HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
71.43 USD
-1.91 (-2.6%)
71.43 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HSIC. HSIC was compared to 100 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 has a correct valuation and a medium 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.
Each year in the past 5 years HSIC has been profitable.
In the past 5 years HSIC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HSIC (3.52%) is better than 67.00% of its industry peers.
Looking at the Return On Equity, with a value of 11.63%, HSIC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
HSIC's Return On Invested Capital of 6.64% is fine compared to the rest of the industry. HSIC outperforms 66.00% 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 9.45%.
| 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 has a Profit Margin of 3.02%. This is in the better half of the industry: HSIC outperforms 66.00% 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 5.94%, HSIC is in the better half of the industry, outperforming 62.00% 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 31.19% is in line compared to the rest of the industry. HSIC outperforms 57.00% of its industry peers.
HSIC's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, HSIC has less shares outstanding
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
HSIC has an Altman-Z score of 2.63. This is not the best score and indicates that HSIC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.63, HSIC is in line with its industry, outperforming 58.00% of the companies in the same industry.
The Debt to FCF ratio of HSIC is 8.70, which is on the high side as it means it would take HSIC, 8.70 years of fcf income to pay off all of its debts.
HSIC has a Debt to FCF ratio (8.70) which is comparable to the rest of the industry.
HSIC has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 | 2.63 |
ROIC/WACC0.75
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.40 indicates that HSIC should not have too much problems paying its short term obligations.
HSIC has a Current ratio of 1.40. This is comparable to the rest of the industry: HSIC outperforms 47.00% of its industry peers.
A Quick Ratio of 0.79 indicates that HSIC may have some problems paying its short term obligations.
The Quick ratio of HSIC (0.79) is worse than 77.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
HSIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.49%, which is quite good.
Measured over the past 5 years, HSIC shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
Looking at the last year, HSIC shows a small growth in Revenue. The Revenue has grown by 3.51% in the last year.
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 small growth in Earnings Per Share. The EPS will grow by 7.39% on average per year.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y3.76%
EPS Next 2Y5.94%
EPS Next 3Y7.19%
EPS Next 5Y7.39%
Revenue Next Year1.74%
Revenue Next 2Y2.59%
Revenue Next 3Y2.89%
Revenue Next 5Y3.05%
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 stable.
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 14.82, the valuation of HSIC can be described as correct.
Based on the Price/Earnings ratio, HSIC is valued cheaply inside the industry as 81.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HSIC to the average of the S&P500 Index (25.89), we can say HSIC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.43, HSIC is valued correctly.
HSIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 78.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. HSIC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 13.43 |
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 72.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HSIC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.33 | ||
| EV/EBITDA | 9.97 |
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)3.94
PEG (5Y)2.39
EPS Next 2Y5.94%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.43
-1.91 (-2.6%)
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 Change-1.56%
Ins Owners0.77%
Ins Owner Change-0.16%
Market Cap8.66B
Revenue(TTM)12.94B
Net Income(TTM)391.00M
Analysts69.57
Price Target74.88 (4.83%)
Short Float %8.6%
Short Ratio5.96
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)-1.88%
Min EPS beat(2)-9.54%
Max EPS beat(2)5.78%
EPS beat(4)2
Avg EPS beat(4)-1.38%
Min EPS beat(4)-9.54%
Max EPS beat(4)5.78%
EPS beat(8)4
Avg EPS beat(8)-0.56%
EPS beat(12)5
Avg EPS beat(12)-0.94%
EPS beat(16)7
Avg EPS beat(16)0.24%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.09%
Revenue beat(4)0
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-0.09%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)0
Avg Revenue beat(12)-3.01%
Revenue beat(16)1
Avg Revenue beat(16)-2.68%
PT rev (1m)-0.06%
PT rev (3m)-3.11%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 13.43 | ||
| P/S | 0.67 | ||
| P/FCF | 24.33 | ||
| P/OCF | 16.19 | ||
| P/B | 2.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.97 |
EPS(TTM)4.82
EY6.75%
EPS(NY)5.32
Fwd EY7.45%
FCF(TTM)2.94
FCFY4.11%
OCF(TTM)4.41
OCFY6.18%
SpS106.69
BVpS27.72
TBVpS-15.11
PEG (NY)3.94
PEG (5Y)2.39
Graham Number54.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.52% | ||
| ROE | 11.63% | ||
| ROCE | 9.68% | ||
| ROIC | 6.64% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 16.65% | ||
| OM | 5.94% | ||
| PM (TTM) | 3.02% | ||
| GM | 31.19% | ||
| FCFM | 2.75% |
ROA(3y)4.67%
ROA(5y)5.33%
ROE(3y)12.83%
ROE(5y)13.8%
ROIC(3y)8.02%
ROIC(5y)8.48%
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 | 0.91 | ||
| Debt/FCF | 8.7 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 58.69% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 5.16 | ||
| Cash Conversion | 49.81% | ||
| Profit Quality | 91.05% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.63 |
F-Score5
WACC8.87%
ROIC/WACC0.75
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)14.49%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%13.11%
EPS Next Y3.76%
EPS Next 2Y5.94%
EPS Next 3Y7.19%
EPS Next 5Y7.39%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%5.2%
Revenue Next Year1.74%
Revenue Next 2Y2.59%
Revenue Next 3Y2.89%
Revenue Next 5Y3.05%
EBIT growth 1Y26.48%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year14.87%
EBIT Next 3Y8.36%
EBIT Next 5YN/A
FCF growth 1Y-45.15%
FCF growth 3Y1.58%
FCF growth 5Y1.99%
OCF growth 1Y-31.93%
OCF growth 3Y6.12%
OCF growth 5Y4.66%
HENRY SCHEIN INC / HSIC FAQ
Can you provide the ChartMill fundamental rating for HENRY SCHEIN INC?
ChartMill assigns a fundamental rating of 4 / 10 to HSIC.
Can you provide the valuation status for HENRY SCHEIN INC?
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 is the earnings growth outlook for HENRY SCHEIN INC?
The Earnings per Share (EPS) of HENRY SCHEIN INC (HSIC) is expected to grow by 3.76% in the next year.