HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock - Currency: USD
Taking everything into account, HSIC scores 4 out of 10 in our fundamental rating. HSIC was compared to 103 industry peers in the Health Care Providers & Services industry. HSIC has an average financial health and profitability rating. HSIC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HSIC had positive earnings in the past year.
HSIC had a positive operating cash flow in the past year.
In the past 5 years HSIC has always been profitable.
Each year in the past 5 years HSIC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HSIC (3.88%) is better than 71.84% of its industry peers.
HSIC's Return On Equity of 12.30% is fine compared to the rest of the industry. HSIC outperforms 76.70% of its industry peers.
The Return On Invested Capital of HSIC (7.05%) is better than 68.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HSIC is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.3% | ||
| ROIC | 7.05% |
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
The Profit Margin of HSIC (3.21%) is better than 66.02% of its industry peers.
HSIC's Profit Margin has declined in the last couple of years.
HSIC has a Operating Margin of 6.13%. This is in the better half of the industry: HSIC outperforms 65.05% of its industry peers.
In the last couple of years the Operating Margin of HSIC has declined.
Looking at the Gross Margin, with a value of 31.60%, HSIC is in line with its industry, outperforming 56.31% of the companies in the same industry.
In the last couple of years the Gross Margin of HSIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 3.21% | ||
| GM | 31.6% |
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.
The number of shares outstanding for HSIC has been reduced compared to 1 year ago.
Compared to 5 years ago, HSIC has less shares outstanding
The debt/assets ratio for HSIC is higher compared to a year ago.
2.2 Solvency
HSIC has an Altman-Z score of 2.85. This is not the best score and indicates that HSIC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.85, HSIC is doing good in the industry, outperforming 62.14% of the companies in the same industry.
The Debt to FCF ratio of HSIC is 5.69, which is a neutral value as it means it would take HSIC, 5.69 years of fcf income to pay off all of its debts.
HSIC has a Debt to FCF ratio of 5.69. This is in the better half of the industry: HSIC outperforms 61.16% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that HSIC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, HSIC perfoms like the industry average, outperforming 41.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.88
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.38 indicates that HSIC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, HSIC perfoms like the industry average, outperforming 43.69% of the companies in the same industry.
HSIC has a Quick Ratio of 1.38. This is a bad value and indicates that HSIC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HSIC (0.75) is worse than 78.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
HSIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.11%, which is quite good.
HSIC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
Looking at the last year, HSIC shows a small growth in Revenue. The Revenue has grown by 1.75% in the last year.
Measured over the past years, HSIC shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
EPS 1Y (TTM)9.11%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%4.55%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%-0.13%
3.2 Future
Based on estimates for the next years, HSIC will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
HSIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y4.92%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.69%
Revenue Next Year1.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
Revenue Next 5Y3.67%
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.33, HSIC is valued correctly.
77.67% of the companies in the same industry are more expensive than HSIC, based on the Price/Earnings ratio.
HSIC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
HSIC is valuated correctly with a Price/Forward Earnings ratio of 13.64.
HSIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 77.67% of the companies in the same industry.
HSIC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSIC indicates a somewhat cheap valuation: HSIC is cheaper than 66.99% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HSIC is valued a bit cheaper than 66.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 10.44 |
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.
The decent profitability rating of HSIC may justify a higher PE ratio.
PEG (NY)3.11
PEG (5Y)2.48
EPS Next 2Y6.57%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
No dividends for HSIC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.42
-1.11 (-1.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.25%
Inst Owner Change0.12%
Ins Owners0.74%
Ins Owner Change6.34%
Market Cap9.18B
Analysts73.91
Price Target77.59 (5.68%)
Short Float %7.4%
Short Ratio5.1
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)-0.87%
Min EPS beat(2)-3.32%
Max EPS beat(2)1.57%
EPS beat(4)2
Avg EPS beat(4)-0.07%
Min EPS beat(4)-3.32%
Max EPS beat(4)2.52%
EPS beat(8)4
Avg EPS beat(8)-0.25%
EPS beat(12)4
Avg EPS beat(12)-1.28%
EPS beat(16)8
Avg EPS beat(16)2.07%
Revenue beat(2)0
Avg Revenue beat(2)-4.41%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.63%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-3.77%
Revenue beat(8)0
Avg Revenue beat(8)-3.82%
Revenue beat(12)0
Avg Revenue beat(12)-3.76%
Revenue beat(16)3
Avg Revenue beat(16)-2.16%
PT rev (1m)-0.95%
PT rev (3m)-4.11%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 13.64 | ||
| P/S | 0.72 | ||
| P/FCF | 18.07 | ||
| P/OCF | 13.34 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.44 |
EPS(TTM)4.79
EY6.52%
EPS(NY)5.38
Fwd EY7.33%
FCF(TTM)4.06
FCFY5.54%
OCF(TTM)5.5
OCFY7.5%
SpS101.35
BVpS26.48
TBVpS-13.39
PEG (NY)3.11
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.3% | ||
| ROCE | 10.27% | ||
| ROIC | 7.05% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 17.9% | ||
| OM | 6.13% | ||
| PM (TTM) | 3.21% | ||
| GM | 31.6% | ||
| FCFM | 4.01% |
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%
ROICexcg growth 3Y-9.94%
ROICexcg 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-Score7
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 60.61% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 5.63 | ||
| Cash Conversion | 64.06% | ||
| Profit Quality | 124.82% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.85 |
F-Score7
WACC8.02%
ROIC/WACC0.88
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)9.11%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%4.55%
EPS Next Y4.92%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.69%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%-0.13%
Revenue Next Year1.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
Revenue Next 5Y3.67%
EBIT growth 1Y17.55%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year16.31%
EBIT Next 3Y8.77%
EBIT Next 5YN/A
FCF growth 1Y18.69%
FCF growth 3Y1.58%
FCF growth 5Y1.99%
OCF growth 1Y28.36%
OCF growth 3Y6.12%
OCF growth 5Y4.66%