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 103 industry peers in the Health Care Providers & Services industry. HSIC has an average financial health and profitability rating. 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.
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
HSIC has a Return On Assets of 3.88%. This is in the better half of the industry: HSIC outperforms 71.84% of its industry peers.
HSIC's Return On Equity of 12.30% is fine compared to the rest of the industry. HSIC outperforms 76.70% of its industry peers.
HSIC's Return On Invested Capital of 7.05% is fine compared to the rest of the industry. HSIC outperforms 68.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSIC is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.3% | ||
| ROIC | 7.05% |
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 has a Profit Margin of 3.21%. This is in the better half of the industry: HSIC outperforms 66.02% of its industry peers.
HSIC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.13%, HSIC is in the better half of the industry, outperforming 65.05% of the companies in the same industry.
HSIC's Operating Margin has declined in the last couple of years.
HSIC has a Gross Margin (31.60%) 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 | 6.13% | ||
| PM (TTM) | 3.21% | ||
| GM | 31.6% |
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.
HSIC has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.83 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.83, HSIC is doing good in the industry, outperforming 62.14% of the companies in the same industry.
The Debt to FCF ratio of HSIC is 5.69, which is a neutral value as it means it would take HSIC, 5.69 years of fcf income to pay off all of its debts.
HSIC has a better Debt to FCF ratio (5.69) than 61.16% of its industry peers.
HSIC has a Debt/Equity ratio of 0.86. This is a neutral value indicating HSIC is somewhat dependend on debt financing.
HSIC has a Debt to Equity ratio (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.87
WACC8.14%
2.3 Liquidity
HSIC has a Current Ratio of 1.38. This is a normal value and indicates that HSIC is financially healthy and should not expect problems in meeting its short term obligations.
HSIC has a Current ratio of 1.38. This is comparable to the rest of the industry: HSIC outperforms 43.69% of its industry peers.
A Quick Ratio of 0.75 indicates that HSIC may have some problems paying its short term obligations.
HSIC has a worse Quick ratio (0.75) than 78.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
HSIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.11%, which is quite good.
The Earnings Per Share has been growing slightly by 6.19% on average over the past years.
Looking at the last year, HSIC shows a small growth in Revenue. The Revenue has grown by 1.75% in the last year.
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)9.11%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%4.55%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%-0.13%
3.2 Future
The Earnings Per Share is expected to grow by 7.69% 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 Y4.92%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.69%
Revenue Next Year1.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.25 indicates a correct valuation of HSIC.
HSIC's Price/Earnings ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 79.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of HSIC to the average of the S&P500 Index (27.15), we can say HSIC is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.57, which indicates a correct valuation of HSIC.
Based on the Price/Forward Earnings ratio, HSIC is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
HSIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
68.93% 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 a bit cheaper when compared to the industry. HSIC is cheaper than 69.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.97 | ||
| EV/EBITDA | 10.27 |
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)3.1
PEG (5Y)2.46
EPS Next 2Y6.57%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
No dividends for HSIC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.05
-0.22 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.25%
Inst Owner Change0.73%
Ins Owners0.74%
Ins Owner Change6.34%
Market Cap9.13B
Analysts73.91
Price Target77.59 (6.21%)
Short Float %7.4%
Short Ratio5.1
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)-0.87%
Min EPS beat(2)-3.32%
Max EPS beat(2)1.57%
EPS beat(4)2
Avg EPS beat(4)-0.07%
Min EPS beat(4)-3.32%
Max EPS beat(4)2.52%
EPS beat(8)4
Avg EPS beat(8)-0.25%
EPS beat(12)4
Avg EPS beat(12)-1.28%
EPS beat(16)8
Avg EPS beat(16)2.07%
Revenue beat(2)0
Avg Revenue beat(2)-4.41%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)-3.77%
Revenue beat(4)0
Avg Revenue beat(4)-4.63%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-3.77%
Revenue beat(8)0
Avg Revenue beat(8)-3.82%
Revenue beat(12)0
Avg Revenue beat(12)-3.76%
Revenue beat(16)3
Avg Revenue beat(16)-2.16%
PT rev (1m)-0.95%
PT rev (3m)-5.21%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 13.57 | ||
| P/S | 0.72 | ||
| P/FCF | 17.97 | ||
| P/OCF | 13.27 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.27 |
EPS(TTM)4.79
EY6.56%
EPS(NY)5.38
Fwd EY7.37%
FCF(TTM)4.06
FCFY5.56%
OCF(TTM)5.5
OCFY7.53%
SpS101.35
BVpS26.48
TBVpS-13.39
PEG (NY)3.1
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 12.3% | ||
| ROCE | 10.27% | ||
| ROIC | 7.05% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 17.9% | ||
| OM | 6.13% | ||
| PM (TTM) | 3.21% | ||
| GM | 31.6% | ||
| FCFM | 4.01% |
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-Score7
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 60.61% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 5.63 | ||
| Cash Conversion | 64.06% | ||
| Profit Quality | 124.82% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.83 |
F-Score7
WACC8.14%
ROIC/WACC0.87
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)9.11%
EPS 3Y1.6%
EPS 5Y6.19%
EPS Q2Q%4.55%
EPS Next Y4.92%
EPS Next 2Y6.57%
EPS Next 3Y7.88%
EPS Next 5Y7.69%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%-0.13%
Revenue Next Year1.43%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
Revenue Next 5Y3.67%
EBIT growth 1Y17.55%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year16.31%
EBIT Next 3Y8.77%
EBIT Next 5YN/A
FCF growth 1Y18.69%
FCF growth 3Y1.58%
FCF growth 5Y1.99%
OCF growth 1Y28.36%
OCF growth 3Y6.12%
OCF growth 5Y4.66%