MCK
McKesson Corporation · Health Care · Health Care Distributors
$873.79
52w 673.38 – 999.00
20y monthly, adjusted
Mkt cap
$101.9B
P/E
21.0
P/FCF
17.5
FCF yield
5.7%
ROE
-219.2%
Shldr yield
5.1%
div 0.4% + bb 4.7%
What today's price assumes
At $101.9B, the market is pricing in 5.9% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 6.0% per year — expectations are roughly in line with history.
Simple DCF per-share range: $748 · $867 · $1,081 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 9.3× across 19 years, MCK would trade near $489/share (25th–75th percentile: $355–$698); it trades at 16.6× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+13.4%
Rev 5y
+11.1%
Rev 10y
+7.8%
EPS 5y
—
EPS 10y
+14.7%
FCF 5y
+6.9%
FCF 10y
+6.0%
Fundamentals
Fiscal 2008–2026, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q1'27 | $105.4B | +7.7% | $614.0M | −21.7% | 5.15 | −$220.0M |
| Q4'26 * | $96.3B | +6.0% | $1.7B | +33.5% | 13.62 | $3.4B |
| Q3'26 | $106.2B | +11.4% | $1.2B | +34.9% | 9.59 | $1.2B |
| Q2'26 | $103.2B | +10.1% | $1.1B | +360.6% | 8.92 | $2.4B |
| Q1'26 | $97.8B | +23.4% | $784.0M | −14.3% | 6.25 | −$918.0M |
| Q4'25 * | $90.8B | +18.9% | $1.3B | +59.3% | 9.90 | $7.7B |
| Q3'25 | $95.3B | +17.8% | $879.0M | +49.2% | 6.95 | −$2.4B |
| Q2'25 | $93.7B | +21.3% | $241.0M | −63.7% | 1.87 | $2.1B |
| Q1'25 | $79.3B | +6.4% | $915.0M | −4.5% | 7.00 | −$1.4B |
| Q4'24 * | $76.4B | +10.8% | $791.0M | +0.5% | 6.03 | $4.1B |
| Q3'24 | $80.9B | +14.8% | $589.0M | −45.4% | 4.42 | $254.0M |
| Q2'24 | $77.2B | +10.1% | $664.0M | −28.3% | 4.92 | $965.0M |
| Q1'24 | $74.5B | +10.9% | $958.0M | +24.7% | 7.02 | −$1.1B |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +13.4% | +11.1% | +7.8% | +8.9% |
| Operating cash flow | +6.1% | +6.3% | +5.3% | +6.7% |
| Free cash flow | +6.2% | +6.9% | +6.0% | +6.9% |
| EPS (diluted) | +15.3% | +40.7% | +14.7% | +15.2% |
| Equity | −22.9% | −8.6% | −3.8% | — |
| LT debt | +5.3% | −1.8% | −2.1% | +4.1% |
| Diluted shares | −4.4% | −5.0% | −6.1% | −4.9% |
| Stock price | +29.0% | +34.4% | +17.7% | +18.1% |
$100, 3 years ago
$215vs $176 in SPY
29.0% vs 20.7%/yr
$100, 5 years ago
$439vs $181 in SPY
34.4% vs 12.6%/yr
$100, 10 years ago
$510vs $412 in SPY
17.7% vs 15.2%/yr
$100, 15 years ago
$1,219vs $813 in SPY
18.1% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$5.08
$71.8B created / $14.1B retained
Last 10 years
$4.54
$64.9B created / $14.3B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
141.4%
OCF ÷ (equity + debt)
OCF / EV yield
6.0%
MC vs 10× OCF
1.63
≤1 = priced under 10× OCF
Debt / FCF
1.1y
SBC / FCF
4.3%
Owner earnings
$5.5B
OCF − capex − SBC
OE yield
5.5%
Share count 5y
−4.8%
per year; negative = buybacks
Capital intensity
0.7%
net PP&E ÷ revenue
Sales efficiency
$0.00
new PP&E per $1 new revenue, 5y
Checklist
20 of 26 checks pass · 77%. Checks with structurally missing inputs are excluded.
Growth & Consistency
5/6
- pass
Revenue growth
11.1% · 5y CAGR ≥ 5%
- na
EPS growth
— · 5y CAGR ≥ 5%
- pass
FCF growth
6.9% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
9 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
9 of 10 · net income > 0 in ≥ 8 of last 10
- fail
Cash flow keeps up with sales
6.3% vs 11.1% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
3/7
- fail
Net margin
1.2% · ≥ 8%
- fail
Operating margin
1.5% · ≥ 10%
- pass
Gross margin stable or rising
3.6% vs 4.5% · no drop > 2 pts over 3y
- fail
Return on equity
-219.2% · ≥ 12%
- pass
Cash ROIC
141.4% · ≥ 12%
- fail
FCF margin
1.4% · ≥ 5%
- pass
Earnings back their cash
OCF $6.2B vs NI $4.8B · OCF ≥ net income (latest FY)
Balance Sheet
4/5
- pass
Debt payable from cash flow
1.1y · LT debt ≤ 3× FCF
- pass
Cash cushion
61% · cash ≥ 50% of LT debt
- pass
Leverage
-3.00 · LT debt ≤ 1.5× equity
- fail
Equity positive and compounding
−$2.2B · equity > 0 and grew over ~5y
- pass
Interest burden
4% · interest ≤ 15% of operating income
Capital Allocation
4/4
- pass
Share count flat or shrinking
-4.8% · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
4% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
90% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
10 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
4/4
- pass
FCF yield
5.7% · ≥ 3%
- pass
Earnings multiple
21.0 · P/E ≤ 25
- pass
Price asks less than history delivered
5.9% vs 6.0% · implied FCF growth ≤ historical FCF CAGR
- pass
Shareholder yield
5.1% · dividends + buybacks ≥ 2% of market cap
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 403,430 | 14,550 | 6,212 | 4,762 | 38.38 | 6,155 | 436 | 5,719 | 381 | 4,750 | 247 | 3,975 | 6,526 | -2,172 | 124 |
| 2025 | 359,051 | 13,323 | 4,422 | 3,295 | 25.72 | 6,085 | 537 | 5,548 | 345 | 3,146 | 226 | 5,691 | 5,654 | -2,074 | 128 |
| 2024 | 308,951 | 12,828 | 3,909 | 3,002 | 22.39 | 4,314 | 431 | 3,883 | 314 | 3,025 | 182 | 4,583 | 5,629 | -1,971 | 134 |
| 2023 | 276,711 | 12,358 | 4,381 | 3,560 | 25.03 | 5,159 | 390 | 4,769 | 292 | 3,638 | 162 | 4,678 | 5,594 | -1,857 | 142 |
| 2022 | 263,966 | 13,130 | 2,038 | 1,114 | 7.23 | 4,434 | 388 | 4,046 | 277 | 3,516 | 161 | 3,532 | 5,879 | -2,272 | 154 |
| 2021 | 238,228 | 12,148 | -5,040 | -4,539 | -28.26 | 4,542 | 451 | 4,091 | 276 | 742 | 151 | 6,278 | 7,148 | -21 | 161 |
| 2020 | 231,051 | 12,023 | 2,489 | 900 | 4.95 | 4,374 | 362 | 4,012 | 294 | 1,934 | 119 | 4,015 | 7,387 | 5,092 | 182 |
| 2019 | 214,319 | 11,754 | 886 | 34 | 0.17 | 4,036 | 426 | 3,610 | 292 | 1,639 | 95 | 2,981 | 7,595 | 8,094 | 197 |
| 2018 | 208,357 | 11,184 | 762 | 67 | 0.32 | 4,345 | 405 | 3,940 | 262 | 1,709 | 69 | 2,672 | 7,880 | 9,804 | 209 |
| 2017 | 198,533 | 11,271 | 7,122 | 5,070 | 22.73 | 4,744 | 404 | 4,340 | 253 | 2,311 | 115 | 2,783 | 8,362 | 11,095 | 223 |
| 2016 | 190,884 | 11,416 | 3,545 | 2,258 | 9.70 | 3,672 | 488 | 3,184 | 244 | 1,612 | 123 | 4,048 | 8,107 | 8,924 | 233 |
| 2015 | 179,045 | 11,411 | 2,968 | 1,476 | 6.27 | 3,112 | 376 | 2,736 | 227 | 450 | 174 | 5,341 | 9,709 | 8,001 | 235 |
| 2014 | 137,392 | 8,352 | 2,439 | 1,263 | 5.41 | 3,136 | 278 | 2,858 | 214 | 130 | 160 | 4,193 | 10,346 | 8,522 | 233 |
| 2013 | 122,196 | 6,881 | 2,347 | 1,338 | 5.59 | 2,483 | 241 | 2,242 | 194 | 1,214 | 167 | 2,456 | 4,873 | 7,070 | 239 |
| 2012 | 122,321 | 6,402 | 2,124 | 1,403 | 5.59 | 2,950 | 221 | 2,729 | 195 | 1,874 | 154 | 3,149 | 3,072 | 6,831 | 251 |
| 2011 | 112,084 | 5,970 | 1,821 | 1,202 | 4.57 | 2,338 | 233 | 2,105 | 171 | 2,050 | 137 | 3,612 | 3,587 | 7,220 | 263 |
| 2010 | 108,702 | 5,676 | 2,008 | 1,263 | 4.62 | 2,316 | 199 | 2,117 | 131 | 323 | 114 | 3,731 | 2,293 | 7,532 | 273 |
| 2009 | 106,632 | 5,378 | 1,196 | 823 | 2.95 | 1,351 | 195 | 1,156 | 116 | — | 99 | 2,109 | 2,290 | 6,193 | 279 |
| 2008 | 101,703 | 5,009 | 1,478 | 990 | 3.32 | 869 | 195 | 674 | 70 | — | 91 | 1,362 | — | 6,121 | 298 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.