DENTSPLY SIRONA INC (XRAY)
US24906P1093 - Common Stock
Overall XRAY gets a fundamental rating of 4 out of 10. We evaluated XRAY against 195 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.
1. Profitability
1.1 Basic Checks
XRAY had positive earnings in the past year.
In the past year XRAY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: XRAY reported negative net income in multiple years.
Each year in the past 5 years XRAY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of XRAY (-1.79%) is better than 67.18% of its industry peers.
The Return On Equity of XRAY (-4.01%) is better than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 3.93%, XRAY is doing good in the industry, outperforming 74.87% of the companies in the same industry.
XRAY had an Average Return On Invested Capital over the past 3 years of 4.86%. This is below the industry average of 8.50%.
| Industry Rank | Sector 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
XRAY has a better Operating Margin (7.47%) than 73.33% of its industry peers.
XRAY's Operating Margin has declined in the last couple of years.
The Gross Margin of XRAY (52.71%) is comparable to the rest of the industry.
XRAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for XRAY has been reduced compared to 5 years ago.
Compared to 1 year ago, XRAY has a worse debt to assets ratio.
2.2 Solvency
XRAY has an Altman-Z score of 1.74. This is a bad value and indicates that XRAY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.74, XRAY perfoms like the industry average, outperforming 59.49% of the companies in the same 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.
The Debt to FCF ratio of XRAY (9.29) is better than 76.41% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that XRAY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, XRAY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 9.29 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.41
WACC9.55%
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 84.62% 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.
The Quick ratio of XRAY (0.95) is worse than 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for XRAY have decreased strongly by -12.02% in the last year.
The Earnings Per Share has been decreasing by -1.86% on average over the past years.
Looking at the last year, XRAY shows a small growth in Revenue. The Revenue has grown by 1.10% in the last year.
Measured over the past years, XRAY shows a decrease in Revenue. The Revenue has been decreasing by -0.11% on average per year.
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
Based on estimates for the next years, XRAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.81% on average per year.
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 Y14.75%
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.76, the valuation of XRAY can be described as correct.
Based on the Price/Earnings ratio, XRAY is valued cheaper than 88.21% of the companies in the same industry.
XRAY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
XRAY is valuated correctly with a Price/Forward Earnings ratio of 14.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XRAY indicates a rather cheap valuation: XRAY is cheaper than 92.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. XRAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
89.74% of the companies in the same industry are more expensive than XRAY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, XRAY is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.93 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
XRAY's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y15.96%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
XRAY has a Yearly Dividend Yield of 2.10%. 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 3.03. XRAY pays more dividend than 96.92% of the companies in the same industry.
XRAY's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of XRAY grows each year by 9.48%, 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 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
The earnings of XRAY are negative and hence is the payout ratio. XRAY will probably not be able to sustain this dividend level.
XRAY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-87.88%
EPS Next 2Y15.96%
EPS Next 3Y15.6%
DENTSPLY SIRONA INC
NASDAQ:XRAY (4/25/2024, 8:51:09 AM)
30.67
-0.25 (-0.81%)
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 Cap6.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.6 | ||
| 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)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Y14.75%
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