McKesson Corporation (MCK) Stock

McKesson Corporation trades at a P/E ratio of 25.45, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 18.62 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.98 suggests the stock may be undervalued relative to its growth rate.

With a beta of 0.38, 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. The price-to-book ratio of 5.04 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

McKesson Corporation achieves a profit margin of 1.04%, meaning it retains $1.04 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 1.37% reveals how efficiently the company runs its core business operations before interest and taxes.0

McKesson Corporation's revenue grew by 10.10% 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 377.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against MEDICAL DISTRIBUTION industry averages for proper context.

McKesson Corporation offers a dividend yield of 0.36%, paying $2.95 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 Dec 1, 2025.

The dividend sustainability can be assessed through the payout ratio - McKesson Corporation pays $2.95 per share in dividends against earnings of $32.05 per share, resulting in a payout ratio of 9.20%. 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 Jan 2, 2026.

McKesson Corporation has a market capitalization of $101.4B, 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 123.43M shares outstanding, the company's ownership is relatively concentrated. As a major player in the MEDICAL DISTRIBUTION industry, it competes with other firms in this sector.

McKesson Corporation's book value per share is -$14.02, while the current stock price is $822.57, resulting in a price-to-book (P/B) ratio of -58.67. 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 a common stock, this represents equity ownership with voting rights.

16 analysts cover MCK with 75% 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 $939.33 implies 14.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 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.