McKesson (MCK) - 23.15% Below 52-Week High: Buy or Wait?

Stock Details

McKesson Corporation (MCK), a prominent company in the healthcare sector within the medical distribution industry, is based in United States and primarily trades on the NYQ.Currently, the stock is trading at $767.70. Over the past 52 weeks, it has ranged between $637.00 and $999.00. This places the current price at 76.8% of its 52-week high and 20.5% above its 52-week low. Recent trading volume was recorded at 13,511. The International Securities Identification Number (ISIN) for this stock is US58155Q1031.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

19.57

Near market average

Forward P/E

14.91

Earnings expected to grow

PEG Ratio

1.47

Reasonably valued

EV/EBITDA

14.00

EPS (TTM)

$38.36

Price to Sales

0.22

Beta

0.32

Less volatile than market

Q:How is MCK valued relative to its earnings and growth?

McKesson Corporation trades at a P/E ratio of 19.57, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 14.91 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.47 indicates reasonable value when growth is considered.

Q:What is MCK's risk profile compared to the market?

With a beta of 0.32, McKesson Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability.

Performance & Growth

Profit Margin

1.18%

Operating Margin

2.21%

EBITDA

$6.88B

Return on Assets

4.99%

Revenue Growth (YoY)

6.00%

Earnings Growth (YoY)

37.20%

Q:How profitable and efficient is MCK's business model?

McKesson Corporation achieves a profit margin of 1.18%, meaning it retains $1.18 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 2.21% reveals how efficiently the company runs its core business operations before interest and taxes.

Q:What are MCK's recent growth trends?

McKesson Corporation's revenue grew by 6.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 37.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Medical Distribution industry averages for proper context.

Dividend Information

Dividend Per Share

$3.28

Dividend Yield

0.44%

Ex-Dividend Date

Jun 1, 2026

Dividend Date

Jul 1, 2026

Q:What dividend income can investors expect from MCK?

McKesson Corporation offers a dividend yield of 0.44%, paying $3.28 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Jun 1, 2026.

Q:How reliable is MCK's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - McKesson Corporation pays $3.28 per share in dividends against earnings of $38.36 per share, resulting in a payout ratio of 8.55%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Jul 1, 2026.

Company Size & Market

Market Cap

$87.9B

Revenue (TTM)

$403.43B

Revenue/Share (TTM)

$3,264.00

Shares Outstanding

117.08M

Book Value/Share

-$18.10

Asset Type

EQUITY

Q:What is MCK's market capitalization and position?

McKesson Corporation has a market capitalization of $87.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 117.08M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Medical Distribution industry, it competes with other firms in this sector.

Q:How does MCK's price compare to its book value?

McKesson Corporation's book value per share is -$18.10, while the current stock price is $767.70, resulting in a price-to-book (P/B) ratio of -42.41. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$941.40

22.63% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for MCK?

17 analysts cover MCK with 76% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $941.40 implies 22.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on MCK?

Current analyst recommendations:3 Strong Buy, 10 Buy, 3 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jun 21, 2026, 02:27 AM

McKesson Corporation (MCK) Stock