What changed
$MCK — HOLD 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $96.3B | EPS $11.69 vs $11.57 🟢
💡 Consensus expects low- to mid-single-digit EPS growth driven by specialty drug volumes and share buybacks. The market has likely priced in a 10–12x FCF multiple, which is fair given the revenue miss and flat diluted share count.
📉 Reward/risk: 1.1:1
🏢 Business Quality: 7/10 - Dominant scale in pharmaceutical distribution with sticky provider relationships, high FCF conversion, and a track record of reliable execution, but low margins and regulatory exposure limit upside.
📊 Valuation: fair - Trailing P/E 18.0x (FY2026E EPS $44.26), forward P/E ~16.6x (FY2027E EPS ~$47.8), FCF yield ~8%, in line with peer group (ABC, CAH) and...
🔮 Catalyst: No imminent catalyst; next quarterly report (Q1 FY2027) expected in late July 2026, beyond the 3-month window.
📊 Our read: HOLD. Full analysis →
https://stockduty.xyz/s/MCK0611