HSIC Fair Value Estimate
$235.74201.4% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
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) Valuation
GoodMoat Analysis
The current price of Henry Schein appears deeply undervalued relative to the GoodMoat Target, offering a significant margin of safety. However, its valuation multiples are broadly in line with its sector and its own historical P/E, presenting a mixed picture that requires deeper analysis of business quality.
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The GoodMoat Target of $237.87 implies the stock is trading at a 68.5% discount, which falls into the 'Deeply Undervalued' band (>40% margin of safety) per the framework's DCF guidelines. This suggests a substantial potential upside based on the platform's intrinsic value model. On a relative basis, the P/E of 21.96x is slightly above the sector average of 21.5x and is near the middle of its own 5-year historical range, indicating it is neither cheap nor expensive compared to these benchmarks. The 6.0% Free Cash Flow Yield is a favourable sign, suggesting the market price is supported by solid cash generation. For a value investor, the massive discount to the target price is the most compelling factor, but it must be reconciled with the company's modest 7.7% revenue growth and 3.0% profit margin. The stock's valuation is not cheap on a standalone P/E basis, but the significant implied margin of safety from the target price warrants a closer examination of the underlying business quality and moat to understand the discrepancy. Analysis based on data as of 2024-05-15.
HSIC Valuation Metrics
FCF$521.00M
FCF Growth Rate-1.71%
EPS Growth (CAGR)-8.87%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →HSIC Valuation & Fair Value Analysis
Henry Schein Inc (HSIC) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Henry Schein Inc is $235.74. The current stock price is $78.22, suggesting the stock is 201.4% undervalued.
The price-to-earnings (P/E) ratio is 23.14. Price-to-book ratio is 2.84. Price-to-sales ratio is 0.70. Enterprise value to EBITDA is 12.68. PEG ratio is 1.74.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Henry Schein Inc's intrinsic value.