HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
71.9 USD
+1.84 (+2.63%)
71.9 USD
0 (0%)
HSIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 industry peers in the Health Care Providers & Services industry. While HSIC is still in line with the averages on profitability rating, there are concerns on its financial health. HSIC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSIC was profitable.
HSIC had a positive operating cash flow in the past year.
In the past 5 years HSIC has always been profitable.
HSIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, HSIC is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
With a decent Return On Equity value of 11.29%, HSIC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HSIC has a Return On Invested Capital of 6.75%. This is in the better half of the industry: HSIC outperforms 67.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSIC is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 11.29% | ||
| ROIC | 6.75% |
ROA(3y)4.67%
ROA(5y)5.33%
ROE(3y)12.83%
ROE(5y)13.8%
ROIC(3y)8.02%
ROIC(5y)8.48%
1.3 Margins
With a decent Profit Margin value of 3.05%, HSIC is doing good in the industry, outperforming 66.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HSIC has declined.
Looking at the Operating Margin, with a value of 6.08%, HSIC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
HSIC's Operating Margin has declined in the last couple of years.
HSIC has a Gross Margin (31.33%) which is comparable to the rest of the industry.
HSIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 3.05% | ||
| GM | 31.33% |
OM growth 3Y-5.7%
OM growth 5Y-4.55%
PM growth 3Y-15.43%
PM growth 5Y-15.06%
GM growth 3Y2.29%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSIC is destroying value.
HSIC has less shares outstanding than it did 1 year ago.
HSIC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HSIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.67 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
HSIC has a Altman-Z score of 2.67. This is comparable to the rest of the industry: HSIC outperforms 58.00% of its industry peers.
HSIC has a debt to FCF ratio of 9.04. This is a negative value and a sign of low solvency as HSIC would need 9.04 years to pay back of all of its debts.
HSIC has a Debt to FCF ratio (9.04) which is in line with its industry peers.
HSIC has a Debt/Equity ratio of 0.87. This is a neutral value indicating HSIC is somewhat dependend on debt financing.
HSIC has a Debt to Equity ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.76
WACC8.85%
2.3 Liquidity
HSIC has a Current Ratio of 1.41. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.41, HSIC perfoms like the industry average, outperforming 47.00% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that HSIC may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, HSIC is not doing good in the industry: 77.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
HSIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.49%, which is quite good.
Measured over the past 5 years, HSIC shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
Looking at the last year, HSIC shows a small growth in Revenue. The Revenue has grown by 2.71% in the last year.
HSIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.88% yearly.
EPS 1Y (TTM)14.49%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%13.11%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%5.2%
3.2 Future
The Earnings Per Share is expected to grow by 7.39% on average over the next years.
Based on estimates for the next years, HSIC will show a small growth in Revenue. The Revenue will grow by 3.05% on average per year.
EPS Next Y3.76%
EPS Next 2Y5.94%
EPS Next 3Y7.19%
EPS Next 5Y7.39%
Revenue Next Year1.74%
Revenue Next 2Y2.59%
Revenue Next 3Y2.89%
Revenue Next 5Y3.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.92, HSIC is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HSIC indicates a rather cheap valuation: HSIC is cheaper than 82.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, HSIC is valued a bit cheaper.
HSIC is valuated correctly with a Price/Forward Earnings ratio of 13.51.
Based on the Price/Forward Earnings ratio, HSIC is valued a bit cheaper than 79.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, HSIC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.51 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than HSIC, based on the Enterprise Value to EBITDA ratio.
HSIC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.11 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HSIC does not grow enough to justify the current Price/Earnings ratio.
HSIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.96
PEG (5Y)2.41
EPS Next 2Y5.94%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.9
+1.84 (+2.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change-0.38%
Ins Owners0.77%
Ins Owner Change-0.21%
Market Cap8.72B
Revenue(TTM)12.67B
Net Income(TTM)389.00M
Analysts69.57
Price Target74.88 (4.14%)
Short Float %8.6%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.98%
Min EPS beat(2)-9.54%
Max EPS beat(2)1.57%
EPS beat(4)2
Avg EPS beat(4)-2.19%
Min EPS beat(4)-9.54%
Max EPS beat(4)2.52%
EPS beat(8)3
Avg EPS beat(8)-1.5%
EPS beat(12)4
Avg EPS beat(12)-1.91%
EPS beat(16)7
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.6%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.43%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)0
Avg Revenue beat(12)-3.48%
Revenue beat(16)2
Avg Revenue beat(16)-2.33%
PT rev (1m)-0.06%
PT rev (3m)-3.01%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.51 | ||
| P/S | 0.68 | ||
| P/FCF | 26.11 | ||
| P/OCF | 17.03 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.73 |
EPS(TTM)4.82
EY6.7%
EPS(NY)5.32
Fwd EY7.4%
FCF(TTM)2.75
FCFY3.83%
OCF(TTM)4.22
OCFY5.87%
SpS105.33
BVpS28.41
TBVpS-13.86
PEG (NY)3.96
PEG (5Y)2.41
Graham Number55.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 11.29% | ||
| ROCE | 9.84% | ||
| ROIC | 6.75% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 16.83% | ||
| OM | 6.08% | ||
| PM (TTM) | 3.05% | ||
| GM | 31.33% | ||
| FCFM | 2.61% |
ROA(3y)4.67%
ROA(5y)5.33%
ROE(3y)12.83%
ROE(5y)13.8%
ROIC(3y)8.02%
ROIC(5y)8.48%
ROICexc(3y)8.17%
ROICexc(5y)8.74%
ROICexgc(3y)19.66%
ROICexgc(5y)20.9%
ROCE(3y)10.93%
ROCE(5y)11.41%
ROICexgc growth 3Y-9.94%
ROICexgc growth 5Y-7.93%
ROICexc growth 3Y-12.98%
ROICexc growth 5Y-8.63%
OM growth 3Y-5.7%
OM growth 5Y-4.55%
PM growth 3Y-15.43%
PM growth 5Y-15.06%
GM growth 3Y2.29%
GM growth 5Y0.47%
F-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 59.53% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 5.4 | ||
| Cash Conversion | 47.58% | ||
| Profit Quality | 85.86% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.67 |
F-Score5
WACC8.85%
ROIC/WACC0.76
Cap/Depr(3y)61.22%
Cap/Depr(5y)49.53%
Cap/Sales(3y)1.25%
Cap/Sales(5y)0.97%
Profit Quality(3y)112.93%
Profit Quality(5y)114.98%
High Growth Momentum
Growth
EPS 1Y (TTM)14.49%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%13.11%
EPS Next Y3.76%
EPS Next 2Y5.94%
EPS Next 3Y7.19%
EPS Next 5Y7.39%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%5.2%
Revenue Next Year1.74%
Revenue Next 2Y2.59%
Revenue Next 3Y2.89%
Revenue Next 5Y3.05%
EBIT growth 1Y25.93%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year14.87%
EBIT Next 3Y8.36%
EBIT Next 5YN/A
FCF growth 1Y-37.22%
FCF growth 3Y1.58%
FCF growth 5Y1.99%
OCF growth 1Y-21.59%
OCF growth 3Y6.12%
OCF growth 5Y4.66%
HENRY SCHEIN INC / HSIC FAQ
Can you provide the ChartMill fundamental rating for HENRY SCHEIN INC?
ChartMill assigns a fundamental rating of 4 / 10 to HSIC.
Can you provide the valuation status for HENRY SCHEIN INC?
ChartMill assigns a valuation rating of 5 / 10 to HENRY SCHEIN INC (HSIC). This can be considered as Fairly Valued.
Can you provide the profitability details for HENRY SCHEIN INC?
HENRY SCHEIN INC (HSIC) has a profitability rating of 6 / 10.
What is the earnings growth outlook for HENRY SCHEIN INC?
The Earnings per Share (EPS) of HENRY SCHEIN INC (HSIC) is expected to grow by 3.76% in the next year.