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Upturn stock ratingUpturn stock rating
MCK logo

McKesson Corporation (MCK)

Upturn stock ratingUpturn stock rating
$725.78
Last Close (24-hour delay)
Profit since last BUY20.62%
upturn advisory
Consider higher Upturn Star rating
BUY since 105 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

06/27/2025: MCK (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

ratingratingratingratingrating

Below Average Performance

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

Number of Analysts

rating

17 Analysts rated it

These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.

Year Target Price $732.45

Year Target Price $732.45

Analyst’s Price TargetsFor last 52 week
$732.45Target price
Low$462.92
Current$725.78
high$736.36

Analysis of Past Performance

Type Stock
Historic Profit 47.12%
Avg. Invested days 72
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/27/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 90.65B USD
Price to earnings Ratio 28.25
1Y Target Price 758.57
Price to earnings Ratio 28.25
1Y Target Price 758.57
Volume (30-day avg) -
Beta 0.49
52 Weeks Range 462.92 - 736.36
Updated Date 06/29/2025
52 Weeks Range 462.92 - 736.36
Updated Date 06/29/2025
Dividends yield (FY) 0.39%
Basic EPS (TTM) 25.69

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 0.92%
Operating Margin (TTM) 1.53%

Management Effectiveness

Return on Assets (TTM) 4.31%
Return on Equity (TTM) -

Valuation

Trailing PE 28.25
Forward PE 19.46
Enterprise Value 92351608837
Price to Sales(TTM) 0.25
Enterprise Value 92351608837
Price to Sales(TTM) 0.25
Enterprise Value to Revenue 0.26
Enterprise Value to EBITDA 17.56
Shares Outstanding 124904000
Shares Floating 124900796
Shares Outstanding 124904000
Shares Floating 124900796
Percent Insiders 0.06
Percent Institutions 90.26

Analyst Ratings

Rating 4.29
Target Price 732.45
Buy 3
Strong Buy 10
Buy 3
Strong Buy 10
Hold 3
Sell 1
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

McKesson Corporation

stock logo

Company Overview

overview logo History and Background

McKesson Corporation was founded in 1833 as Olcott McKesson & Co. It has evolved from a drug import and wholesale business to a global leader in healthcare supply chain management solutions, retail pharmacy, and healthcare technology.

business area logo Core Business Areas

  • U.S. Pharmaceutical and Specialty Solutions: Distributes pharmaceutical products, provides specialty pharmaceutical services, and offers technology solutions to pharmacies, hospitals, and healthcare providers across the United States.
  • International: Offers pharmaceutical distribution, retail pharmacy services, and healthcare technology solutions in Europe and other international markets.
  • Medical-Surgical Solutions: Distributes medical-surgical supplies, equipment, and logistics services to healthcare providers, including hospitals, surgery centers, and physician offices.

leadership logo Leadership and Structure

McKesson is led by CEO Brian Tyler. The organizational structure includes various business units and functional departments, operating under a board of directors.

Top Products and Market Share

overview logo Key Offerings

  • Pharmaceutical Distribution: McKesson distributes a wide range of pharmaceutical products. Competitors include AmerisourceBergen and Cardinal Health. Market share is significant, estimated around 25% of the US market.
  • Medical-Surgical Distribution: Distributes medical and surgical supplies and equipment. Competitors include Cardinal Health and Owens & Minor. Market share is substantial, making it a major player in this segment.
  • Retail Pharmacy Solutions: Provides solutions for retail pharmacies, including technology and services. Competitors include CVS Health and Walgreens Boots Alliance.

Market Dynamics

industry overview logo Industry Overview

The healthcare distribution industry is characterized by high regulation, consolidation, and increasing demand driven by aging populations and technological advancements. Profitability is influenced by drug pricing pressures and supply chain efficiencies.

Positioning

McKesson is a leading player in the healthcare supply chain, holding a significant market share in pharmaceutical and medical-surgical distribution. Competitive advantages include its scale, established relationships, and integrated solutions. McKesson can benefit from both organic growth and from small strategic acquisitions.

Total Addressable Market (TAM)

The global healthcare supply chain market is estimated to be over $2 trillion. McKesson's positioning as a leading distributor and solutions provider allows it to capture a significant portion of this TAM.

Upturn SWOT Analysis

Strengths

  • Large market share
  • Extensive distribution network
  • Strong relationships with suppliers and customers
  • Diversified product and service offerings
  • Global presence

Weaknesses

  • Exposure to drug pricing pressures
  • Dependence on key suppliers
  • Legal and regulatory risks
  • Low profit margins compared to other industries
  • Debt Leverage

Opportunities

  • Expanding into new markets and geographies
  • Acquiring smaller competitors
  • Developing innovative healthcare solutions
  • Leveraging data analytics and technology
  • Growth in biosimilars and specialty drugs

Threats

  • Increased competition
  • Changes in healthcare regulations
  • Economic downturns
  • Supply chain disruptions
  • Cybersecurity threats

Competitors and Market Share

competitor logo Key Competitors

  • ABC
  • CAH

Competitive Landscape

McKesson competes with other large pharmaceutical distributors and healthcare technology companies. Its strengths include its scale and integrated solutions. Weaknesses include exposure to drug pricing pressures. Competitors such as ABC have comparable scale and distribution networks, making the market highly competitive.

Major Acquisitions

CoverMyMeds

  • Year: 2017
  • Acquisition Price (USD millions): 1100
  • Strategic Rationale: Expanded McKesson's technology solutions for pharmacies and patients.

Growth Trajectory and Initiatives

Historical Growth: McKesson has experienced steady growth in revenue, driven by acquisitions and organic expansion. However, profitability has been impacted by drug pricing pressures.

Future Projections: Analysts project continued growth in revenue and earnings, driven by increasing healthcare spending and strategic initiatives.

Recent Initiatives: Recent initiatives include investments in technology, expansion into new markets, and acquisitions of smaller companies.

Summary

McKesson is a strong player in the healthcare supply chain, benefiting from its scale and established relationships. Its pharmaceutical distribution business is a key strength, and investments in technology are promising. However, drug pricing pressures and regulatory risks pose challenges.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company SEC Filings (10-K, 10-Q)
  • Industry Reports (e.g., IBISWorld)
  • Analyst Reports (e.g., Morningstar, S&P Capital IQ)
  • Company Website
  • Market Research Reports

Disclaimers:

This analysis is based on publicly available information and analyst estimates. Investment decisions should be based on individual risk tolerance and thorough due diligence. Market conditions and company performance are subject to change.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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.