McKesson Corp (MCK) Stock Analysis
Verdict: HOLD
Valuation is decoupled from strong fundamental earnings growth; defensive scale provides a floor despite recent executive selling and technical weakness.
Investment score: 64/100
Analysis as of
Is McKesson Corp stock worth reviewing? The TradeMates thesis
McKesson is a defensive powerhouse currently undergoing a technical correction. While executive selling is a yellow flag, the 48.9% earnings growth and dominance in pharma distribution provide a margin of safety at 19.6x earnings.
7-factor investment score
- Valuation: 72/100 (weight 20%)
- Financial Health: 65/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 80/100 (weight 10%)
- Risk-Adjusted Return: 75/100 (weight 15%)
McKesson Corp opportunities and risks
What speaks for MCK
- Aggressive Shareholder Returns
What speaks against MCK
- Clustered Insider Selling
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MCK | 20.0x | 0.2x | 14.1x | 3.6% | 1.2% | 6.3% |
| COR | 21.3x | 0.2x | 12.9x | 3.5% | 0.8% | 2.9% |
| CAH | 34.3x | 0.2x | 19.3x | 3.7% | 0.6% | 8.2% |
| HSIC | 23.8x | 0.7x | 12.9x | 29.7% | 3.0% | 4.6% |
| AHCO | n/a | 0.5x | 7.2x | 5.4% | -2.8% | 13.9% |
| ACH | n/a | 0.1x | 6.0x | 41.3% | -39.8% | -84.1% |
| Peer median | 21.3x | 0.2x | 12.9x | 5.4% | 0.6% | 4.6% |
Frequently asked questions about McKesson Corp (MCK)
Is MCK stock a good investment?
The TradeMates model rates McKesson Corp as HOLD with an investment score of 64/100. McKesson is a defensive powerhouse currently undergoing a technical correction. While executive selling is a yellow flag, the 48.9% earnings growth and dominance in pharma distribution provide a margin of safety at 19.6x earnings. This is algorithmic model output, not personal investment advice.
Is MCK stock a buy?
The TradeMates model verdict for MCK is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.