# McKesson Corporation (MCK) — Stock CV

McKesson Corporation is a $109B healthcare company. Revenue grew 8.8% over the last year, it keeps 1¢ of every dollar of sales as profit, and its net debt equals ~0.7 years of free cash flow. It trades at 23.8× earnings — around the middle of its own history.

> McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers.

## Identity

- **Ticker**: MCK
- **Sector**: Healthcare
- **Industry**: Wholesale-Drugs, Proprietaries & Druggists' Sundries
- **Headquarters**: IRVING, TX
- **Employees**: 43 000
- **Website**: https://www.mckesson.com
- **Market cap**: $109B
- **Last price**: $938.84
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $411B
- **Net income**: $4.59B
- **Free cash flow**: $6.42B
- **Net debt**: $4.81B
- **P/E**: 23.8
- **Revenue growth (YoY)**: 8.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 65 |
| Profitability | 61 |
| Health | 69 |
| Quality | 90 |
| Moat | 43 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +8.8% YoY
- [x] Profitable — $4.59B TTM
- [x] Profit growing — +15.3% YoY
- [x] Generates cash — $6.42B TTM
- [x] Debt under control — ~0.7y of cash flow to repay
- [x] Established company — $109B market cap
- [x] Not printing shares — -22.7% shares over ~5y
- [x] Proven track record — 10/11 profitable years
- [x] Financially stable — Altman Z 2.3 — grey
- [x] Pays a dividend — yield 0.36%
- [x] Valuation not extreme — P/E 23.8

## Experience (career milestones)

- **2025** — The McKesson Corporation signed a definitive agreement to acquire 80% interest in PRISM Vision…
- **FY2025** — Became debt-free: cash now exceeds total debt
- **FY2017** — Best year on record: $5.07B net income
- **FY2016** — First recorded profitable year: $2.26B net income
- **FY2016** — Revenue already above $100B: $191B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **2014** — McKesson acquired Celesio to become one of the world's largest healthcare companies
- **2013** — PSS World Medical was acquired
- **2010** — McKesson acquired the oncology and physician services company US Oncology, Inc
- **Jan 6, 2006** — McKesson acquired NDCHealth Corporation
- **1999** — McKesson acquired medical information systems firm HBO & Company (HBOC)
- **1967** — Foremost Dairies, a company founded by James Cash Penney
- **1853** — A third partner, Daniel Robbins, who joined the enterprise as it grew

## Strengths

- Could repay net debt from ~1.0 years of free cash flow
- Interest covered 1551.3× by operating earnings
- High returns on invested capital (ROIC 119.7%)

## Watch-outs

- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $264B | $1.11B | $4.05B |
| FY2023 | $277B | $3.56B | $4.77B |
| FY2024 | $309B | $3.00B | $3.88B |
| FY2025 | $359B | $3.29B | $5.55B |
| FY2026 | $403B | $4.76B | $5.72B |

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Source: https://stockcv.com/MCK — derived from company filings; may be delayed or incomplete. Information, not investment advice.