HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock
Taking everything into account, HSIC scores 4 out of 10 in our fundamental rating. HSIC was compared to 108 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of HSIC get a neutral evaluation. Nothing too spectacular is happening here. 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
In the past year HSIC was profitable.
In the past year HSIC had a positive cash flow from operations.
Each year in the past 5 years HSIC has been profitable.
HSIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HSIC has a better Return On Assets (2.96%) than 71.03% of its industry peers.
Looking at the Return On Equity, with a value of 8.96%, HSIC is in the better half of the industry, outperforming 75.70% 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 8.27%.
| 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
HSIC has a better Profit Margin (2.51%) than 70.09% of its industry peers.
HSIC's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.86%, HSIC is doing good in the industry, outperforming 62.62% of the companies in the same industry.
In the last couple of years the Operating Margin of HSIC has declined.
With a Gross Margin value of 31.59%, HSIC perfoms like the industry average, outperforming 57.01% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HSIC is creating some 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.
Compared to 1 year ago, HSIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.78 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HSIC (2.78) is better than 64.49% of its industry peers.
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.
The Debt to Equity ratio of HSIC (0.73) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 6.79 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.67
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.42 indicates that HSIC should not have too much problems paying its short term obligations.
HSIC's Current ratio of 1.42 is in line compared to the rest of the industry. HSIC outperforms 47.66% of its industry peers.
A Quick Ratio of 0.82 indicates that HSIC may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, HSIC is not doing good in the industry: 74.77% of the companies in the same industry are doing better.
| 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%.
Measured over the past 5 years, HSIC shows a small growth in Earnings Per Share. The EPS has been growing by 1.68% on average per year.
HSIC shows a decrease in Revenue. In the last year, the revenue decreased by -1.53%.
HSIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
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
The Earnings Per Share is expected to grow by 8.81% on average over the next years. This is quite good.
HSIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y8.22%
EPS Next 2Y8.42%
EPS Next 3Y8.7%
EPS Next 5Y8.81%
Revenue Next Year3.78%
Revenue Next 2Y3.74%
Revenue Next 3Y3.83%
Revenue Next 5Y3.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.62, HSIC is valued on the expensive side.
75.70% of the companies in the same industry are more expensive than HSIC, based on the Price/Earnings ratio.
HSIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
HSIC is valuated correctly with a Price/Forward Earnings ratio of 14.02.
HSIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 79.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. HSIC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 14.02 |
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 65.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HSIC is valued a bit cheaper than the industry average as 71.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 12.42 |
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)2.14
PEG (5Y)10.48
EPS Next 2Y8.42%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HENRY SCHEIN INC
NASDAQ:HSIC (1/21/2025, 8:06:05 PM)
After market: 74.24 +0.05 (+0.07%)74.19
+0.97 (+1.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners101.67%
Inst Owner Change-2.18%
Ins Owners0.88%
Ins Owner Change-1.89%
Market Cap9.25B
Analysts71.43
Price Target75.85 (2.24%)
Short Float %5.64%
Short Ratio4.32
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)0.09%
PT rev (3m)2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.54%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 14.02 | ||
| P/S | 0.74 | ||
| P/FCF | 23.66 | ||
| P/OCF | 15.11 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)4.21
EY5.67%
EPS(NY)5.29
Fwd EY7.13%
FCF(TTM)3.14
FCFY4.23%
OCF(TTM)4.91
OCFY6.62%
SpS100.25
BVpS28.1
TBVpS-12.7
PEG (NY)2.14
PEG (5Y)10.48
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 | 2.78 |
F-Score6
WACC8.37%
ROIC/WACC0.67
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 Y8.22%
EPS Next 2Y8.42%
EPS Next 3Y8.7%
EPS Next 5Y8.81%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y6.84%
Revenue growth 5Y5.55%
Sales Q2Q%0.38%
Revenue Next Year3.78%
Revenue Next 2Y3.74%
Revenue Next 3Y3.83%
Revenue Next 5Y3.96%
EBIT growth 1Y-27.01%
EBIT growth 3Y8.14%
EBIT growth 5Y0.65%
EBIT Next Year20.15%
EBIT Next 3Y11.11%
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%