DENTSPLY SIRONA INC (XRAY) Stock Fundamental Analysis
NASDAQ:XRAY - Nasdaq - US24906P1093 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to XRAY. XRAY was compared to 187 industry peers in the Health Care Equipment & Supplies industry. There are concerns on the financial health of XRAY while its profitability can be described as average. XRAY has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
XRAY had positive earnings in the past year.
XRAY had a positive operating cash flow in the past year.
XRAY had negative earnings in 4 of the past 5 years.
In the past 5 years XRAY always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -15.01%, XRAY perfoms like the industry average, outperforming 55.08% of the companies in the same industry.
With a Return On Equity value of -45.17%, XRAY perfoms like the industry average, outperforming 50.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.66%, XRAY is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XRAY is below the industry average of 7.89%.
The last Return On Invested Capital (4.66%) for XRAY is above the 3 year average (4.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.01% | ||
| ROE | -45.17% | ||
| ROIC | 4.66% |
ROA(3y)-10.01%
ROA(5y)-5.27%
ROE(3y)-25.27%
ROE(5y)-13.81%
ROIC(3y)4.11%
ROIC(5y)4.26%
1.3 Margins
XRAY has a Operating Margin of 6.75%. This is in the better half of the industry: XRAY outperforms 75.40% of its industry peers.
In the last couple of years the Operating Margin of XRAY has declined.
With a Gross Margin value of 51.84%, XRAY perfoms like the industry average, outperforming 46.52% of the companies in the same industry.
In the last couple of years the Gross Margin of XRAY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.75% | ||
| PM (TTM) | N/A | ||
| GM | 51.84% |
OM growth 3Y-25.8%
OM growth 5Y-12.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.16%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XRAY is destroying value.
Compared to 1 year ago, XRAY has less shares outstanding
Compared to 5 years ago, XRAY has less shares outstanding
Compared to 1 year ago, XRAY has a worse debt to assets ratio.
2.2 Solvency
XRAY has an Altman-Z score of 1.08. This is a bad value and indicates that XRAY is not financially healthy and even has some risk of bankruptcy.
XRAY has a Altman-Z score of 1.08. This is comparable to the rest of the industry: XRAY outperforms 50.27% of its industry peers.
XRAY has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as XRAY would need 8.40 years to pay back of all of its debts.
The Debt to FCF ratio of XRAY (8.40) is better than 76.47% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that XRAY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.79, XRAY is not doing good in the industry: 73.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.6
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.10 indicates that XRAY should not have too much problems paying its short term obligations.
The Current ratio of XRAY (1.10) is worse than 87.17% of its industry peers.
XRAY has a Quick Ratio of 1.10. This is a bad value and indicates that XRAY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, XRAY is not doing good in the industry: 87.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for XRAY have decreased by -9.68% in the last year.
Measured over the past years, XRAY shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.38% on average per year.
XRAY shows a decrease in Revenue. In the last year, the revenue decreased by -5.61%.
XRAY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.17% yearly.
EPS 1Y (TTM)-9.68%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%2.38%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-7.76%
3.2 Future
Based on estimates for the next years, XRAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.35% on average per year.
XRAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.88%
EPS Next 2Y11.8%
EPS Next 3Y11.11%
EPS Next 5Y9.35%
Revenue Next Year-4.12%
Revenue Next 2Y-0.81%
Revenue Next 3Y0.45%
Revenue Next 5Y1.07%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.85, the valuation of XRAY can be described as very reasonable.
XRAY's Price/Earnings ratio is rather cheap when compared to the industry. XRAY is cheaper than 95.19% of the companies in the same industry.
XRAY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 7.92, the valuation of XRAY can be described as very cheap.
Based on the Price/Forward Earnings ratio, XRAY is valued cheaply inside the industry as 95.72% of the companies are valued more expensively.
XRAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
XRAY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. XRAY is cheaper than 93.05% of the companies in the same industry.
XRAY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. XRAY is cheaper than 95.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.86 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
XRAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y11.8%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
XRAY has a Yearly Dividend Yield of 4.00%.
Compared to an average industry Dividend Yield of 1.82, XRAY pays a better dividend. On top of this XRAY pays more dividend than 98.93% of the companies listed in the same industry.
XRAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
On average, the dividend of XRAY grows each year by 11.21%, which is quite nice.
XRAY has been paying a dividend for at least 10 years, so it has a reliable track record.
XRAY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.21%
Div Incr Years6
Div Non Decr Years30
5.3 Sustainability
XRAY has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of XRAY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-14.21%
EPS Next 2Y11.8%
EPS Next 3Y11.11%
16.54
+0.66 (+4.16%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.5%
Inst Owner Change0.95%
Ins Owners0.33%
Ins Owner Change6.93%
Market Cap3.30B
Analysts70.43
Price Target18.4 (11.25%)
Short Float %4.22%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend0.62
Dividend Growth(5Y)11.21%
DP-14.21%
Div Incr Years6
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.42%
Min EPS beat(2)-40.52%
Max EPS beat(2)45.37%
EPS beat(4)2
Avg EPS beat(4)1.53%
Min EPS beat(4)-40.52%
Max EPS beat(4)45.37%
EPS beat(8)3
Avg EPS beat(8)2.46%
EPS beat(12)6
Avg EPS beat(12)5.25%
EPS beat(16)8
Avg EPS beat(16)3.68%
Revenue beat(2)1
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)0.77%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)5
Avg Revenue beat(12)-1.53%
Revenue beat(16)6
Avg Revenue beat(16)-1.71%
PT rev (1m)0.46%
PT rev (3m)-9.03%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)10.68%
EPS NY rev (1m)2.34%
EPS NY rev (3m)4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.89 | ||
| P/FCF | 11.86 | ||
| P/OCF | 7.44 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.83 |
EPS(TTM)1.68
EY10.16%
EPS(NY)2.09
Fwd EY12.62%
FCF(TTM)1.39
FCFY8.43%
OCF(TTM)2.22
OCFY13.44%
SpS18.66
BVpS10.09
TBVpS-4.18
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.01% | ||
| ROE | -45.17% | ||
| ROCE | 5.9% | ||
| ROIC | 4.66% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 19.54% | ||
| OM | 6.75% | ||
| PM (TTM) | N/A | ||
| GM | 51.84% | ||
| FCFM | 7.48% |
ROA(3y)-10.01%
ROA(5y)-5.27%
ROE(3y)-25.27%
ROE(5y)-13.81%
ROIC(3y)4.11%
ROIC(5y)4.26%
ROICexc(3y)4.36%
ROICexc(5y)4.5%
ROICexgc(3y)15.64%
ROICexgc(5y)20.94%
ROCE(3y)5.38%
ROCE(5y)5.49%
ROICexcg growth 3Y-31.16%
ROICexcg growth 5Y-12.42%
ROICexc growth 3Y-13.44%
ROICexc growth 5Y-4.44%
OM growth 3Y-25.8%
OM growth 5Y-12.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.16%
GM growth 5Y-0.95%
F-Score3
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.4 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 48.25% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.08 |
F-Score3
WACC7.77%
ROIC/WACC0.6
Cap/Depr(3y)46.81%
Cap/Depr(5y)41.51%
Cap/Sales(3y)4.1%
Cap/Sales(5y)3.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.68%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%2.38%
EPS Next Y15.88%
EPS Next 2Y11.8%
EPS Next 3Y11.11%
EPS Next 5Y9.35%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-7.76%
Revenue Next Year-4.12%
Revenue Next 2Y-0.81%
Revenue Next 3Y0.45%
Revenue Next 5Y1.07%
EBIT growth 1Y-11.93%
EBIT growth 3Y-28.45%
EBIT growth 5Y-13.75%
EBIT Next Year49.44%
EBIT Next 3Y19.3%
EBIT Next 5Y10.5%
FCF growth 1Y7.34%
FCF growth 3Y-18.29%
FCF growth 5Y-11.45%
OCF growth 1Y9.93%
OCF growth 3Y-11.14%
OCF growth 5Y-6.32%