MCK
McKesson Corporation
Dividend / Cash flow
★ Quality 83/100Price today
$907.99
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
A monopoly position
This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.
What this business is made of
The business
McKesson is the artery every box of medicine in North America passes through.
McKesson distributes drugs. It buys pharmaceuticals from manufacturers and delivers them to pharmacies, hospitals, and clinics across North America. It moves $403B in revenue with barely a 4% gross margin — it earns on volume, not margin, pocketing a fraction of every box that passes through.
It's one of three distributors that control 90% of the U.S. market. Replicating its logistics network, its manufacturer contracts, and its scale would take decades and billions. The margin is so thin that no newcomer wants to enter — and that's precisely the barrier.
Revenue history
From $263.9B to $403.4B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $403.4B · FY2026
Of every $100 in sales, $99 goes to costs and operations; $1 is left as net profit (1% margin).
Catalysts and risks
Oncology segment (US Oncology Network) growing double digits, with a higher margin than base distribution.
Aggressive buybacks: the company reduces shares year after year, pushing FCF per share toward $47.
FY2026 closed at $403.4B in revenue, +12% year-over-year, with FCF of $5.7B fueling the dividend and buybacks.
4% gross margin: any logistics disruption or regulatory pressure on prices hits hard.
Opioid litigation still weighs on cash flow with settlement payments stretching out over years.
Customer concentration: losing a big contract (CVS, a chain) moves the needle.
Charlie's note
“Paying 22x for a 4%-margin business growing at 11% requires that the logistics machine stays untouchable; the moat of the big three justifies it, but only if you have the patience not to overpay for the privilege.”
Analysis · June 2026
Want to follow McKesson Corporation?
We do not calculate a value here: McKesson Corporation does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.