HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
68.55 USD
+1.18 (+1.75%)
68.55 USD
0 (0%)
Overall HSIC gets a fundamental rating of 4 out of 10. We evaluated HSIC against 101 industry peers in the Health Care Providers & Services industry. HSIC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
The Return On Assets of HSIC (3.57%) is better than 69.31% of its industry peers.
HSIC's Return On Equity of 11.29% is fine compared to the rest of the industry. HSIC outperforms 76.24% of its industry peers.
With a decent Return On Invested Capital value of 6.75%, HSIC is doing good in the industry, outperforming 69.31% 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 9.19%.
| 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
HSIC has a better Profit Margin (3.05%) than 66.34% of its industry peers.
HSIC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.08%, HSIC is doing good in the industry, outperforming 63.37% of the companies in the same industry.
HSIC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.33%, HSIC is in line with its industry, outperforming 58.42% of the companies in the same 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.
Compared to 1 year ago, HSIC has less shares outstanding
The number of shares outstanding for HSIC has been reduced compared to 5 years ago.
The debt/assets ratio for HSIC is higher compared to a year ago.
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.
HSIC has a Altman-Z score of 2.66. This is comparable to the rest of the industry: HSIC outperforms 58.42% 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.
With a Debt to FCF ratio value of 9.04, HSIC perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
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 of 0.87. This is comparable to the rest of the industry: HSIC outperforms 40.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.8
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.41 indicates that HSIC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, HSIC is in line with its industry, outperforming 44.55% of the companies in the same industry.
HSIC has a Quick Ratio of 1.41. 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 (0.78) is worse than 78.22% of its industry peers.
| 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 8.12%, 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 2.29% 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)8.12%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%-10.57%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
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 7.78% on average per year.
Based on estimates for the next years, HSIC will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y3.82%
EPS Next 2Y6.1%
EPS Next 3Y6.83%
EPS Next 5Y7.78%
Revenue Next Year1.76%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
Revenue Next 5Y3.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 14.71, the valuation of HSIC can be described as correct.
Based on the Price/Earnings ratio, HSIC is valued cheaply inside the industry as 81.19% of the companies are valued more expensively.
HSIC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.85, which indicates a correct valuation of HSIC.
Based on the Price/Forward Earnings ratio, HSIC is valued cheaper than 81.19% of the companies in the same industry.
HSIC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSIC is valued a bit cheaper than 74.26% of the companies in the same industry.
HSIC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.89 | ||
| EV/EBITDA | 9.56 |
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)3.85
PEG (5Y)2.38
EPS Next 2Y6.1%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.55
+1.18 (+1.75%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change5.04%
Ins Owners0.75%
Ins Owner Change-0.55%
Market Cap8.31B
Analysts71.3
Price Target74.93 (9.31%)
Short Float %8.39%
Short Ratio4.8
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)-3.05%
PT rev (3m)-3.49%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.85 | ||
| P/S | 0.65 | ||
| P/FCF | 24.89 | ||
| P/OCF | 16.24 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.56 |
EPS(TTM)4.66
EY6.8%
EPS(NY)5.34
Fwd EY7.78%
FCF(TTM)2.75
FCFY4.02%
OCF(TTM)4.22
OCFY6.16%
SpS105.33
BVpS28.41
TBVpS-13.86
PEG (NY)3.85
PEG (5Y)2.38
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%
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-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 | 2.66 |
F-Score5
WACC8.41%
ROIC/WACC0.8
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)8.12%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%-10.57%
EPS Next Y3.82%
EPS Next 2Y6.1%
EPS Next 3Y6.83%
EPS Next 5Y7.78%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
Revenue Next Year1.76%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
Revenue Next 5Y3.67%
EBIT growth 1Y25.93%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year16%
EBIT Next 3Y8.74%
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%