HENRY SCHEIN INC (HSIC) Stock Fundamental Analysis
NASDAQ:HSIC - Nasdaq - US8064071025 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HSIC. HSIC was compared to 102 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
In the past year HSIC was profitable.
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
Looking at the Return On Assets, with a value of 3.88%, HSIC is in the better half of the industry, outperforming 71.57% of the companies in the same industry.
HSIC has a better Return On Equity (12.30%) than 76.47% of its industry peers.
HSIC's Return On Invested Capital of 7.05% is fine compared to the rest of the industry. HSIC outperforms 70.59% 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 9.53%.
| 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 better Profit Margin (3.21%) than 66.67% of its industry peers.
HSIC's Profit Margin has declined in the last couple of years.
HSIC has a better Operating Margin (6.13%) than 64.71% of its industry peers.
HSIC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.60%, HSIC perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
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.
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
Compared to 1 year ago, HSIC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that HSIC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HSIC (2.80) is better than 63.73% of its industry peers.
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.
With a Debt to FCF ratio value of 5.69, HSIC perfoms like the industry average, outperforming 59.80% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that HSIC is somewhat dependend on debt financing.
The Debt to Equity ratio of HSIC (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.88
WACC8.03%
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 (1.38) which is comparable to the rest of the industry.
HSIC has a Quick Ratio of 1.38. This is a bad value and indicates that HSIC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, HSIC is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.11% over the past year.
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.
HSIC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.75%.
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 6.60% on average over the next years.
Based on estimates for the next years, HSIC will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y4.7%
EPS Next 2Y6.46%
EPS Next 3Y7.86%
EPS Next 5Y6.6%
Revenue Next Year1.42%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 15.27 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 78.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HSIC to the average of the S&P500 Index (26.60), we can say HSIC is valued slightly cheaper.
HSIC is valuated correctly with a Price/Forward Earnings ratio of 13.61.
Based on the Price/Forward Earnings ratio, HSIC is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, HSIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.61 |
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 70.59% of the companies listed in the same industry.
HSIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HSIC is cheaper than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 9.96 |
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)3.25
PEG (5Y)2.47
EPS Next 2Y6.46%
EPS Next 3Y7.86%
5. Dividend
5.1 Amount
HSIC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.13
+1.29 (+1.8%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.26%
Inst Owner Change1.11%
Ins Owners0.89%
Ins Owner Change6.43%
Market Cap8.96B
Analysts73.91
Price Target78.34 (7.12%)
Short Float %5.03%
Short Ratio3.44
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)-3.19%
PT rev (3m)1.06%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.3%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 13.61 | ||
| P/S | 0.71 | ||
| P/FCF | 17.64 | ||
| P/OCF | 13.02 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.96 |
EPS(TTM)4.79
EY6.55%
EPS(NY)5.37
Fwd EY7.35%
FCF(TTM)4.15
FCFY5.67%
OCF(TTM)5.62
OCFY7.68%
SpS103.41
BVpS27.02
TBVpS-13.66
PEG (NY)3.25
PEG (5Y)2.47
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 | 2.8 |
F-Score7
WACC8.03%
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 Y4.7%
EPS Next 2Y6.46%
EPS Next 3Y7.86%
EPS Next 5Y6.6%
Revenue 1Y (TTM)1.75%
Revenue growth 3Y0.73%
Revenue growth 5Y4.88%
Sales Q2Q%-0.13%
Revenue Next Year1.42%
Revenue Next 2Y2.49%
Revenue Next 3Y3.01%
Revenue Next 5Y3.83%
EBIT growth 1Y17.55%
EBIT growth 3Y-5.01%
EBIT growth 5Y0.11%
EBIT Next Year17.03%
EBIT Next 3Y9.37%
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%