advantages include its scale, established relationships, and technological capabilities.

Total Addressable Market (TAM)

The global pharmaceutical distribution market is estimated to be over $500 billion annually. McKesson is positioned to capture a substantial portion of this TAM through its established market presence and comprehensive service offerings.

Upturn SWOT Analysis

Strengths

  • Large scale and extensive distribution network
  • Established relationships with pharmaceutical manufacturers and healthcare providers
  • Comprehensive suite of healthcare solutions
  • Strong brand recognition

Weaknesses

  • Exposure to pricing pressures and reimbursement changes
  • Legal and regulatory risks related to opioid distribution
  • Reliance on a few large customers
  • Complexity of operations

Opportunities

  • Growth in specialty pharmaceuticals
  • Expansion into international markets
  • Development of new healthcare technologies and services
  • Acquisitions of smaller companies

Threats

  • Increased competition from other distributors and manufacturers
  • Government regulations and healthcare reforms
  • Economic downturns
  • Disruptive technologies

Competitors and Market Share

Key competitor logo Key Competitors

  • ABC
  • CAH

Competitive Landscape

McKesson competes with AmerisourceBergen and Cardinal Health based on scale, distribution network, service offerings, and technological capabilities. McKesson is known for its supply chain and its work to improve drug safety and efficacy. All three are dealing with litigation related to opioids.

Major Acquisitions

CoverMyMeds

  • Year: 2017
  • Acquisition Price (USD millions): 1100
  • Strategic Rationale: Expanded McKesson's technology solutions and strengthened its position in prescription price transparency.

Growth Trajectory and Initiatives

Historical Growth: McKesson has demonstrated steady growth through acquisitions, organic expansion, and market share gains.

Future Projections: Analyst estimates project continued growth in revenue and earnings, driven by the aging population and the increasing demand for healthcare services.

Recent Initiatives: Recent initiatives include investments in technology, strategic acquisitions, and cost-reduction programs.

Summary

McKesson is a strong player in the pharmaceutical distribution and healthcare services industry due to its vast scale and established relationships. Pricing pressures and regulatory risks are concerns, but the company's diversified offerings and strategic initiatives provide avenues for growth. Opioid litigation and regulation are headwinds which could impact future performance. Strategic acquisitions have helped increase its overall scale and improve its service offerings.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company SEC Filings
  • Industry Reports
  • Analyst Estimates
  • Company Website

Disclaimers:

This analysis is based on publicly available information and analyst estimates. It is for informational purposes only and does not constitute financial advice. Market conditions can change rapidly, affecting company performance.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About McKesson Corporation

Exchange NYSE
Headquaters Irving, TX, United States
IPO Launch date 1994-11-15
CEO & Director Mr. Brian S. Tyler Ph.D.
Sector Healthcare
Industry Medical Distribution
Full time employees 43000
Full time employees 43000

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.