DENTSPLY SIRONA INC (XRAY) Stock Fundamental Analysis
NASDAQ:XRAY - Nasdaq - US24906P1093 - Common Stock - Currency: USD
XRAY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of XRAY while its profitability can be described as average. XRAY has a bad growth rate and is valued cheaply. Finally XRAY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
XRAY had positive earnings in the past year.
XRAY had a positive operating cash flow in the past year.
XRAY had negative earnings in 4 of the past 5 years.
Each year in the past 5 years XRAY had a positive operating cash flow.
1.2 Ratios
XRAY has a Return On Assets (-15.82%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -46.86%, XRAY is in line with its industry, outperforming 50.26% of the companies in the same industry.
XRAY has a Return On Invested Capital of 4.36%. This is in the better half of the industry: XRAY outperforms 76.44% of its industry peers.
XRAY had an Average Return On Invested Capital over the past 3 years of 4.11%. This is below the industry average of 7.69%.
The last Return On Invested Capital (4.36%) for XRAY is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.82% | ||
| ROE | -46.86% | ||
| ROIC | 4.36% |
ROA(3y)-10.01%
ROA(5y)-5.27%
ROE(3y)-25.27%
ROE(5y)-13.81%
ROIC(3y)4.11%
ROIC(5y)4.26%
1.3 Margins
XRAY's Operating Margin of 6.06% is fine compared to the rest of the industry. XRAY outperforms 73.30% of its industry peers.
In the last couple of years the Operating Margin of XRAY has declined.
The Gross Margin of XRAY (51.89%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of XRAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.06% | ||
| PM (TTM) | N/A | ||
| GM | 51.89% |
OM growth 3Y-25.8%
OM growth 5Y-12.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.16%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
XRAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for XRAY is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that XRAY is in the distress zone and has some risk of bankruptcy.
XRAY's Altman-Z score of 1.05 is in line compared to the rest of the industry. XRAY outperforms 52.36% of its industry peers.
The Debt to FCF ratio of XRAY is 7.60, which is on the high side as it means it would take XRAY, 7.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.60, XRAY is doing good in the industry, outperforming 76.44% of the companies in the same industry.
XRAY has a Debt/Equity ratio of 0.82. This is a neutral value indicating XRAY is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, XRAY is doing worse than 72.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.6 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.54
WACC8.06%
2.3 Liquidity
XRAY has a Current Ratio of 1.10. 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 1.10, XRAY is doing worse than 85.86% of the companies in the same industry.
A Quick Ratio of 0.74 indicates that XRAY may have some problems paying its short term obligations.
The Quick ratio of XRAY (0.74) is worse than 86.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
XRAY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.74%.
XRAY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.38% yearly.
Looking at the last year, XRAY shows a decrease in Revenue. The Revenue has decreased by -4.34% in the last year.
The Revenue has been decreasing by -1.17% on average over the past years.
EPS 1Y (TTM)-8.74%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%-40.91%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-10.57%
3.2 Future
The Earnings Per Share is expected to grow by 14.20% 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 1.39% yearly.
EPS Next Y11.12%
EPS Next 2Y10.5%
EPS Next 3Y10.99%
EPS Next 5Y14.2%
Revenue Next Year-6.08%
Revenue Next 2Y-1.87%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.39%
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
Based on the Price/Earnings ratio of 8.23, the valuation of XRAY can be described as reasonable.
96.86% of the companies in the same industry are more expensive than XRAY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of XRAY to the average of the S&P500 Index (28.78), we can say XRAY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.41, which indicates a rather cheap valuation of XRAY.
Based on the Price/Forward Earnings ratio, XRAY is valued cheaply inside the industry as 97.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, XRAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRAY is valued cheaper than 95.81% of the companies in the same industry.
96.34% 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 | 9.75 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
XRAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y10.5%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, XRAY is a good candidate for dividend investing.
In the last 3 months the price of XRAY has falen by -29.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.87, XRAY pays a better dividend. On top of this XRAY pays more dividend than 99.48% of the companies listed in the same industry.
XRAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
The dividend of XRAY is nicely growing with an annual growth rate of 11.21%!
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)11.21%
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.
XRAY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-13.85%
EPS Next 2Y10.5%
EPS Next 3Y10.99%
13.75
+0.04 (+0.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.71%
Inst Owner Change-44.73%
Ins Owners0.25%
Ins Owner Change3.01%
Market Cap2.74B
Analysts71.3
Price Target19.04 (38.47%)
Short Float %5.43%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Yearly Dividend0.62
Dividend Growth(5Y)11.21%
DP-13.85%
Div Incr Years5
Div Non Decr Years29
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.96%
Min EPS beat(2)-40.52%
Max EPS beat(2)4.59%
EPS beat(4)1
Avg EPS beat(4)-10.2%
Min EPS beat(4)-40.52%
Max EPS beat(4)4.59%
EPS beat(8)3
Avg EPS beat(8)-1.62%
EPS beat(12)5
Avg EPS beat(12)0.78%
EPS beat(16)8
Avg EPS beat(16)2.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-0.72%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)-0.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.38%
Revenue beat(12)4
Avg Revenue beat(12)-1.92%
Revenue beat(16)6
Avg Revenue beat(16)-1.38%
PT rev (1m)-9.11%
PT rev (3m)-19.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.31%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-5.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.91%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 7.41 | ||
| P/S | 0.72 | ||
| P/FCF | 9.75 | ||
| P/OCF | 5.94 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)1.67
EY12.15%
EPS(NY)1.86
Fwd EY13.5%
FCF(TTM)1.41
FCFY10.25%
OCF(TTM)2.31
OCFY16.82%
SpS19.03
BVpS9.74
TBVpS-4.33
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.82% | ||
| ROE | -46.86% | ||
| ROCE | 5.52% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 16.7% | ||
| OM | 6.06% | ||
| PM (TTM) | N/A | ||
| GM | 51.89% | ||
| FCFM | 7.41% |
ROA(3y)-10.01%
ROA(5y)-5.27%
ROE(3y)-25.27%
ROE(5y)-13.81%
ROIC(3y)4.11%
ROIC(5y)4.26%
ROICexc(3y)4.36%
ROICexc(5y)4.5%
ROICexgc(3y)15.64%
ROICexgc(5y)20.94%
ROCE(3y)5.38%
ROCE(5y)5.49%
ROICexcg growth 3Y-31.16%
ROICexcg growth 5Y-12.42%
ROICexc growth 3Y-13.44%
ROICexc growth 5Y-4.44%
OM growth 3Y-25.8%
OM growth 5Y-12.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.16%
GM growth 5Y-0.95%
F-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.6 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 51.58% | ||
| Cap/Sales | 4.75% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 79.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.05 |
F-Score4
WACC8.06%
ROIC/WACC0.54
Cap/Depr(3y)46.81%
Cap/Depr(5y)41.51%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.74%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%-40.91%
EPS Next Y11.12%
EPS Next 2Y10.5%
EPS Next 3Y10.99%
EPS Next 5Y14.2%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-10.57%
Revenue Next Year-6.08%
Revenue Next 2Y-1.87%
Revenue Next 3Y-0.29%
Revenue Next 5Y1.39%
EBIT growth 1Y-21.77%
EBIT growth 3Y-28.45%
EBIT growth 5Y-13.75%
EBIT Next Year40.97%
EBIT Next 3Y18.08%
EBIT Next 5Y17.85%
FCF growth 1Y23.25%
FCF growth 3Y-18.29%
FCF growth 5Y-11.45%
OCF growth 1Y22.28%
OCF growth 3Y-11.14%
OCF growth 5Y-6.32%