MCK official logo MCK
MCK 3-star rating from Upturn Advisory
McKesson Corporation (MCK) company logo

McKesson Corporation (MCK)

McKesson Corporation (MCK) 3-star rating from Upturn Advisory
$816.06
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Upturn Advisory Summary

01/09/2026: MCK (3-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 3 star rating for performance

Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

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 $939.33

1 Year Target Price $939.33

Analysts Price Target For last 52 week
$939.33 Target price
52w Low $568.11
Current$816.06
52w High $894.75

Analysis of Past Performance

Type Stock
Historic Profit 50.34%
Avg. Invested days 72
Today’s Advisory PASS
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 01/09/2026

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 101.33B USD
Price to earnings Ratio 25.45
1Y Target Price 939.33
Price to earnings Ratio 25.45
1Y Target Price 939.33
Volume (30-day avg) 17
Beta 0.41
52 Weeks Range 568.11 - 894.75
Updated Date 01/9/2026
52 Weeks Range 568.11 - 894.75
Updated Date 01/9/2026
Dividends yield (FY) 0.36%
Basic EPS (TTM) 32.01

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 -
When -
Estimate -
Actual -

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 25.45
Forward PE 18.8
Enterprise Value 107485388267
Price to Sales(TTM) 0.26
Enterprise Value 107485388267
Price to Sales(TTM) 0.26
Enterprise Value to Revenue 0.28
Enterprise Value to EBITDA 17.7
Shares Outstanding 123426650
Shares Floating 123258790
Shares Outstanding 123426650
Shares Floating 123258790
Percent Insiders 0.03
Percent Institutions 90.8

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 a general wholesale business by Charles McKesson and John McKesson in New York City. Initially focused on importing and selling drugs and chemicals, it evolved into a leading pharmaceutical distributor. Key milestones include its significant expansion in the mid-20th century, the development of its distribution network, and strategic acquisitions that broadened its service offerings and geographic reach. McKesson has consistently adapted to changes in the healthcare landscape, becoming a vital link in the pharmaceutical supply chain.

Company business area logo Core Business Areas

  • Pharmaceuticals and Medical-Surgical Solutions: This segment distributes pharmaceuticals, medical supplies, and a broad range of branded and generic healthcare products to retail pharmacies, hospitals, clinics, and other healthcare providers. It also offers value-added services such as inventory management and patient support programs.
  • Medical Imaging and Information Solutions: This segment provides medical imaging, archival, and information management solutions to hospitals and healthcare systems. It includes software for managing medical images, electronic health records, and other clinical information.
  • Pioneering Health: This segment focuses on growing McKesson's participation in the biopharma services space, including oncology and other specialized therapeutics. It offers services such as patient access, reimbursement support, and distribution of specialty drugs.

leadership logo Leadership and Structure

McKesson Corporation is led by a Board of Directors and a senior executive management team, headed by the Chief Executive Officer. The company operates through its distinct business segments, each with dedicated leadership, focused on delivering specialized services and products within the healthcare ecosystem.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Generic Pharmaceuticals Distribution: McKesson is a major distributor of generic pharmaceuticals to pharmacies and healthcare providers across the US. While specific market share data for individual product categories is proprietary, McKesson holds a significant share in the overall pharmaceutical distribution market. Competitors include Cardinal Health (CAH) and AmerisourceBergen (ABC).
  • Specialty Pharmaceuticals Distribution: This includes the distribution of high-cost, complex drugs, particularly in areas like oncology. McKesson's 'Pioneering Health' segment is crucial here. Competitors include Cardinal Health (CAH) and AmerisourceBergen (ABC), as well as specialized distributors.
  • Medical-Surgical Supplies: McKesson provides a wide array of medical-surgical supplies to healthcare facilities. Market share data is fragmented, but McKesson is a significant player. Competitors include Owens & Minor (OMI), Cardinal Health (CAH), and AmerisourceBergen (ABC).
  • Pharmacy Technology Solutions: This includes software and services for retail pharmacies to manage operations, prescriptions, and patient care. Competitors include various software providers and other distributors with integrated technology offerings.

Market Dynamics

industry overview logo Industry Overview

The pharmaceutical distribution and healthcare services industry is characterized by intense competition, regulatory oversight, evolving reimbursement models, and a growing demand for integrated solutions. Key trends include the rise of specialty pharmaceuticals, the increasing importance of patient access programs, and the digitization of healthcare.

Positioning

McKesson is one of the largest healthcare distribution companies in the United States and a global leader. Its competitive advantages include its extensive distribution network, strong relationships with manufacturers and healthcare providers, broad product and service offerings, and significant scale, which allows for operational efficiencies. The company's ability to manage complex supply chains and provide value-added services further solidifies its position.

Total Addressable Market (TAM)

The total addressable market for pharmaceutical distribution and healthcare services is substantial, encompassing billions of dollars annually. McKesson is well-positioned within this TAM, serving a broad spectrum of customers from large hospital systems to independent pharmacies and biopharmaceutical manufacturers. The company's diversified business model allows it to capture value across various segments of the healthcare market.

Upturn SWOT Analysis

Strengths

  • Extensive distribution network and logistical capabilities.
  • Strong relationships with pharmaceutical manufacturers and healthcare providers.
  • Diversified business model across various healthcare segments.
  • Significant scale and market presence providing cost advantages.
  • Expertise in managing complex supply chains and regulatory environments.

Weaknesses

  • High reliance on pharmaceutical distribution, which can be subject to margin pressures.
  • Potential exposure to litigation and regulatory scrutiny.
  • Integration challenges with past acquisitions.
  • Vulnerability to market shifts in drug pricing and payer policies.

Opportunities

  • Growth in specialty pharmaceuticals and biopharmaceutical services.
  • Expansion into new geographic markets and emerging healthcare models.
  • Leveraging technology and data analytics for improved efficiency and customer service.
  • Increasing demand for integrated healthcare solutions and patient support programs.
  • Potential for further consolidation in the healthcare services industry.

Threats

  • Intensifying competition from other major distributors and emerging players.
  • Government regulations and policy changes impacting drug pricing and reimbursement.
  • Supply chain disruptions due to geopolitical events or natural disasters.
  • Cybersecurity threats and data breaches.
  • Shifts in healthcare delivery models and payer strategies.

Competitors and Market Share

Key competitor logo Key Competitors

  • Cardinal Health (CAH)
  • AmerisourceBergen Corporation (ABC)

Competitive Landscape

McKesson's advantages lie in its scale, established relationships, and comprehensive service offerings. Its disadvantages can include the inherent margin pressures in pharmaceutical distribution and the complexities of managing a vast, diverse business. Competitors often vie for market share through pricing, service specialization, and innovation in healthcare solutions.

Major Acquisitions

Change Healthcare Inc.

  • Year: 2022
  • Acquisition Price (USD millions): 13000
  • Strategic Rationale: To enhance McKesson's technology capabilities and expand its healthcare technology solutions, aiming to improve administrative efficiency and data interoperability within the healthcare system.

Growth Trajectory and Initiatives

Historical Growth: McKesson has demonstrated consistent historical growth, largely driven by increased pharmaceutical volumes, strategic acquisitions, and expansion into adjacent healthcare services. The company has navigated industry shifts by adapting its service offerings and operational efficiencies.

Future Projections: Future growth for McKesson is projected to be driven by the increasing demand for healthcare services, the expansion of specialty pharmaceuticals, and the continued need for efficient pharmaceutical distribution. Analyst estimates often point to steady revenue growth and a focus on margin improvement through operational enhancements and strategic service expansion. (Specific numerical projections are subject to analyst reports.)

Recent Initiatives: Recent initiatives may include investments in technology for supply chain optimization, expansion of biopharmaceutical services, and efforts to enhance patient support programs. The company also actively pursues strategic acquisitions to strengthen its market position and service capabilities.

Summary

McKesson Corporation is a robust player in the healthcare distribution and services sector, leveraging its extensive network and diversified offerings. Its strengths lie in its market dominance and operational scale, while opportunities exist in specialty pharmaceuticals and technology integration. However, the company must remain vigilant against regulatory changes, competitive pressures, and the inherent margin challenges of its core distribution business to sustain its growth trajectory.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • McKesson Corporation Investor Relations
  • Securities and Exchange Commission (SEC) Filings
  • Industry Analyst Reports
  • Financial News Outlets

Disclaimers:

This JSON output is for informational purposes only and does not constitute financial advice. All data presented is based on publicly available information and may be subject to change. Market share and financial data are estimates and may not be precise. Investors should conduct their own due diligence before making any investment decisions.

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 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.