77.59 USD
+0.38 (+0.49%)
77.59 USD
0 (0%)
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. While HSIC is still in line with the averages on profitability rating, there are concerns on its financial health. HSIC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HSIC was profitable.
- In the past year HSIC had a positive cash flow from operations.
- HSIC had positive earnings in each of the past 5 years.
- HSIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HSIC has a better Return On Assets (3.52%) than 66.02% of its industry peers.
- The Return On Equity of HSIC (11.63%) is better than 75.73% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.64%, HSIC is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HSIC is in line with the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 11.63% | ||
| ROIC | 6.64% |
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
- HSIC's Profit Margin of 3.02% is fine compared to the rest of the industry. HSIC outperforms 66.99% of its industry peers.
- In the last couple of years the Profit Margin of HSIC has declined.
- HSIC has a better Operating Margin (5.94%) than 65.05% of its industry peers.
- HSIC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 31.19%, HSIC is in the better half of the industry, outperforming 60.19% 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 | 5.94% | ||
| PM (TTM) | 3.02% | ||
| GM | 31.19% |
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.
- 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 2.66 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of HSIC (2.66) is comparable to the rest of the industry.
- HSIC has a debt to FCF ratio of 8.70. This is a slightly negative value and a sign of low solvency as HSIC would need 8.70 years to pay back of all of its debts.
- The Debt to FCF ratio of HSIC (8.70) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.91 indicates that HSIC is somewhat dependend on debt financing.
- HSIC has a Debt to Equity ratio (0.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.77
WACC8.64%
2.3 Liquidity
- HSIC has a Current Ratio of 1.40. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
- HSIC has a Current ratio (1.40) which is comparable to the rest of the industry.
- A Quick Ratio of 0.79 indicates that HSIC may have some problems paying its short term obligations.
- HSIC has a worse Quick ratio (0.79) than 75.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.49% over the past year.
- The Earnings Per Share has been growing slightly by 6.19% on average over the past years.
- HSIC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.51%.
- The Revenue has been growing slightly by 4.88% on average over the past years.
EPS 1Y (TTM)14.49%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%13.11%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%5.2%
3.2 Future
- Based on estimates for the next years, HSIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.14% on average per year.
- HSIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y5.82%
EPS Next 2Y6.79%
EPS Next 3Y7.97%
EPS Next 5Y8.14%
Revenue Next Year2.46%
Revenue Next 2Y2.94%
Revenue Next 3Y3.22%
Revenue Next 5Y3.28%
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.
- 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
- Based on the Price/Earnings ratio of 16.10, the valuation of HSIC can be described as correct.
- Based on the Price/Earnings ratio, HSIC is valued cheaply inside the industry as 82.52% of the companies are valued more expensively.
- HSIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 14.36, HSIC is valued correctly.
- 82.52% of the companies in the same industry are more expensive than HSIC, based on the Price/Forward Earnings ratio.
- HSIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.36 |
4.2 Price Multiples
- 72.82% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.66 | ||
| EV/EBITDA | 10.41 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of HSIC may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)2.6
EPS Next 2Y6.79%
EPS Next 3Y7.97%
5. Dividend
5.1 Amount
- HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
HENRY SCHEIN INC / HSIC FAQ
What is the ChartMill fundamental rating of HENRY SCHEIN INC (HSIC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HSIC.
What is the valuation status of HENRY SCHEIN INC (HSIC) stock?
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 are the PE and PB ratios of HENRY SCHEIN INC (HSIC) stock?
The Price/Earnings (PE) ratio for HENRY SCHEIN INC (HSIC) is 16.1 and the Price/Book (PB) ratio is 2.72.
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 5.82% in the next year.