McKesson Corporation (MCK) — Free Cash Flow Yield
Healthcare
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products; delivers products to retail pharmacies, hospitals, long-term care centers, clinics, and institutions; and provides logistics and distribution services for manufacturers. It also provides consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies; gene therapy with InspiroGene, practice consulting, and vaccine distribution services; and technology solutions, as well as research, insights, technologies, and services to improve cancer and specialty care. In addition, the company helps in solving medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Further, it offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, patient enrollment, third-party logistics, and wholesale distribution support; medical-surgical supplies, laboratory equipment, pharmaceutical distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, and hospital reference labs, nursing homes, hospice and home health care agencies, government facilities ,and online marketplaces and retailers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.
| Metric | Value |
|---|---|
| FCF Yield | 5.3% |
| Healthcare Sector Avg FCF Yield | 4.9% |
| Annual Free Cash Flow | $5.4B |
| Market Cap | $101.3B |
| P/E Ratio | 23.3x |
McKesson Corporation's FCF yield of 5.3% is above the Healthcare sector average (4.9%).
Frequently Asked Questions
What is McKesson Corporation's (MCK) free cash flow yield?
McKesson Corporation's (MCK) free cash flow yield is 5.3%. That is above the Healthcare sector average (4.9%).
Is MCK's free cash flow yield good?
At 5.3%, MCK's free cash flow yield is considered fair — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does McKesson Corporation generate?
McKesson Corporation generated $5.4B in free cash flow, against a market cap of $101.3B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →