MCK

Healthcare

McKesson Corporation · Medical - Distribution · $92B

UQS Score — Balanced Preset
50.5
Below Average

McKesson Corporation scores 50.5/100 using the Balanced preset.

UQS vs Healthcare Sector
MCK
50.5
Sector avg
32.4
Quality
Weak
Moat
Neutral
Growth
Neutral
Risk
Good
Valuation
Good

What is McKesson Corporation?

McKesson Corporation is one of the largest healthcare distribution and services companies in the world, connecting pharmaceutical manufacturers, pharmacies, hospitals, and patients across the United States and internationally.

McKesson generates revenue by distributing branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical products to a broad range of healthcare providers. Its Medical-Surgical Solutions segment supplies logistics and distribution services to clinics and hospitals, while the Prescription Technology Solutions segment connects pharmacies, payers, and biopharma companies through access and adherence platforms. An international arm extends these capabilities across Europe and Canada.

Founded in 1833 and headquartered in Irving, Texas, McKesson has grown into a cornerstone of the modern healthcare supply chain.

  • Pharmaceutical distribution — branded, generic, and specialty drugs
  • Medical-surgical supply distribution and logistics
  • Prescription technology and patient adherence solutions (RxTS)
  • Oncology practice management and clinical support services
  • Third-party logistics and wholesale distribution for biopharma

Is MCK a Good Stock to Buy?

UQS Score rates MCK as Good overall, reflecting a balanced profile across its five analytical pillars.

McKesson's Growth and Risk pillars both register as Good, suggesting the business is expanding at a meaningful pace while maintaining a manageable risk profile relative to sector peers. The Valuation pillar also reads as Good, indicating the stock does not appear significantly stretched compared to its fundamentals.

The Quality and Moat pillars both sit at Neutral, pointing to thinner structural advantages and profitability characteristics that are more in line with — rather than clearly above — the broader healthcare distribution sector.

See the exact pillar breakdown and underlying financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does MCK pay dividends?

Yes — McKesson Corporation pays a dividend.

McKesson pays a regular dividend, consistent with its long operating history and relatively stable cash generation from large-scale distribution contracts. The dividend reflects management's confidence in recurring revenue streams rather than a high-yield income strategy — growth reinvestment and share repurchases also play a role in capital allocation.

When does MCK report earnings?

McKesson reports earnings on a quarterly cadence, typical for US-listed large-cap equities.

McKesson's distribution scale and diversified segment mix have supported consistent revenue throughput, with the pharmaceutical segment remaining the primary volume driver. Specialty drug growth and RxTS platform expansion have contributed to the overall trajectory in recent periods.

For the most recent quarter's results and guidance, visit McKesson's investor relations page directly.

MCK Price History

+349.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in McKesson Corporation?

$
Today it would be worth
$44,516
That's a +345% total return, or +34.8% annualized.

Based on McKesson Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

MCK Long-term Outlook

McKesson's Good Growth pillar suggests the business is on a constructive expansion path, supported by secular demand for pharmaceutical distribution and specialty drug adoption. The Good Risk pillar indicates the company's financial structure and operational model are not flashing near-term warning signs. However, the Neutral Moat pillar is a reminder that pricing power in drug distribution is structurally limited, which could cap margin expansion over time.

Growth drivers

  • Rising specialty and biosimilar drug volumes flowing through the U.S. Pharmaceutical segment
  • Expansion of the RxTS platform connecting payers, pharmacies, and biopharma partners
  • Ongoing demand for medical-surgical logistics across outpatient and community care settings

Key risks

  • Thin distribution margins leave earnings sensitive to contract renegotiations with large customers
  • Regulatory and reimbursement changes in pharmaceutical pricing could compress segment profitability
  • Valuation headroom is moderate — any growth shortfall may weigh on the stock's relative standing

MCK vs Peers

McKesson operates in a concentrated pharmaceutical distribution market alongside a small number of large-scale rivals.

CORMCK scores higher
Cencora, Inc.

Cencora focuses heavily on specialty pharmaceutical distribution and has deep relationships with manufacturer services, making it a direct peer in the oncology and specialty drug supply chain.

CAHMCK scores higher
Cardinal Health, Inc.

Cardinal Health competes across both pharmaceutical distribution and medical products, with a significant at-home and nuclear pharmacy services presence that differentiates its segment mix.

HSICMCK scores higher
Henry Schein, Inc.

Henry Schein targets dental and medical practitioners rather than large health systems, giving it a distinct customer base within the broader healthcare distribution landscape.

Frequently Asked Questions

What does McKesson do?

McKesson distributes pharmaceutical products — branded, generic, specialty, and biosimilar — to pharmacies, hospitals, and healthcare providers across the US and internationally. It also provides medical-surgical logistics, oncology practice support, and technology solutions that connect pharmacies, payers, and biopharma companies.

Does MCK pay dividends?

Yes, McKesson pays a regular dividend. The company's large-scale distribution operations generate recurring cash flows that support consistent dividend payments, though capital is also allocated toward share repurchases and reinvestment in technology platforms.

When does MCK report earnings?

McKesson reports on a quarterly cadence, in line with standard US-listed large-cap practice. For the exact schedule and most recent results, check McKesson's official investor relations page.

Is MCK a good stock to buy?

UQS Score rates MCK as Good overall. The Growth, Risk, and Valuation pillars all register positively, while Quality and Moat are Neutral — suggesting a stable but not structurally dominant business. Whether it fits your portfolio depends on your own investment criteria. View the full pillar breakdown on UQS Pro.

Is MCK overvalued?

The UQS Valuation pillar for MCK reads as Good, which suggests the stock is not obviously overpriced relative to its fundamentals. That said, valuation is one of five pillars — the complete picture requires reviewing Quality, Growth, Moat, and Risk together.

How does MCK compare to its competitors?

McKesson competes directly with Cencora and Cardinal Health in large-scale pharmaceutical distribution, and more broadly with Henry Schein in medical supply. All three peers operate in similarly margin-thin distribution environments. UQS Pro members can view side-by-side pillar comparisons for each competitor.

What is MCK's market cap bracket?

McKesson is classified as a large-cap company, reflecting its scale as one of the leading pharmaceutical distributors in the United States and a significant international operator.

Who founded McKesson?

McKesson was founded in 1833, making it one of the oldest companies in the US healthcare sector. Founding details are widely available through public historical records and McKesson's own corporate history resources.

Is MCK a long-term quality stock?

As a long-term quality indicator, MCK's Good UQS Score reflects a business with positive growth characteristics and a manageable risk profile. The Neutral Moat pillar is worth monitoring — durable competitive advantages are a key ingredient for long-term compounding. Pro members can track pillar changes over time.

What is the main competitive advantage of McKesson?

McKesson's primary advantage lies in its distribution scale and deeply embedded relationships across the pharmaceutical supply chain — from manufacturers to pharmacies and health systems. Its RxTS technology platform adds a layer of stickiness by integrating payers, providers, and biopharma partners into a single access ecosystem.

What sector does MCK belong to?

McKesson operates in the Healthcare sector, specifically within pharmaceutical and medical distribution. It sits at the infrastructure layer of the healthcare system rather than in drug development or direct patient care.

Is MCK a growth stock or value stock?

Based on UQS pillar labels, MCK leans toward a blend — the Growth pillar reads as Good, suggesting meaningful expansion, while the Valuation pillar also reads as Good rather than deep-value territory. It does not fit neatly into either pure category.

Unlock the Full MCK Analysis

Sign in to unlock the detailed analysis behind the UQS Score.

  • View exact scores for all five UQS pillars
  • Access underlying financial metrics driving each pillar
  • Compare MCK side-by-side with COR, CAH, and HSIC
  • Track pillar changes across reporting periods
  • Screen large-cap healthcare stocks by quality and risk
  • Get the complete analyst-grade view in one dashboard
Analyze MCK in Detail →

Pro Analysis

MCK — Score History

4550556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 14 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202650.539.546.045.466.767.2-4.8
May 7, 202655.341.446.064.164.772.5+0.3
May 3, 202655.041.446.064.164.771.10.0
Apr 26, 202655.041.446.064.164.770.5+0.4
Apr 22, 202654.641.446.064.164.768.4+0.1
Apr 21, 202654.541.446.064.164.767.5-0.1
Apr 19, 202654.641.446.064.164.768.4-0.2
Apr 18, 202654.841.446.063.764.769.9-0.8
Apr 14, 202655.641.446.063.764.775.3+0.1
Apr 12, 202655.541.446.063.664.775.1+0.1

MCK — Pillar Breakdown

Quality

39.5/100 (25%)

McKesson Corporation has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Strong

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

45.4/100 (20%)

McKesson Corporation shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthModerate

Analyst consensus for future earnings growth.

Risk

66.7/100 (15%)

McKesson Corporation maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

67.1/100 (15%)

McKesson Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

46/100 (25%)

McKesson Corporation possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for MCK.

Score Composition

Quality
39.5×25%9.9
Growth
45.4×20%9.1
Risk
66.7×15%10.0
Valuation
67.1×15%10.1
Moat
46.0×25%11.5
Total
50.5Below Average

Financial Data

More Stock Analysis

How is the MCK UQS Score Calculated?

The UQS (Unified Quality Score) for McKesson Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses McKesson Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether McKesson Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.