DENTSPLY SIRONA INC (XRAY)

US24906P1093 - Common Stock

33.19  -0.12 (-0.36%)

After market: 33.19 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to XRAY. XRAY was compared to 196 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 is valued correctly, but it does not seem to be growing.



4

1. Profitability

1.1 Basic Checks

In the past year XRAY was profitable.
In the past year XRAY had a positive cash flow from operations.
In multiple years XRAY reported negative net income over the last 5 years.
Each year in the past 5 years XRAY had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -1.79%, XRAY is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
With a decent Return On Equity value of -4.01%, XRAY is doing good in the industry, outperforming 66.33% of the companies in the same industry.
XRAY has a better Return On Invested Capital (3.93%) than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XRAY is below the industry average of 8.51%.
Industry RankSector Rank
ROA -1.79%
ROE -4.01%
ROIC 3.93%
ROA(3y)-3.26%
ROA(5y)-1.52%
ROE(3y)-6.9%
ROE(5y)-3.43%
ROIC(3y)4.86%
ROIC(5y)4.47%

1.3 Margins

With a decent Operating Margin value of 7.47%, XRAY is doing good in the industry, outperforming 73.47% of the companies in the same industry.
XRAY's Operating Margin has declined in the last couple of years.
XRAY has a Gross Margin (52.71%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of XRAY has remained more or less at the same level.
Industry RankSector Rank
OM 7.47%
PM (TTM) N/A
GM 52.71%
OM growth 3Y-3.46%
OM growth 5Y-3.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.16%
GM growth 5Y0.32%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XRAY is destroying value.
The number of shares outstanding for XRAY has been reduced compared to 1 year ago.
Compared to 5 years ago, XRAY has less shares outstanding
XRAY has a worse debt/assets ratio than last year.

2.2 Solvency

XRAY has an Altman-Z score of 1.82. This is not the best score and indicates that XRAY is in the grey zone with still only limited risk for bankruptcy at the moment.
XRAY has a Altman-Z score (1.82) which is comparable to the rest of the industry.
XRAY has a debt to FCF ratio of 9.29. This is a negative value and a sign of low solvency as XRAY would need 9.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 9.29, XRAY is doing good in the industry, outperforming 76.53% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that XRAY is somewhat dependend on debt financing.
The Debt to Equity ratio of XRAY (0.55) is worse than 68.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 9.29
Altman-Z 1.82
ROIC/WACC0.43
WACC9.07%

2.3 Liquidity

XRAY has a Current Ratio of 1.38. This is a normal value and indicates that XRAY is financially healthy and should not expect problems in meeting its short term obligations.
XRAY has a Current ratio of 1.38. This is amonst the worse of the industry: XRAY underperforms 86.73% of its industry peers.
XRAY has a Quick Ratio of 1.38. This is a bad value and indicates that XRAY is not financially healthy enough and could expect problems in meeting its short term obligations.
XRAY's Quick ratio of 0.95 is on the low side compared to the rest of the industry. XRAY is outperformed by 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 1.38
Quick Ratio 0.95

3

3. Growth

3.1 Past

XRAY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.02%.
Measured over the past years, XRAY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.86% on average per year.
The Revenue has been growing slightly by 1.10% in the past year.
The Revenue has been decreasing by -0.11% on average over the past years.
EPS 1Y (TTM)-12.02%
EPS 3Y0.74%
EPS 5Y-1.86%
EPS growth Q2Q-4.35%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y5.9%
Revenue growth 5Y-0.11%
Revenue growth Q2Q2.95%

3.2 Future

XRAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.81% yearly.
Based on estimates for the next years, XRAY will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y14.72%
EPS Next 2Y15.96%
EPS Next 3Y15.6%
EPS Next 5Y13.81%
Revenue Next Year1.85%
Revenue Next 2Y2.88%
Revenue Next 3Y3.2%
Revenue Next 5Y3.77%

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 accelerating.

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.14, which indicates a rather expensive current valuation of XRAY.
XRAY's Price/Earnings ratio is rather cheap when compared to the industry. XRAY is cheaper than 88.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. XRAY is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.81, which indicates a correct valuation of XRAY.
Based on the Price/Forward Earnings ratio, XRAY is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
XRAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 18.14
Fwd PE 15.81

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, XRAY is valued cheaply inside the industry as 90.31% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XRAY indicates a rather cheap valuation: XRAY is cheaper than 87.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 30.19
EV/EBITDA 13.6

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as XRAY's earnings are expected to grow with 15.60% in the coming years.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y15.96%
EPS Next 3Y15.6%

6

5. Dividend

5.1 Amount

XRAY has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
XRAY's Dividend Yield is rather good when compared to the industry average which is at 2.88. XRAY pays more dividend than 96.43% of the companies in the same industry.
XRAY's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.91%

5.2 History

On average, the dividend of XRAY grows each year by 9.48%, which is quite nice.
XRAY has paid a dividend for at least 10 years, which is a reliable track record.
XRAY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.48%
Div Incr Years13
Div Non Decr Years16

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 earnings are growing more, so the dividend growth is sustainable.
DP-87.88%
EPS Next 2Y15.96%
EPS Next 3Y15.6%

DENTSPLY SIRONA INC

NASDAQ:XRAY (3/28/2024, 8:00:02 PM)

After market: 33.19 0 (0%)

33.19

-0.12 (-0.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.91%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.14
Fwd PE 15.81
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.23
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.79%
ROE -4.01%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.47%
PM (TTM) N/A
GM 52.71%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.38
Quick Ratio 0.95
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.02%
EPS 3Y0.74%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.1%
Revenue growth 3Y5.9%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y