HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HSIC. HSIC was compared to 108 industry peers in the Health Care Providers & Services industry. HSIC has an average financial health and profitability rating. HSIC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years HSIC has been profitable.
Each year in the past 5 years HSIC had a positive operating cash flow.
1.2 Ratios
HSIC has a better Return On Assets (2.96%) than 70.09% of its industry peers.
With a decent Return On Equity value of 8.96%, HSIC is doing good in the industry, outperforming 73.83% of the companies in the same industry.
HSIC has a better Return On Invested Capital (5.64%) than 65.42% 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 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 8.96% | ||
| ROIC | 5.64% |
ROA(3y)5.88%
ROA(5y)6.51%
ROE(3y)15.14%
ROE(5y)16.13%
ROIC(3y)9.29%
ROIC(5y)9.35%
1.3 Margins
Looking at the Profit Margin, with a value of 2.51%, HSIC is in the better half of the industry, outperforming 70.09% of the companies in the same industry.
In the last couple of years the Profit Margin of HSIC has declined.
HSIC's Operating Margin of 4.86% is fine compared to the rest of the industry. HSIC outperforms 61.68% of its industry peers.
HSIC's Operating Margin has declined in the last couple of years.
The Gross Margin of HSIC (31.59%) is comparable to the rest of the 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 | 4.86% | ||
| PM (TTM) | 2.51% | ||
| GM | 31.59% |
OM growth 3Y1.22%
OM growth 5Y-4.64%
PM growth 3Y-5.48%
PM growth 5Y-9.94%
GM growth 3Y4.01%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HSIC is still creating some 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
An Altman-Z score of 2.82 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.82, HSIC is doing good in the industry, outperforming 62.62% of the companies in the same industry.
HSIC has a debt to FCF ratio of 6.79. This is a slightly negative value and a sign of low solvency as HSIC would need 6.79 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.79, HSIC is doing good in the industry, outperforming 69.16% of the companies in the same industry.
HSIC has a Debt/Equity ratio of 0.73. This is a neutral value indicating HSIC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, HSIC perfoms like the industry average, outperforming 44.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.79 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.68
WACC8.31%
2.3 Liquidity
HSIC has a Current Ratio of 1.42. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HSIC (1.42) is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that HSIC may have some problems paying its short term obligations.
HSIC has a Quick ratio of 0.82. This is in the lower half of the industry: HSIC underperforms 76.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
HSIC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.63%.
The Earnings Per Share has been growing slightly by 1.68% on average over the past years.
The Revenue has decreased by -1.53% in the past year.
Measured over the past years, HSIC shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)-16.63%
EPS 3Y14.86%
EPS 5Y1.68%
EPS Q2Q%-7.58%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y6.84%
Revenue growth 5Y5.55%
Sales Q2Q%0.38%
3.2 Future
HSIC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.81% yearly.
Based on estimates for the next years, HSIC will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y7.88%
EPS Next 2Y6.79%
EPS Next 3Y7.31%
EPS Next 5Y8.81%
Revenue Next Year3.51%
Revenue Next 2Y3.5%
Revenue Next 3Y3.62%
Revenue Next 5Y3.96%
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
A Price/Earnings ratio of 18.35 indicates a rather expensive valuation of HSIC.
Compared to the rest of the industry, the Price/Earnings ratio of HSIC indicates a somewhat cheap valuation: HSIC is cheaper than 71.96% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. HSIC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.05 indicates a correct valuation of HSIC.
74.77% of the companies in the same industry are more expensive than HSIC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HSIC to the average of the S&P500 Index (22.68), we can say HSIC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.05 |
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 63.55% of the companies listed in the same industry.
70.09% of the companies in the same industry are more expensive than HSIC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | 12.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HSIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)10.91
EPS Next 2Y6.79%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
No dividends for HSIC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
77.24
-0.81 (-1.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.26%
Inst Owner Change-3.41%
Ins Owners0.89%
Ins Owner Change-1.73%
Market Cap9.59B
Analysts75.24
Price Target81.43 (5.42%)
Short Float %4.7%
Short Ratio4.06
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)0.73%
Min EPS beat(2)-1.06%
Max EPS beat(2)2.52%
EPS beat(4)2
Avg EPS beat(4)0.26%
Min EPS beat(4)-6.72%
Max EPS beat(4)6.28%
EPS beat(8)3
Avg EPS beat(8)-0.71%
EPS beat(12)5
Avg EPS beat(12)0.78%
EPS beat(16)8
Avg EPS beat(16)4.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.85%
Min Revenue beat(2)-5.88%
Max Revenue beat(2)-3.82%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)1
Avg Revenue beat(12)-2.72%
Revenue beat(16)5
Avg Revenue beat(16)-1.02%
PT rev (1m)2.2%
PT rev (3m)3.12%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-1.84%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.05 | ||
| P/S | 0.77 | ||
| P/FCF | 24.53 | ||
| P/OCF | 15.67 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.91 |
EPS(TTM)4.21
EY5.45%
EPS(NY)5.13
Fwd EY6.64%
FCF(TTM)3.15
FCFY4.08%
OCF(TTM)4.93
OCFY6.38%
SpS100.66
BVpS28.21
TBVpS-12.75
PEG (NY)2.33
PEG (5Y)10.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 8.96% | ||
| ROCE | 7.92% | ||
| ROIC | 5.64% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 15.12% | ||
| OM | 4.86% | ||
| PM (TTM) | 2.51% | ||
| GM | 31.59% | ||
| FCFM | 3.13% |
ROA(3y)5.88%
ROA(5y)6.51%
ROE(3y)15.14%
ROE(5y)16.13%
ROIC(3y)9.29%
ROIC(5y)9.35%
ROICexc(3y)9.48%
ROICexc(5y)9.63%
ROICexgc(3y)22.14%
ROICexgc(5y)23.01%
ROCE(3y)12.26%
ROCE(5y)12.29%
ROICexcg growth 3Y-5.09%
ROICexcg growth 5Y3.78%
ROICexc growth 3Y-6.61%
ROICexc growth 5Y-4.38%
OM growth 3Y1.22%
OM growth 5Y-4.64%
PM growth 3Y-5.48%
PM growth 5Y-9.94%
GM growth 3Y4.01%
GM growth 5Y0.25%
F-Score6
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.79 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 76.47% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 68.23% | ||
| Profit Quality | 124.52% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.82 |
F-Score6
WACC8.31%
ROIC/WACC0.68
Cap/Depr(3y)52.8%
Cap/Depr(5y)45.18%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.83%
Profit Quality(3y)89.74%
Profit Quality(5y)98.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-16.63%
EPS 3Y14.86%
EPS 5Y1.68%
EPS Q2Q%-7.58%
EPS Next Y7.88%
EPS Next 2Y6.79%
EPS Next 3Y7.31%
EPS Next 5Y8.81%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y6.84%
Revenue growth 5Y5.55%
Sales Q2Q%0.38%
Revenue Next Year3.51%
Revenue Next 2Y3.5%
Revenue Next 3Y3.62%
Revenue Next 5Y3.96%
EBIT growth 1Y-27.01%
EBIT growth 3Y8.14%
EBIT growth 5Y0.65%
EBIT Next Year19.6%
EBIT Next 3Y10.46%
EBIT Next 5Y8.25%
FCF growth 1Y-25.86%
FCF growth 3Y-17.14%
FCF growth 5Y-12.49%
OCF growth 1Y-2.03%
OCF growth 3Y-5.84%
OCF growth 5Y-6%