DENTSPLY SIRONA INC (XRAY)
US24906P1093 - Common Stock
We assign a fundamental rating of 4 out of 10 to XRAY. XRAY was compared to 188 industry peers in the Health Care Equipment & Supplies industry. XRAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. XRAY has a bad growth rate and is valued cheaply. Finally XRAY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year XRAY was profitable.
In the past year XRAY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: XRAY reported negative net income in multiple years.
XRAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XRAY has a better Return On Assets (-2.68%) than 65.24% of its industry peers.
XRAY has a Return On Equity of -6.04%. This is in the better half of the industry: XRAY outperforms 65.24% of its industry peers.
XRAY has a Return On Invested Capital of 3.87%. This is in the better half of the industry: XRAY outperforms 74.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XRAY is below the industry average of 7.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -6.04% | ||
| ROIC | 3.87% |
ROA(3y)-3.26%
ROA(5y)-1.52%
ROE(3y)-6.9%
ROE(5y)-3.43%
ROIC(3y)4.86%
ROIC(5y)4.47%
1.3 Margins
XRAY's Operating Margin of 7.01% is fine compared to the rest of the industry. XRAY outperforms 73.26% of its industry peers.
XRAY's Operating Margin has declined in the last couple of years.
XRAY has a Gross Margin of 52.23%. This is comparable to the rest of the industry: XRAY outperforms 44.92% of its industry peers.
XRAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.01% | ||
| PM (TTM) | N/A | ||
| GM | 52.23% |
OM growth 3Y-3.46%
OM growth 5Y-3.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.16%
GM growth 5Y0.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XRAY is destroying value.
XRAY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for XRAY has been reduced compared to 5 years ago.
Compared to 1 year ago, XRAY has a worse debt to assets ratio.
2.2 Solvency
XRAY has an Altman-Z score of 1.56. This is a bad value and indicates that XRAY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.56, XRAY perfoms like the industry average, outperforming 49.73% of the companies in the same industry.
XRAY has a debt to FCF ratio of 5.77. This is a neutral value as XRAY would need 5.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.77, XRAY is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that XRAY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, XRAY is doing worse than 67.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.47
WACC8.22%
2.3 Liquidity
XRAY has a Current Ratio of 1.33. This is a normal value and indicates that XRAY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, XRAY is doing worse than 85.56% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that XRAY may have some problems paying its short term obligations.
XRAY's Quick ratio of 0.87 is on the low side compared to the rest of the industry. XRAY is outperformed by 87.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.95% over the past year.
Measured over the past years, XRAY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.86% on average per year.
XRAY shows a decrease in Revenue. In the last year, the revenue decreased by -1.02%.
The Revenue has been decreasing by -0.11% on average over the past years.
EPS 1Y (TTM)3.95%
EPS 3Y0.74%
EPS 5Y-1.86%
EPS Q2Q%-3.92%
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.9%
Revenue growth 5Y-0.11%
Sales Q2Q%-4.28%
3.2 Future
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
XRAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.88% yearly.
EPS Next Y10.22%
EPS Next 2Y13.03%
EPS Next 3Y13.45%
EPS Next 5Y14.3%
Revenue Next Year-1.12%
Revenue Next 2Y0.9%
Revenue Next 3Y1.85%
Revenue Next 5Y3.88%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
XRAY is valuated reasonably with a Price/Earnings ratio of 9.38.
XRAY's Price/Earnings ratio is rather cheap when compared to the industry. XRAY is cheaper than 95.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of XRAY to the average of the S&P500 Index (28.94), we can say XRAY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.38 indicates a rather cheap valuation of XRAY.
XRAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRAY is cheaper than 98.93% of the companies in the same industry.
XRAY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRAY is valued cheaper than 92.51% of the companies in the same industry.
95.19% of the companies in the same industry are more expensive than XRAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.61 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
XRAY's earnings are expected to grow with 13.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y13.03%
EPS Next 3Y13.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, XRAY has a reasonable but not impressive dividend return.
The stock price of XRAY dropped by -28.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.68, XRAY pays a better dividend. On top of this XRAY pays more dividend than 97.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, XRAY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
On average, the dividend of XRAY grows each year by 9.48%, which is quite nice.
XRAY has been paying a dividend for at least 10 years, so it has a reliable track record.
XRAY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.48%
Div Incr Years5
Div Non Decr Years29
5.3 Sustainability
The earnings of XRAY are negative and hence is the payout ratio. XRAY will probably not be able to sustain this dividend level.
The dividend of XRAY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-65.41%
EPS Next 2Y13.03%
EPS Next 3Y13.45%
DENTSPLY SIRONA INC
NASDAQ:XRAY (11/7/2024, 7:04:18 PM)
After market: 17.3899 +0.13 (+0.75%)17.26
-6.72 (-28.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.38 | ||
| Fwd PE | 7.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -6.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.01% | ||
| PM (TTM) | N/A | ||
| GM | 52.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.95%
EPS 3Y0.74%
EPS 5Y
EPS Q2Q%
EPS Next Y10.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.02%
Revenue growth 3Y5.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y