📊 MCK Key Takeaways
Is Mckesson Corp. (MCK) a Good Investment?
McKesson demonstrates strong operational fundamentals with 12.4% revenue growth and robust $5.7B free cash flow generation, but is hindered by negative stockholders' equity of -$2.2B and deteriorating liquidity ratios, creating balance sheet vulnerability despite excellent interest coverage and cash flow capacity. The company's wholesale distribution model inherently produces thin margins (1.2% net margin), making it vulnerable to economic shocks while net income declined 6.6% YoY despite revenue growth.
McKesson shows strong scale-driven execution, with double-digit revenue growth, solid operating cash generation, and strong interest coverage despite inherently thin distribution margins. The core business appears financially resilient, but declining net income, sub-1.0 liquidity ratios, and negative equity make the growth quality good rather than exceptional.
Mckesson Corp. Key Strengths (MCK)
- Strong revenue growth of 12.4% YoY in mature wholesale distribution sector
- Robust free cash flow generation of $5.7B with healthy operating cash flow of $6.2B
- Excellent interest coverage ratio of 28.2x demonstrates strong debt service capability
- EPS growth of 49.2% reflects effective capital allocation and shareholder returns
- Revenue growth of 16.2% YoY indicates strong demand and operating scale
- Free cash flow of $2.41B and modest capex needs support cash generation
- Interest coverage of 18.5x suggests debt servicing capacity remains strong
MCK Stock Risks: Mckesson Corp. Investment Risks
- CRITICAL: Negative stockholders equity of -$2.2B indicates balance sheet insolvency and capital structure deterioration
- Liquidity crisis indicators with current ratio 0.85x and quick ratio 0.49x both below safety thresholds
- Net income declining 6.6% YoY despite revenue growth signals margin compression or cost control issues
- Razor-thin margins (1.2% net, 1.5% operating) leave minimal buffer for economic downturns or operational disruptions
- Heavy reliance on debt financing ($6.5B long-term debt) with negative equity cushion
- Margins are structurally very thin, leaving limited cushion if pricing or volumes weaken
- Negative stockholders equity reduces balance-sheet flexibility and makes some leverage metrics less informative
- Current ratio of 0.88x and quick ratio of 0.48x indicate tight liquidity management
Key Metrics to Watch
- Stockholders equity trend and timing of recovery to positive territory
- Operating margin trajectory and gross margin stability
- Current and quick ratios as indicators of liquidity stress
- Operating cash flow consistency and free cash flow sustainability
- Debt levels relative to EBITDA and refinancing capabilities
- Operating margin and net income trend versus revenue growth
- Operating cash flow and free cash flow consistency
Mckesson Corp. (MCK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MCK Profit Margin, ROE & Profitability Analysis
MCK vs Market Sector: How Mckesson Corp. Compares
How Mckesson Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mckesson Corp. Stock Overvalued? MCK Valuation Analysis 2026
Based on fundamental analysis, Mckesson Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mckesson Corp. Balance Sheet: MCK Debt, Cash & Liquidity
MCK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mckesson Corp.'s revenue has grown significantly by 53% over the 5-year period, indicating strong business expansion. The most recent EPS of $22.39 reflects profitable operations.
MCK Revenue Growth, EPS Growth & YoY Performance
MCK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $95.3B | $879.0M | $6.95 |
| Q2 2026 | $93.7B | $241.0M | $1.87 |
| Q1 2026 | $79.3B | $784.0M | $6.25 |
| Q3 2025 | $80.9B | $589.0M | $4.42 |
| Q2 2025 | $77.2B | $241.0M | $1.87 |
| Q1 2025 | $74.5B | $915.0M | $7.00 |
| Q3 2024 | $70.5B | $589.0M | $4.42 |
| Q2 2024 | $70.2B | $664.0M | $4.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mckesson Corp. Dividends, Buybacks & Capital Allocation
MCK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mckesson Corp. (CIK: 0000927653)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MCK
What is the AI rating for MCK?
Mckesson Corp. (MCK) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MCK's key strengths?
Claude: Strong revenue growth of 12.4% YoY in mature wholesale distribution sector. Robust free cash flow generation of $5.7B with healthy operating cash flow of $6.2B. ChatGPT: Revenue growth of 16.2% YoY indicates strong demand and operating scale. Free cash flow of $2.41B and modest capex needs support cash generation.
What are the risks of investing in MCK?
Claude: CRITICAL: Negative stockholders equity of -$2.2B indicates balance sheet insolvency and capital structure deterioration. Liquidity crisis indicators with current ratio 0.85x and quick ratio 0.49x both below safety thresholds. ChatGPT: Margins are structurally very thin, leaving limited cushion if pricing or volumes weaken. Negative stockholders equity reduces balance-sheet flexibility and makes some leverage metrics less informative.
What is MCK's revenue and growth?
Mckesson Corp. reported revenue of $403.4B.
Does MCK pay dividends?
Mckesson Corp. pays dividends, with $381.0M distributed to shareholders in the trailing twelve months.
Where can I find MCK SEC filings?
Official SEC filings for Mckesson Corp. (CIK: 0000927653) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MCK's EPS?
Mckesson Corp. has a diluted EPS of $38.38.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MCK's fundamental grade?
Based on our AI fundamental analysis in June 2026, Mckesson Corp. has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MCK stock overvalued or undervalued?
Valuation metrics for MCK: ROE of N/A (sector avg: 15%), net margin of 1.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is MCK's AI grade for 2026?
Our dual AI analysis gives Mckesson Corp. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MCK's free cash flow?
Mckesson Corp.'s operating cash flow is $6.2B, with capital expenditures of $436.0M. FCF margin is 1.4%.
How does MCK compare to other Market stocks?
Vs Default sector averages: Net margin 1.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.85 (avg: 1.8).