HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
USA - NASDAQ:HSIC - US8064071025 - Common Stock
68.81 USD
-0.2 (-0.29%)
68.81 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 is not valued too expensively and it also shows a decent 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.
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
The Return On Assets of HSIC (3.57%) is better than 69.31% of its industry peers.
The Return On Equity of HSIC (11.29%) is better than 76.24% 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 69.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSIC is in line with the industry average of 9.19%.
| 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 has a Profit Margin of 3.05%. This is in the better half of the industry: HSIC outperforms 66.34% of its industry peers.
In the last couple of years the Profit Margin of HSIC has declined.
The Operating Margin of HSIC (6.08%) is better than 63.37% of its industry peers.
HSIC's Operating Margin has declined in the last couple of years.
HSIC's Gross Margin of 31.33% is in line compared to the rest of the industry. HSIC outperforms 58.42% of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HSIC is destroying value.
The number of shares outstanding for HSIC has been reduced compared to 1 year ago.
Compared to 5 years ago, HSIC has less shares outstanding
HSIC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HSIC (2.66) is comparable to the rest of the 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.
HSIC has a Debt to FCF ratio (9.04) which 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 of 0.87. This is comparable to the rest of the industry: HSIC outperforms 40.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.8
WACC8.39%
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 of 1.41. This is comparable to the rest of the industry: HSIC outperforms 44.55% of its industry peers.
A Quick Ratio of 0.78 indicates that HSIC may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, HSIC is not doing good in the industry: 78.22% of the companies in the same industry are doing better.
| 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.
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
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y3.82%
EPS Next 2Y6.1%
EPS Next 3Y6.83%
EPS Next 5Y7.78%
Revenue Next Year1.76%
Revenue Next 2Y2.65%
Revenue Next 3Y3.02%
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.
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
The Price/Earnings ratio is 14.77, which indicates a correct valuation of HSIC.
80.20% of the companies in the same industry are more expensive than HSIC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.27, HSIC is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.90, which indicates a correct valuation of HSIC.
HSIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HSIC is cheaper than 81.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. HSIC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSIC is valued a bit cheaper than 71.29% of the companies in the same industry.
HSIC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.98 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of HSIC may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)2.38
EPS Next 2Y6.1%
EPS Next 3Y6.83%
5. Dividend
5.1 Amount
No dividends for HSIC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.81
-0.2 (-0.29%)
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 Change5.04%
Ins Owners0.75%
Ins Owner Change-0.55%
Market Cap8.34B
Analysts71.3
Price Target74.93 (8.89%)
Short Float %7.77%
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)-3.05%
PT rev (3m)-3.49%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)1.13%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.77 | ||
| Fwd PE | 12.9 | ||
| P/S | 0.65 | ||
| P/FCF | 24.98 | ||
| P/OCF | 16.3 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.59 |
EPS(TTM)4.66
EY6.77%
EPS(NY)5.34
Fwd EY7.75%
FCF(TTM)2.75
FCFY4%
OCF(TTM)4.22
OCFY6.14%
SpS105.33
BVpS28.41
TBVpS-13.86
PEG (NY)3.86
PEG (5Y)2.38
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 | 2.66 |
F-Score5
WACC8.39%
ROIC/WACC0.8
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 Y3.82%
EPS Next 2Y6.1%
EPS Next 3Y6.83%
EPS Next 5Y7.78%
Revenue 1Y (TTM)2.29%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%3.32%
Revenue Next Year1.76%
Revenue Next 2Y2.65%
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%