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Upturn AI SWOT - About
MCK 
McKesson Corporation (MCK)
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Upturn Advisory Summary
08/28/2025: MCK (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
17 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $788.57
1 Year Target Price $788.57
| 10 | Strong Buy |
| 3 | Buy |
| 3 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 43.16% | Avg. Invested days 75 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 85.02B USD | Price to earnings Ratio 27.4 | 1Y Target Price 788.57 |
Price to earnings Ratio 27.4 | 1Y Target Price 788.57 | ||
Volume (30-day avg) 17 | Beta 0.5 | 52 Weeks Range 462.92 - 737.89 | Updated Date 08/28/2025 |
52 Weeks Range 462.92 - 737.89 | Updated Date 08/28/2025 | ||
Dividends yield (FY) 0.42% | Basic EPS (TTM) 24.95 |
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 2025-08-06 | When - | Estimate 8.19 | Actual 8.26 |
Profitability
Profit Margin 0.84% | Operating Margin (TTM) 1.29% |
Management Effectiveness
Return on Assets (TTM) 4.18% | Return on Equity (TTM) - |
Valuation
Trailing PE 27.4 | Forward PE 18.21 | Enterprise Value 92532976459 | Price to Sales(TTM) 0.23 |
Enterprise Value 92532976459 | Price to Sales(TTM) 0.23 | ||
Enterprise Value to Revenue 0.25 | Enterprise Value to EBITDA 17.83 | Shares Outstanding 124384000 | Shares Floating 124202792 |
Shares Outstanding 124384000 | Shares Floating 124202792 | ||
Percent Insiders 0.03 | Percent Institutions 90.64 |
Upturn AI SWOT
McKesson Corporation
Company Overview
History and Background
McKesson Corporation was founded in 1833 as Olcott, McKesson & Co. It has evolved from a drug importing and wholesaling business to a global healthcare services and information technology company.
Core Business Areas
- U.S. Pharmaceutical: Distributes branded, generic, and over-the-counter pharmaceuticals and other healthcare-related products in the U.S. Also provides services to pharmacies, hospitals, and other healthcare providers.
- Prescription Technology Solutions: Provides technology solutions and services to connect payers, pharmacies, and providers to optimize medication access, adherence, and patient outcomes.
- Medical-Surgical Solutions: Provides medical-surgical supplies, equipment, and services to healthcare providers in various settings, including hospitals, physician offices, and long-term care facilities.
- International: Operates pharmaceutical wholesale and retail businesses, primarily in Europe and Canada.
Leadership and Structure
The company is led by a CEO and executive team, and it operates with a hierarchical organizational structure with various business units and functional departments.
Top Products and Market Share
Key Offerings
- Market Share (%): 25
- Pharmaceutical Distribution: Distributes pharmaceuticals to retail chains, independent pharmacies, and institutional healthcare providers. McKesson holds a significant market share in pharmaceutical distribution within the US (approximately 25%). Competitors include Cardinal Health and AmerisourceBergen.
- Medical-Surgical Supplies: Distributes medical-surgical supplies to hospitals, surgery centers, and other healthcare facilities. Competitors include Cardinal Health and Medline Industries.
- Prescription Technology Solutions: Provides pharmacy management software, data analytics, and other technology solutions. Competitors include Change Healthcare (now part of Optum/UnitedHealth Group), and Epic.
Market Dynamics
Industry Overview
The healthcare industry is undergoing significant transformation due to factors such as an aging population, rising healthcare costs, and technological advancements. Pharmaceutical distribution and healthcare technology are key growth areas.
Positioning
McKesson is a leading player in the healthcare supply chain, with a strong position in pharmaceutical distribution and medical-surgical supplies. Its competitive advantage lies in its scale, distribution network, and technology offerings.
Total Addressable Market (TAM)
The estimated total addressable market for pharmaceutical distribution and medical-surgical supplies is in the hundreds of billions of dollars annually. McKesson is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Large distribution network
- Strong relationships with pharmaceutical manufacturers and healthcare providers
- Diversified business segments
- Established brand reputation
- Significant Market Share
Weaknesses
- Exposure to regulatory changes and pricing pressures
- Dependence on key suppliers and customers
- Litigation risks related to opioid distribution
- Profit margin pressure in generic drugs
- Complex Business Model
Opportunities
- Growth in specialty pharmaceuticals
- Expansion of healthcare technology solutions
- Increasing demand for home healthcare services
- Strategic acquisitions and partnerships
- Further penetration into emerging markets
Threats
- Intense competition from other distributors and manufacturers
- Government regulations and reimbursement policies
- Economic downturns and healthcare spending cuts
- Supply chain disruptions
- Increased consolidation among healthcare providers
Competitors and Market Share
Key Competitors
- CAH
- ABC
Competitive Landscape
McKesson competes with other major pharmaceutical distributors, medical-surgical supply companies, and healthcare technology providers. Its key competitive advantages include its scale, distribution network, and technology offerings.
Major Acquisitions
REXALL HEALTH
- Year: 2016
- Acquisition Price (USD millions): 2.2
- Strategic Rationale: Rexall Health was acquired by McKesson to strengthen its presence in Canada. Specifically, the acquisition allowed McKesson to enhance its retail pharmacy network and pharmaceutical distribution capabilities within the Canadian market.
Growth Trajectory and Initiatives
Historical Growth: McKesson has experienced steady growth in revenue and earnings over the past decade, driven by acquisitions, organic growth, and strategic initiatives.
Future Projections: Analysts project continued growth for McKesson, driven by increasing demand for pharmaceuticals and healthcare services. Revenue is expected to grow at a rate of 4% - 6% annually over the next few years.
Recent Initiatives: McKesson has recently focused on expanding its healthcare technology offerings, investing in data analytics capabilities, and streamlining its operations to improve efficiency.
Summary
McKesson is a strong player in the healthcare supply chain, benefiting from a large distribution network and diverse business segments. While the company faces regulatory risks and competition, its focus on technology and strategic acquisitions positions it for future growth. Solid financial performance and a healthy balance sheet suggest stability but need to be mindful of litigation risks.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Financial News Articles
- Industry Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance may change over time.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.mckesson.com |
Full time employees 43000 | Website https://www.mckesson.com | ||
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.
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