HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock - Currency: USD
Overall HSIC gets a fundamental rating of 4 out of 10. We evaluated HSIC against 103 industry peers in the Health Care Providers & Services industry. Both the profitability and the financial health of HSIC get a neutral evaluation. Nothing too spectacular is happening here. HSIC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HSIC had positive earnings in the past year.
In the past year HSIC had a positive cash flow from operations.
In the past 5 years HSIC has always been profitable.
Each year in the past 5 years HSIC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.88%, HSIC is in the better half of the industry, outperforming 71.84% of the companies in the same industry.
With a decent Return On Equity value of 12.30%, HSIC is doing good in the industry, outperforming 77.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.05%, HSIC is in the better half of the industry, outperforming 68.93% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HSIC is in line with the industry average of 9.70%.
| 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
Looking at the Profit Margin, with a value of 3.21%, HSIC is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
In the last couple of years the Profit Margin of HSIC has declined.
HSIC has a better Operating Margin (6.13%) than 65.05% of its industry peers.
HSIC's Operating Margin has declined in the last couple of years.
HSIC's Gross Margin of 31.60% is in line compared to the rest of the industry. HSIC outperforms 56.31% of 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
HSIC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HSIC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HSIC has been reduced compared to 5 years ago.
HSIC has a worse debt/assets ratio than last year.
2.2 Solvency
HSIC has an Altman-Z score of 2.83. 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.
Looking at the Altman-Z score, with a value of 2.83, HSIC is in the better half of the industry, outperforming 61.16% of the companies in the same industry.
HSIC has a debt to FCF ratio of 5.69. This is a neutral value as HSIC would need 5.69 years to pay back of all of its debts.
HSIC's Debt to FCF ratio of 5.69 is fine compared to the rest of the industry. HSIC outperforms 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.
With a Debt to Equity ratio value of 0.86, HSIC perfoms like the industry average, outperforming 41.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.88
WACC8.05%
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.
The Current ratio of HSIC (1.38) is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that HSIC may have some problems paying its short term obligations.
The Quick ratio of HSIC (0.75) is worse 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.
Measured over the past 5 years, HSIC shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
Looking at the last year, HSIC shows a small growth in Revenue. The Revenue has grown by 1.75% in the last year.
HSIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.88% yearly.
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
HSIC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y4.86%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.92, which indicates a correct valuation of HSIC.
Compared to the rest of the industry, the Price/Earnings ratio of HSIC indicates a somewhat cheap valuation: HSIC is cheaper than 75.73% of the companies listed in the same industry.
HSIC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.04.
Based on the Price/Forward Earnings ratio of 13.28, the valuation of HSIC can be described as correct.
HSIC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 75.73% of the companies in the same industry.
HSIC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.28 |
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 65.05% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HSIC indicates a somewhat cheap valuation: HSIC is cheaper than 65.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.58 | ||
| EV/EBITDA | 10.22 |
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)3.07
PEG (5Y)2.41
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 |
71.46
-1.16 (-1.6%)
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 Change0.12%
Ins Owners0.74%
Ins Owner Change6.34%
Market Cap8.93B
Analysts73.91
Price Target77.2 (8.03%)
Short Float %6.69%
Short Ratio4.41
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)-0.56%
PT rev (3m)-4.6%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.28 | ||
| P/S | 0.71 | ||
| P/FCF | 17.58 | ||
| P/OCF | 12.98 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.22 |
EPS(TTM)4.79
EY6.7%
EPS(NY)5.38
Fwd EY7.53%
FCF(TTM)4.06
FCFY5.69%
OCF(TTM)5.5
OCFY7.7%
SpS101.35
BVpS26.48
TBVpS-13.39
PEG (NY)3.07
PEG (5Y)2.41
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
WACC8.05%
ROIC/WACC0.88
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 Y4.86%
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%