Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug distributor McKesson (NYSE: MCK) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at McKesson's business and see what CAPS investors are saying about the stock right now.

McKesson facts

Headquarters (Founded)

San Francisco (1833)

Market Cap

$19.99 billion


Health-care distributors

Trailing-12-Month Revenue

$109.87 billion


Chairman/CEO John Hammergren

CFO Jeffrey Campbell

Return on Equity (Average, Past 3 Years)



$3.21 billion / $4.06 billion

Dividend Yield



AmerisourceBergen (NYSE: ABC)

Cardinal Health (NYSE: CAH)

Cerner (Nasdaq: CERN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 578 members who have rated McKesson so far believe the stock will outperform the S&P 500 going forward. These bulls include waytosanjose and paradigms.

Just last month, waytosanjose listed several of McKesson's positives:

Wide moat, increasing dividend, low beta, understandable business. They're everywhere. Sounds like a Buffett pick.

Currently, McKesson even sports a cheapish EV/EBITDA of 8.6. That represents a slight discount to competitors AmerisourceBergen (9.3), Cardinal Health (9.3), and Cerner (18.6).

CAPS member paradigms elaborates on the bull case:

McKesson has been attracting a lot of attention recently and rightfully so: in the American Recovery and Reinvestment Act of 2009, $22 billion was pledged to modernize health care IT systems, and as the market leader in health care information technology [McKesson's] earnings growth potential looks, well, quite healthy.

But [McKesson] could have made a compelling case for inclusion in many portfolios even without the federal government's business. [McKesson] is a veritable giant ... it's the largest company (in revenue) of an oligopoly that effectively controls the pharmaceutical distribution industry.

Not only will aging Baby Boomers be using pharmaceuticals in the years ahead, they're likely to be going generic, since it's cheaper for their insurers to do so. But because generic drugs are apparently more profitable for pharmaceutical distributors (read: MCK) and since tens of billions of dollars of patented drug sales start facing competition from generics every year, [McKesson] looks like it's positioned for both increases in profits and revenues. ...

The right pieces seem to be in place for a continuation of [McKesson's] impressive growth.

What do you think about McKesson, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. McKesson is a Motley Fool Inside Value and Stock Advisor pick. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.