NASDAQ:HSIC: good value for what you're paying.

Our stock screening tool has pinpointed HENRY SCHEIN INC (NASDAQ:HSIC) as an undervalued stock. NASDAQ:HSIC maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

ChartMill's Evaluation of Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:HSIC has received a 7 out of 10:

• HSIC's Price/Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 86.73% of the companies in the same industry.
• When comparing the Price/Earnings ratio of HSIC to the average of the S&P500 Index (28.29), we can say HSIC is valued slightly cheaper.
• With a Price/Forward Earnings ratio of 11.21, the valuation of HSIC can be described as very reasonable.
• HSIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 88.50% of the companies in the same industry.
• HSIC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.99, which is the current average of the S&P500 Index.
• 74.34% of the companies in the same industry are more expensive than HSIC, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSIC indicates a rather cheap valuation: HSIC is cheaper than 81.42% of the companies listed in the same industry.
• HSIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of HSIC may justify a higher PE ratio.

A Closer Look at Profitability for NASDAQ:HSIC

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HSIC has achieved a 6:

• Looking at the Return On Assets, with a value of 3.82%, HSIC is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
• With an excellent Return On Equity value of 10.78%, HSIC belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
• The Return On Invested Capital of HSIC (6.31%) is better than 69.03% of its industry peers.
• HSIC has a Profit Margin of 3.12%. This is in the better half of the industry: HSIC outperforms 76.99% of its industry peers.
• Looking at the Operating Margin, with a value of 5.31%, HSIC is in the better half of the industry, outperforming 64.60% of the companies in the same industry.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HSIC has achieved a 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.94, HSIC is in the better half of the industry, outperforming 73.45% of the companies in the same industry.
• HSIC's Debt to FCF ratio of 5.12 is fine compared to the rest of the industry. HSIC outperforms 78.76% of its industry peers.
• Looking at the Current ratio, with a value of 1.75, HSIC is in the better half of the industry, outperforming 66.37% of the companies in the same industry.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:HSIC was assigned a score of 4 for growth:

• HSIC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.64% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of HSIC for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.