Henry Schein Inc
Exchange: NASDAQSector: HealthcareIndustry: Medical Distribution
Henry Schein, Inc. is a solutions company for health care professionals powered by a network of people and technology. With more than 25,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our distribution centers. A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 33 countries and territories. The Company's sales reached $12.7 billion in 2024 and have grown at a compound annual rate of approximately 11.2 percent since Henry Schein became a public company in 1995.
Did you know?
Carries 22.0x more debt than cash on its balance sheet.
Current Price
$78.22
+0.14%GoodMoat Value
$235.74
201.4% undervaluedProfile
Valuation (TTM)
Market Cap$9.21B
P/E23.14
EV$12.05B
P/B2.84
Shares Out117.72M
P/Sales0.70
Revenue$13.18B
EV/EBITDA12.68
Henry Schein Inc (HSIC) Stock Analysis
GoodMoat Analysis
Henry Schein is a leading global distributor of medical and dental products with a moderate competitive position, but its valuation appears deeply unfavourable relative to the provided target. The stock's current price of $74.92 is significantly below the GoodMoat target of $237.87, suggesting a potential margin of safety exceeding 68%. This discrepancy warrants a closer look to understand the underlying business quality and the source of the valuation gap.
Read full analysis
Henry Schein Inc operates as a global distributor of healthcare products and services, primarily to dental and medical office practitioners. Applying the GoodMoat framework, the company likely possesses a moderate moat based on criteria such as scale privilege, switching costs from integrated software and mission-critical supplies, and strategic partnerships. This would likely yield a Moat Score of 5 or higher, allowing it to pass the initial gate for further analysis. Its financials show mixed quality: a 7.7% YoY revenue growth and 12.3% ROE are adequate, but a 3.0% profit margin and a Debt/Equity ratio of 1.06 indicate a lower-margin, more leveraged business model compared to typical high-quality compounders. The critical finding is the extreme valuation gap. The current price of $74.92 is approximately 68% below the GoodMoat target of $237.87. According to Section 4 of the framework, this implies a margin of safety far exceeding the 40% threshold for 'Deeply Undervalued.' For a value investor, this massive disconnect between market price and target value is the core intrigue. It necessitates a thorough investigation to validate the business's durability and the reasonableness of the target price before any assessment can be made under the Decision Framework. Analysis based on data as of 2024-05-15.
Market Cap$9.21B
Current Price$78.22
P/E Ratio23.14
Forward P/E—
PEG Ratio1.74
EPS$3.27
Book Value$27.56
P/B Ratio2.84
HSIC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -1.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.3B
Revenue
10.0B
FY19
10.1B
FY20
12.4B
FY21
12.6B
FY22
12.3B
FY23
12.7B
FY24
13.2B
FY25
Net Income
695M
FY19
404M
FY20
631M
FY21
538M
FY22
416M
FY23
390M
FY24
398M
FY25
HSIC 52-Week Range
$62.03
$83.35
50-Day MA: $76.93200-Day MA: $72.49
Did you know?
Price sits at 76% of its 52-week range.
Henry Schein Inc (HSIC) Financial Summary
Henry Schein Inc (HSIC) is a Healthcare company in the Medical Distribution industry, listed on NASDAQ. The stock currently trades at $78.22 with a market capitalization of $9.21B.
Key valuation metrics include a P/E ratio of 23.14, price-to-book ratio of 2.84, and EPS of $3.27. The company reports a profit margin of 3.0% and return on equity of 12.3%.
HSIC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $9.21B |
| P/E Ratio | 23.14 |
| EPS | $3.27 |
| P/B Ratio | 2.84 |
| P/S Ratio | 0.70 |
| EV/EBITDA | 12.68 |
| Profit Margin | 3.0% |
| Return on Equity | 12.3% |
| Debt/Equity | 1.06 |
HSIC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.99B | $694.73M |
| FY20 | $10.12B | $404.00M |
| FY21 | $12.40B | $631.00M |
| FY22 | $12.65B | $538.00M |
| FY23 | $12.34B | $416.00M |
| FY24 | $12.67B | $390.00M |
| FY25 | $13.18B | $398.00M |
Henry Schein Inc (HSIC) Valuation
Based on GoodMoat's DCF model, Henry Schein Inc has a fair value estimate of $235.74. At the current price of $78.22, the stock appears 66.8% undervalued relative to our intrinsic value estimate.
HSIC Quality Indicators
Henry Schein Inc maintains a profit margin of 3.0% and an operating margin of 5.0%. Return on equity stands at 12.3%. The current ratio is 1.38. Debt-to-equity ratio is 1.06.
About Henry Schein Inc
Henry Schein, Inc. is a solutions company for health care professionals powered by a network of people and technology. With more than 25,000 Team Schein Members worldwide, the Company's network of trusted advisors provides more than 1 million customers globally with more than 300 valued solutions that help improve operational success and clinical outcomes. Our Business, Clinical, Technology, and Supply Chain solutions help office based dental and medical practitioners work more efficiently so they can provide quality care more effectively. These solutions also support dental laboratories, government and institutional health care clinics, as well as other alternate care sites. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 300,000 branded products and Henry Schein corporate brand products in our distribution centers. A FORTUNE 500 Company and a member of the S&P 500® index, Henry Schein is headquartered in Melville, N.Y., and has operations or affiliates in 33 countries and territories. The Company's sales reached $12.7 billion in 2024 and have grown at a compound annual rate of approximately 11.2 percent since Henry Schein became a public company in 1995.
HSIC Free Cash Flow
Henry Schein Inc generated $521.00M in trailing twelve-month free cash flow, representing an FCF yield of 5.66%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
HSIC Shares Outstanding
Henry Schein Inc has 0.12 billion shares outstanding at a share price of $78.22, giving it a market capitalization of $9.21B.
HSIC Recent Insider Trades
Recent insider transactions at Henry Schein Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| KUEHN KURT P (Director) | SELL | 2,844 | $224565.08 |
| LASKAWY PHILIP A (Director) | SELL | 2,844 | $228543.84 |
| MLOTEK MARK E (EVP, Chief Strategic Officer) | SELL | 4,100 | $331259.50 |