10Y annualized return is
positive but below market average
at 1.8% per year
HSIC has met or exceeded earnings expectations in
few
recent quarters (4/10)
Attractive Price-to-Sales Ratio
Reasonable EV to EBITDA Ratio
Strong Gross Profit Margin
Decent Return on Equity
Manageable Debt Levels
Strong Interest Coverage
🏆 Strong Market Position
🔄 Restructuring for Efficiency
📈 Recent Financial Performance
🚀 Strategic Growth Plan
🛠️ Innovation and Technology
High Price-to-Earnings Ratio
Low Net Profit Margin
Low Operating Profit Margin
Low Quick Ratio
Very Low Cash Ratio
⚠️ Market Growth Concerns
💔 Cyber Incident Impact
🔮 Uncertain Market Dynamics
❓ Dependency on Acquisitions
Overall, Henry Schein demonstrates a strong business quality characterized by a solid market position and proactive restructuring efforts, although it faces challenges in market growth and external vulnerabilities. The future prospects are bolstered by a strategic growth plan and technology investments, despite some uncertainties regarding market dynamics and reliance on acquisitions.
Analysis Date: February 25, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Henry Schein, Inc. is a company that helps health care professionals by providing them with a wide range of products and services. They sell dental supplies like tools, materials, and equipment needed for dental practices. They also supply medical products such as medicines, vaccines, and surgical tools. In addition to these products, Henry Schein offers software and support services to help doctors and dentists manage their practices better. Founded in 1932, the company is based in Melville, New York, and serves customers around the world.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$61.26
Current Market Price: $64.29
IV/P Ratio: 0.95x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-5.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for HSIC
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (21.23)
P/B ratio ≤ 1.5 (2.44)
Current ratio ≥ 2.0 (1.42x)
Long-term debt < Net current assets (1.77x)
Margin of safety (-5.0%)
HSIC does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.14%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
30.71%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
3.08%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 30.71% indicates that the company retains a solid portion of revenue after accounting for the cost of goods sold, which is a positive sign for profitability.
With a return on equity (ROE) of 11.14%, the company is generating a respectable return on shareholders' equity, reflecting effective management and profitability.
The net profit margin of 3.08% indicates that the company retains a small portion of revenue as profit, which may raise concerns about overall profitability.
An operating profit margin of just 5.10% suggests that operational efficiency may be an area needing improvement, as it indicates limited profit from operations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.59x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.42x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
A debt-to-equity ratio of 0.846 indicates a balanced approach to financing through debt, suggesting the company is not excessively leveraged.
An interest coverage ratio of 4.93 reveals that the company can comfortably cover its interest expenses, indicating financial stability.
A quick ratio of 0.775 suggests potential liquidity issues, indicating that the company may struggle to meet short-term liabilities without selling inventory.
The cash ratio of 0.044 indicates that the company has a minimal cash reserve to cover immediate liabilities, which could be a concern in times of financial stress.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Henry Schein has established a solid market position by generating over 50% of its profits from high-growth, high-margin businesses and its own brand products. This demonstrates a strong competitive advantage in the dental and medical distribution markets.
The company is actively restructuring to improve operational efficiency, with an estimated annual run rate savings of $75 million to $100 million by the end of 2025. This reflects a proactive approach to cost management and long-term sustainability.
The company reported a significant increase in GAAP net income for Q4 2024, rising to $94 million compared to just $18 million in the previous year. This improvement indicates strong financial recovery post-cyber incident.
Market growth for dental and medical products has been below long-term guidance due to customer migration to lower-priced products, which could impact future sales.
The previous year’s cybersecurity incident had lingering effects on sales, notably in the medical division, indicating vulnerability to external shocks.
Henry Schein is optimistic about its updated '25 to '27 BOLD+1 Strategic Plan, which focuses on leveraging synergies across segments and enhancing e-commerce capabilities, positioning it well for future growth.
The company is making significant investments in technology, particularly in cloud-based practice management and e-commerce platforms, which is expected to enhance customer engagement and operational efficiency.
The company anticipates modest growth in the dental and medical markets, which may present challenges in achieving growth targets. Market growth is projected to be lower than previously expected.
The reliance on mergers and acquisitions for growth has been noted as activity was lower than in previous years, raising questions about organic growth sustainability.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 1.70x)
Total Bought
Total value of insider purchases in recent quarters
$244090
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$143295
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
24
High insider activity
Recent Trend
Change in insider trading pattern
HSIC: No trend data available
