HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
63.59 USD
+0.08 (+0.13%)
63.59 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HSIC. HSIC was compared to 101 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of HSIC while its profitability can be described as average. 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.
In the past 5 years HSIC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HSIC (3.57%) is better than 68.32% of its industry peers.
HSIC has a Return On Equity of 11.29%. This is in the better half of the industry: HSIC outperforms 75.25% of its industry peers.
The Return On Invested Capital of HSIC (6.75%) is better than 68.32% of its industry peers.
HSIC had an Average Return On Invested Capital over the past 3 years of 8.02%. This is in line with the industry average of 9.34%.
| 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
The Profit Margin of HSIC (3.05%) is better than 66.34% of its industry peers.
In the last couple of years the Profit Margin of HSIC has declined.
Looking at the Operating Margin, with a value of 6.08%, HSIC is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
In the last couple of years the Operating Margin of HSIC has declined.
HSIC's Gross Margin of 31.33% is in line compared to the rest of the industry. HSIC outperforms 57.43% of its industry peers.
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
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 2.61 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
HSIC's Altman-Z score of 2.61 is in line compared to the rest of the industry. HSIC outperforms 54.46% 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.
Looking at the Debt to FCF ratio, with a value of 9.04, HSIC is in line with its industry, outperforming 51.49% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that HSIC is somewhat dependend on debt financing.
HSIC has a Debt to Equity ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.84
WACC8.05%
2.3 Liquidity
HSIC has a Current Ratio of 1.41. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.41, HSIC perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that HSIC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, HSIC is doing worse than 78.22% of the companies in the same industry.
| 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.
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 2.29%.
HSIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.88% yearly.
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 Y3.78%
EPS Next 2Y5.95%
EPS Next 3Y6.77%
EPS Next 5Y7.78%
Revenue Next Year1.76%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
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.
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
HSIC is valuated correctly with a Price/Earnings ratio of 13.65.
Based on the Price/Earnings ratio, HSIC is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
HSIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.67.
A Price/Forward Earnings ratio of 11.95 indicates a reasonable valuation of HSIC.
HSIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 83.17% of the companies in the same industry.
HSIC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.95 |
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 78.22% of the companies listed in the same industry.
61.39% 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 | 23.09 | ||
| EV/EBITDA | 9 |
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)3.61
PEG (5Y)2.2
EPS Next 2Y5.95%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.59
+0.08 (+0.13%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change0.05%
Ins Owners0.77%
Ins Owner Change-0.21%
Market Cap7.71B
Revenue(TTM)12.77B
Net Income(TTM)389.00M
Analysts71.3
Price Target74.93 (17.83%)
Short Float %9.01%
Short Ratio5.23
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)0%
PT rev (3m)-2.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.65 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.6 | ||
| P/FCF | 23.09 | ||
| P/OCF | 15.06 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9 |
EPS(TTM)4.66
EY7.33%
EPS(NY)5.32
Fwd EY8.37%
FCF(TTM)2.75
FCFY4.33%
OCF(TTM)4.22
OCFY6.64%
SpS105.33
BVpS28.41
TBVpS-13.86
PEG (NY)3.61
PEG (5Y)2.2
Graham Number54.58
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%
ROICexgc growth 3Y-9.94%
ROICexgc 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 | 2.61 |
F-Score5
WACC8.05%
ROIC/WACC0.84
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 Y3.78%
EPS Next 2Y5.95%
EPS Next 3Y6.77%
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 Year14.87%
EBIT Next 3Y8.36%
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%