Henry Schein, Inc. Fundamental Analysis
Henry Schein, Inc. (HSIC) shows weak financial fundamentals with a PE ratio of 23.78, profit margin of 2.95%, and ROE of 11.86%. The company generates $13.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HSIC's fundamental strength across five key dimensions:
Efficiency Score
WeakHSIC struggles to generate sufficient returns from assets.
Valuation Score
ModerateHSIC shows balanced valuation metrics.
Growth Score
ModerateHSIC shows steady but slowing expansion.
Financial Health Score
ModerateHSIC shows balanced financial health with some risks.
Profitability Score
WeakHSIC struggles to sustain strong margins.
Key Financial Metrics
Is HSIC Expensive or Cheap?
P/E Ratio
HSIC trades at 23.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HSIC's PEG of 7.70 indicates potential overvaluation.
Price to Book
The market values Henry Schein, Inc. at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.69 times EBITDA. This is generally considered low.
How Well Does HSIC Make Money?
Net Profit Margin
For every $100 in sales, Henry Schein, Inc. keeps $2.95 as profit after all expenses.
Operating Margin
Core operations generate 5.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.86 in profit for every $100 of shareholder equity.
ROA
Henry Schein, Inc. generates $3.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Henry Schein, Inc. generates limited operating cash flow of $572.86M, signaling weaker underlying cash strength.
Free Cash Flow
Henry Schein, Inc. produces free cash flow of $427.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.75 in free cash annually.
FCF Yield
HSIC converts 4.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HSIC Stacks Against Its Sector Peers
| Metric | HSIC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.78 | 29.03 | Better (Cheaper) |
| ROE | 11.86% | 773.00% | Weak |
| Net Margin | 2.95% | -53616.00% (disorted) | Weak |
| Debt/Equity | 1.15 | 0.50 | Weak (High Leverage) |
| Current Ratio | 1.36 | 4.44 | Neutral |
| ROA | 3.49% | -20231.00% (disorted) | Weak |
HSIC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Henry Schein, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation