McKesson Corporation (MCK)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

McKesson is a scale distributor in a necessary but unforgiving business. In fiscal 2026, the year ended 2026-03-31, it reported revenue of $403.4B, net income of $4.8B, and diluted EPS of $38.38; revenue rose from $359.1B in fiscal 2025 and $309.0B in fiscal 2024, while EPS rose from $25.72 to $38.38. That top-line growth is real, but distribution economics are thin. In fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $105.4B and net income was $614.0M, a 0.58% margin, versus net income of $784.0M in fiscal Q1 2026, the quarter ended 2025-06-30. The provided profit growth is -21.68%, so recent earnings are moving the wrong way even as sales grow. The balance-sheet data are incomplete, but FairStock calculations show ROCE of 4.74% and a Piotroski F-score of 4/9, which do not suggest a high-return, fortress-like business; the Altman Z-score of 2.29 is middling. Cash generation is a positive: trailing FCF is $6.1B, a 5.3% FCF yield. Still, at the 2026-10-26 close of $992.87, FairStock calculations put the P/E at 26.61, EV/EBITDA at 16.43, and the FairStock score at 38/100. The shares also sit near the top of the $723.68 to $1,030.27 52-week range, so expectations are not depressed. For a low-margin distributor with negative recent profit growth, that is not a Graham-style bargain. I would want a wider margin of safety and evidence that earnings stabilize before calling it compelling.

In plain English: McKesson distributes medicines and medical supplies to pharmacies, hospitals, and clinics. The business is huge and generates cash, but it earns very thin margins and recent profit fell. At $992.87 on 2026-10-26, the price looks full relative to its earnings and not obviously cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer