Stock analysis · Bull Rankings model

MCK analysis

McKesson CorpHealth Care. Scored on the same transparent 7-signal model behind the daily rankings.

MCK
McKesson Corp · Health Care
FCF$5.7bB+
Rev+23.2%A-
D/E1.45C+
P/E19.3xB
PEG0.83B+
87Score
$766.08
1Y Target$827.37Near-term target
5Y Target$1,025Compound horizon
10Y Target$1,309Long-dated conviction
FCF$5.7bTTM · 03/26
B+
FCF $5.7b — strong cash profile, above most peers · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev+23.2%TTM YoY
A-
Revenue +23.2% — strong growth, well above S&P median (~7%) · TTM YoY from trailing-4-quarter revenue sum vs prior 4 quarters.
D/E1.45
C+
D/E 1.45 — moderately levered, watch interest coverage
P/E19.3x
B
P/E 19.3 — moderate premium, defensible with growth
PEG0.83proxy
B+
PEG 0.83 — near fair value, classic Lynch benchmark (1.0) · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).
Why now
Health Care · market cap $92.1b. Down 23% from 52-week high of $999.00 — deep drawdown territory. Revenue growing +23%, comfortably above the S&P median. PEG 0.83 — paying under fair value for the growth rate.
Moat
ROE 39% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. $92.1b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Net margin 1.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Horizon
1-3 yr $827.37 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $1,025 at ~6% CAGR — dividend + buyback compounding. 10 yr $1,309 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Shares to buy
2
Position size
$1,532
3.1% of portfolio
Stop price
$574.56
25% below $766.08
$ at risk
$500.00
1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

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