HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
62.9 USD
+0.58 (+0.93%)
62.9 USD
0 (0%)
Overall HSIC gets a fundamental rating of 4 out of 10. We evaluated HSIC against 101 industry peers in the Health Care Providers & Services industry. While HSIC is still in line with the averages on profitability rating, there are concerns on its financial health. HSIC has a decent growth rate and is not valued too expensively.
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.
HSIC had positive earnings in each of the past 5 years.
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 68.32% of the companies in the same industry.
The Return On Equity of HSIC (11.29%) is better than 75.25% 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 67.33% 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 9.33%.
| 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
Looking at the Profit Margin, with a value of 3.05%, HSIC is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
In the last couple of years the Profit Margin of HSIC has declined.
Looking at the Operating Margin, with a value of 6.08%, HSIC is in the better half of the industry, outperforming 63.37% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of HSIC has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSIC is destroying value.
Compared to 1 year ago, HSIC has less shares outstanding
Compared to 5 years ago, HSIC has less shares outstanding
Compared to 1 year ago, HSIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.60, HSIC perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
HSIC has a debt to FCF ratio of 9.04. This is a negative value and a sign of low solvency as HSIC would need 9.04 years to pay back of all of its debts.
HSIC's Debt to FCF ratio of 9.04 is in line compared to the rest of the industry. HSIC outperforms 50.49% of its industry peers.
HSIC has a Debt/Equity ratio of 0.87. This is a neutral value indicating HSIC is somewhat dependend on debt financing.
HSIC's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. HSIC outperforms 41.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.75
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.41 indicates that HSIC should not have too much problems paying its short term obligations.
HSIC has a Current ratio (1.41) which is comparable to the rest of the industry.
HSIC has a Quick Ratio of 1.41. This is a bad value and indicates that HSIC is not financially healthy enough and could expect problems in meeting its short term obligations.
HSIC has a Quick ratio of 0.78. This is in the lower half of the industry: HSIC underperforms 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
HSIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.12%, which is quite good.
HSIC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
The Revenue has been growing slightly by 2.29% in the past year.
The Revenue has been growing slightly by 4.88% on average over the past years.
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
HSIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
Based on estimates for the next years, HSIC will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y3.75%
EPS Next 2Y5.96%
EPS Next 3Y7.27%
EPS Next 5Y7.78%
Revenue Next Year1.75%
Revenue Next 2Y2.62%
Revenue Next 3Y2.97%
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
A Price/Earnings ratio of 13.50 indicates a correct valuation of HSIC.
Based on the Price/Earnings ratio, HSIC is valued cheaply inside the industry as 82.18% of the companies are valued more expensively.
HSIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.19.
A Price/Forward Earnings ratio of 11.82 indicates a reasonable valuation of HSIC.
HSIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 83.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, HSIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HSIC indicates a somewhat cheap valuation: HSIC is cheaper than 78.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HSIC is valued a bit cheaper than 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.84 | ||
| EV/EBITDA | 8.92 |
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.
HSIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)2.18
EPS Next 2Y5.96%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
No dividends for HSIC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.9
+0.58 (+0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.98%
Inst Owner Change0.03%
Ins Owners0.77%
Ins Owner Change-0.21%
Market Cap7.63B
Revenue(TTM)12.77B
Net Income(TTM)389.00M
Analysts71.3
Price Target74.93 (19.13%)
Short Float %8.6%
Short Ratio5.96
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%
PT rev (3m)-2.95%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.66%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 11.82 | ||
| P/S | 0.6 | ||
| P/FCF | 22.84 | ||
| P/OCF | 14.9 | ||
| P/B | 2.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.92 |
EPS(TTM)4.66
EY7.41%
EPS(NY)5.32
Fwd EY8.46%
FCF(TTM)2.75
FCFY4.38%
OCF(TTM)4.22
OCFY6.71%
SpS105.33
BVpS28.41
TBVpS-13.86
PEG (NY)3.6
PEG (5Y)2.18
Graham Number54.58
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%
ROICexgc growth 3Y-9.94%
ROICexgc 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 | 2.6 |
F-Score5
WACC8.95%
ROIC/WACC0.75
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 Y3.75%
EPS Next 2Y5.96%
EPS Next 3Y7.27%
EPS Next 5Y7.78%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
Revenue Next Year1.75%
Revenue Next 2Y2.62%
Revenue Next 3Y2.97%
Revenue Next 5Y3.67%
EBIT growth 1Y25.93%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year14.87%
EBIT Next 3Y8.36%
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%
HENRY SCHEIN INC / HSIC FAQ
Can you provide the ChartMill fundamental rating for HENRY SCHEIN INC?
ChartMill assigns a fundamental rating of 4 / 10 to HSIC.
Can you provide the valuation status for HENRY SCHEIN INC?
ChartMill assigns a valuation rating of 6 / 10 to HENRY SCHEIN INC (HSIC). This can be considered as Fairly Valued.
Can you provide the profitability details for HENRY SCHEIN INC?
HENRY SCHEIN INC (HSIC) has a profitability rating of 6 / 10.
What is the earnings growth outlook for HENRY SCHEIN INC?
The Earnings per Share (EPS) of HENRY SCHEIN INC (HSIC) is expected to grow by 3.75% in the next year.