Stock

McKesson Corporation

MCK
46
Medical - Distribution · Healthcare
Also trades as: 0JZU.L GBP 10.04 (-0.34%)
Price
$1000.77
-11.57 (-1.14%)
Market Cap
$116.68B
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
10/30
Growth
Good
13/20
Cash Flow
Strong
7/10
Stability
Good
5/10
Valuation
Strong
7/10
Ownership
Weak
1/15
Dividends
Good
3/5

46 of 100 counted points = Winston Score 46.

Share count falling — buybacks

−19.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 154.1M (2022) → 124.1M (2026)

§Winston Score History

The full picture

McKesson Corporation is one of the largest healthcare distribution companies in the United States. It moves medicines, medical supplies, and healthcare products from manufacturers to hospitals, pharmacies, and doctors' offices. Think of McKesson as a giant middleman that makes sure the right drugs and supplies get to the right places across the country.

McKesson makes money by buying products in bulk from drug makers and selling them to healthcare providers, earning a small margin on each transaction — which explains the very thin gross margins. It operates primarily in the United States, with some international presence, and generates over $300 billion in annual revenue, making it one of the largest companies in America by sales. Its size and deep relationships with suppliers and customers create a strong competitive position that is hard for smaller rivals to match. The main risk is that pricing pressure from large pharmacy chains and potential changes to drug distribution regulations could squeeze its already narrow margins further.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.7% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

-17.7% YoY

Quarterly reporting periods ended:

30 Jun 2025: $6.28

30 Jun 2026: $5.17

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS decreased year over year

R&D Spend

$103M/ year

↑ Rising (+13% vs prior year)

0.0% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~4 years

$5.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$5.2B cash & investments at current burn rate

Growth context

McKesson Corporation is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
3.5%
Thin — 3.5% gross margin
Profit after running costs
Operating Margin
1.3%
Thin — 1.3% operating margin
Return on the money invested
ROCE
17.7%
Strong — 17.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+8.8%
Steady sales growth (+8.8% YoY)
Profit growth
EPS YoY
+49.0%
Earnings growing fast (+49.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
149%
Turns 149% of profit into real cash
Spare cash per sale
FCF Margin
1.5%
Thin free cash flow (1.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
—
Data not available
Covers its interest
Interest Cover
43.49x
Comfortably covers interest (43.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
26.7x
Growth-priced — P/E 26.7

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+11.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (26.7 → 15.3)

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Dividends

Dividend
Dividend Yield
0.44%
Small dividend — 0.44% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+15.3%
Dividend growing fast (15.3% YoY)
Payout Ratio
9%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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