DENTSPLY SIRONA INC (XRAY) Stock Fundamental Analysis
NASDAQ:XRAY - US24906P1093 - Common Stock
13.81 USD
-0.49 (-3.43%)
13.81 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to XRAY. XRAY was compared to 190 industry peers in the Health Care Equipment & Supplies industry. While XRAY is still in line with the averages on profitability rating, there are concerns on its financial health. XRAY is cheap, but on the other hand it scores bad on growth. XRAY also has an excellent dividend rating.
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.
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
Looking at the Return On Assets, with a value of -15.64%, XRAY is in line with its industry, outperforming 54.74% of the companies in the same industry.
XRAY has a Return On Equity (-48.42%) which is in line with its industry peers.
XRAY's Return On Invested Capital of 4.66% is fine compared to the rest of the industry. XRAY outperforms 75.79% of its industry peers.
XRAY had an Average Return On Invested Capital over the past 3 years of 4.11%. This is below the industry average of 8.46%.
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 | -15.64% | ||
| ROE | -48.42% | ||
| 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
Looking at the Operating Margin, with a value of 7.87%, XRAY is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
XRAY's Operating Margin has declined in the last couple of years.
XRAY has a Gross Margin (51.92%) which is in line with its industry peers.
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 | 7.87% | ||
| PM (TTM) | N/A | ||
| GM | 51.92% |
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
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
Based on the Altman-Z score of 1.12, we must say that XRAY is in the distress zone and has some risk of bankruptcy.
XRAY has a Altman-Z score (1.12) which is in line with its industry peers.
The Debt to FCF ratio of XRAY is 17.41, which is on the high side as it means it would take XRAY, 17.41 years of fcf income to pay off all of its debts.
XRAY's Debt to FCF ratio of 17.41 is fine compared to the rest of the industry. XRAY outperforms 71.58% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that XRAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, XRAY is doing worse than 79.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.41 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.72
WACC6.48%
2.3 Liquidity
XRAY has a Current Ratio of 1.69. 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 worse Current ratio (1.69) than 71.58% of its industry peers.
A Quick Ratio of 1.11 indicates that XRAY should not have too much problems paying its short term obligations.
XRAY has a Quick ratio of 1.11. This is in the lower half of the industry: XRAY underperforms 72.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
XRAY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.07%.
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 -5.78%.
Measured over the past years, XRAY shows a decrease in Revenue. The Revenue has been decreasing by -1.17% on average per year.
EPS 1Y (TTM)-7.07%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%6.12%
Revenue 1Y (TTM)-5.78%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-4.88%
3.2 Future
The Earnings Per Share is expected to grow by 11.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.02% on average over the next years.
EPS Next Y15.36%
EPS Next 2Y11.33%
EPS Next 3Y10.55%
EPS Next 5Y11.25%
Revenue Next Year-4.09%
Revenue Next 2Y-0.94%
Revenue Next 3Y0.27%
Revenue Next 5Y2.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.08, the valuation of XRAY can be described as reasonable.
Based on the Price/Earnings ratio, XRAY is valued cheaply inside the industry as 95.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of XRAY to the average of the S&P500 Index (26.90), we can say XRAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.67, the valuation of XRAY can be described as very cheap.
XRAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRAY is cheaper than 98.42% of the companies in the same industry.
XRAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRAY is valued cheaply inside the industry as 95.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, XRAY is valued cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y11.33%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
XRAY has a Yearly Dividend Yield of 4.14%, which is a nice return.
Compared to an average industry Dividend Yield of 1.73, XRAY pays a better dividend. On top of this XRAY pays more dividend than 99.47% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of XRAY is nicely growing with an annual growth rate of 11.21%!
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-13.49%
EPS Next 2Y11.33%
EPS Next 3Y10.55%
13.81
-0.49 (-3.43%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change-6.76%
Ins Owners0.33%
Ins Owner Change5.64%
Market Cap2.75B
Analysts70.43
Price Target17.13 (24.04%)
Short Float %3.97%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend0.62
Dividend Growth(5Y)11.21%
DP-13.49%
Div Incr Years6
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.27%
Min EPS beat(2)1.17%
Max EPS beat(2)45.37%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-40.52%
Max EPS beat(4)45.37%
EPS beat(8)3
Avg EPS beat(8)0.57%
EPS beat(12)6
Avg EPS beat(12)3.68%
EPS beat(16)8
Avg EPS beat(16)3.31%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)0.77%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)0.77%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)5
Avg Revenue beat(12)-1.6%
Revenue beat(16)5
Avg Revenue beat(16)-1.99%
PT rev (1m)-7.14%
PT rev (3m)-6.5%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-7.44%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 6.67 | ||
| P/S | 0.75 | ||
| P/FCF | 19.96 | ||
| P/OCF | 9.73 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.73 |
EPS(TTM)1.71
EY12.38%
EPS(NY)2.07
Fwd EY14.99%
FCF(TTM)0.69
FCFY5.01%
OCF(TTM)1.42
OCFY10.27%
SpS18.4
BVpS9.83
TBVpS-3.51
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.64% | ||
| ROE | -48.42% | ||
| ROCE | 5.89% | ||
| ROIC | 4.66% | ||
| ROICexc | 5.02% | ||
| ROICexgc | 12.12% | ||
| OM | 7.87% | ||
| PM (TTM) | N/A | ||
| GM | 51.92% | ||
| FCFM | 3.76% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 17.41 | ||
| Debt/EBITDA | 3.5 | ||
| Cap/Depr | 42.15% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.12 |
F-Score5
WACC6.48%
ROIC/WACC0.72
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)-7.07%
EPS 3Y-16.51%
EPS 5Y-7.38%
EPS Q2Q%6.12%
EPS Next Y15.36%
EPS Next 2Y11.33%
EPS Next 3Y10.55%
EPS Next 5Y11.25%
Revenue 1Y (TTM)-5.78%
Revenue growth 3Y-3.58%
Revenue growth 5Y-1.17%
Sales Q2Q%-4.88%
Revenue Next Year-4.09%
Revenue Next 2Y-0.94%
Revenue Next 3Y0.27%
Revenue Next 5Y2.02%
EBIT growth 1Y5.86%
EBIT growth 3Y-28.45%
EBIT growth 5Y-13.75%
EBIT Next Year50.11%
EBIT Next 3Y18.87%
EBIT Next 5Y12.9%
FCF growth 1Y-30.3%
FCF growth 3Y-18.29%
FCF growth 5Y-11.45%
OCF growth 1Y-15.27%
OCF growth 3Y-11.14%
OCF growth 5Y-6.32%