HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock - Currency: USD
HSIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 104 industry peers in the Health Care Providers & Services industry. HSIC has an average financial health and profitability rating. HSIC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HSIC had positive earnings in the past year.
HSIC had a positive operating cash flow in the past year.
In the past 5 years HSIC has always been profitable.
In the past 5 years HSIC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, HSIC is in the better half of the industry, outperforming 70.19% of the companies in the same industry.
The Return On Equity of HSIC (11.29%) is better than 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.75%, HSIC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 9.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 11.29% | ||
| ROIC | 6.75% |
ROA(3y)4.67%
ROA(5y)5.33%
ROE(3y)12.83%
ROE(5y)13.8%
ROIC(3y)8.02%
ROIC(5y)8.48%
1.3 Margins
HSIC's Profit Margin of 3.05% is fine compared to the rest of the industry. HSIC outperforms 65.38% of its industry peers.
In the last couple of years the Profit Margin of HSIC has declined.
HSIC's Operating Margin of 6.08% is fine compared to the rest of the industry. HSIC outperforms 65.38% of its industry peers.
HSIC's Operating Margin has declined in the last couple of years.
HSIC has a Gross Margin (31.33%) which is in line with its industry peers.
HSIC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 3.05% | ||
| GM | 31.33% |
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
HSIC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HSIC has less shares outstanding
Compared to 5 years ago, HSIC has less shares outstanding
The debt/assets ratio for HSIC is higher compared to a year ago.
2.2 Solvency
HSIC has an Altman-Z score of 2.68. 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.
With a decent Altman-Z score value of 2.68, HSIC is doing good in the industry, outperforming 60.58% of the companies in the same industry.
The Debt to FCF ratio of HSIC is 9.04, which is on the high side as it means it would take HSIC, 9.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HSIC (9.04) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.87 indicates that HSIC is somewhat dependend on debt financing.
HSIC has a Debt to Equity ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.85
WACC7.93%
2.3 Liquidity
HSIC has a Current Ratio of 1.41. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.41, HSIC is in line with its industry, outperforming 47.12% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that HSIC may have some problems paying its short term obligations.
HSIC has a Quick ratio of 0.78. This is in the lower half of the industry: HSIC underperforms 75.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.12% over the past year.
HSIC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
HSIC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.29%.
Measured over the past years, HSIC shows a small growth in Revenue. The Revenue has been growing by 4.88% on average per year.
EPS 1Y (TTM)8.12%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%-10.57%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
3.2 Future
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
HSIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
EPS Next Y4.86%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.78%
Revenue Next Year1.46%
Revenue Next 2Y2.51%
Revenue Next 3Y3.02%
Revenue Next 5Y3.67%
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 accelerating.
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
The Price/Earnings ratio is 14.64, which indicates a correct valuation of HSIC.
HSIC's Price/Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 80.77% of the companies in the same industry.
HSIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of HSIC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSIC indicates a rather cheap valuation: HSIC is cheaper than 80.77% of the companies listed in the same industry.
HSIC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
71.15% of the companies in the same industry are more expensive than HSIC, based on the Enterprise Value to EBITDA ratio.
HSIC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.53 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HSIC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HSIC may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)2.36
EPS Next 2Y6.57%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.21
-0.43 (-0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners94.76%
Inst Owner Change5.03%
Ins Owners0.75%
Ins Owner Change6.27%
Market Cap8.53B
Analysts70.43
Price Target77.28 (13.3%)
Short Float %7.2%
Short Ratio4.27
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)-3.98%
Min EPS beat(2)-9.54%
Max EPS beat(2)1.57%
EPS beat(4)2
Avg EPS beat(4)-2.19%
Min EPS beat(4)-9.54%
Max EPS beat(4)2.52%
EPS beat(8)3
Avg EPS beat(8)-1.5%
EPS beat(12)4
Avg EPS beat(12)-1.91%
EPS beat(16)7
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.6%
Min Revenue beat(2)-3.77%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-1.43%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)0
Avg Revenue beat(12)-3.48%
Revenue beat(16)2
Avg Revenue beat(16)-2.33%
PT rev (1m)-0.4%
PT rev (3m)-1.35%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.67 | ||
| P/S | 0.67 | ||
| P/FCF | 25.53 | ||
| P/OCF | 16.65 | ||
| P/B | 2.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)4.66
EY6.83%
EPS(NY)5.38
Fwd EY7.89%
FCF(TTM)2.67
FCFY3.92%
OCF(TTM)4.1
OCFY6%
SpS102.18
BVpS27.56
TBVpS-13.45
PEG (NY)3.01
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 11.29% | ||
| ROCE | 9.84% | ||
| ROIC | 6.75% | ||
| ROICexc | 6.86% | ||
| ROICexgc | 16.83% | ||
| OM | 6.08% | ||
| PM (TTM) | 3.05% | ||
| GM | 31.33% | ||
| FCFM | 2.61% |
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%
ROICexcg growth 3Y-9.94%
ROICexcg 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 | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 59.53% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 5.4 | ||
| Cash Conversion | 47.58% | ||
| Profit Quality | 85.86% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.68 |
F-Score5
WACC7.93%
ROIC/WACC0.85
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)8.12%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%-10.57%
EPS Next Y4.86%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.78%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
Revenue Next Year1.46%
Revenue Next 2Y2.51%
Revenue Next 3Y3.02%
Revenue Next 5Y3.67%
EBIT growth 1Y25.93%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year16%
EBIT Next 3Y8.74%
EBIT Next 5YN/A
FCF growth 1Y-37.22%
FCF growth 3Y1.58%
FCF growth 5Y1.99%
OCF growth 1Y-21.59%
OCF growth 3Y6.12%
OCF growth 5Y4.66%