Read This to Understand Henry Schein (HSIC)

By Susan Ramirez • Sunday, July 27 09:59 • Permanent Link

Henry Schein shares fell by -1.6% during the day's morning session, and are now trading at a price of $71.46. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

an Increase in Expected Earnings Improves Its Value Outlook but Trades Above Its Graham Number:

Henry Schein, Inc. provides health care products and services to office-based dental and medical practitioners, and alternate sites of care worldwide. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Henry Schein has a trailing 12 month P/E ratio of 22.3 and a P/B ratio of 2.64.

Henry Schein has moved -0.0% over the last year compared to 16.9% for the S&P 500 — a difference of -16.9%. Henry Schein has a 52 week high of $82.49 and a 52 week low of $60.56.

The Firm Has a Declining EPS Growth Trend:

	2019	2020	2021	2022	2023	2024
Revenue (M)	$9,986	$10,119	$12,401	$12,647	$12,339	$12,673
Gross Margins	31%	28%	30%	30%	31%	32%
Net Margins	7%	4%	5%	4%	3%	3%
Net Income (M)	$695	$404	$631	$566	$416	$390
Net Interest Expense (M)	$51	$41	$27	-$44	$87	$131
Depreciation & Amort. (M)	$185	$186	$210	$212	$209	$83
Diluted Shares (M)	149	143	142	138	132	128
Earnings Per Share	$4.65	$2.82	$4.45	$3.91	$3.16	$3.05
EPS Growth	n/a	-39.35%	57.8%	-12.13%	-19.18%	-3.48%
Avg. Price	$64.34	$62.01	$74.18	$82.4	$69.13	$71.46
P/E Ratio	13.69	21.91	16.45	21.07	21.74	23.28
Free Cash Flow (M)	$578	$550	$631	$506	$353	$700
CAPEX (M)	$76	$49	$79	$96	$147	$148
EV / EBITDA	11.48	12.62	10.61	12.75	13.34	15.55
Total Debt (M)	$733	$626	$822	$1,046	$2,087	$1,886
Net Debt / EBITDA	0.69	0.28	0.66	0.97	2.33	2.51
Current Ratio	1.58	1.66	1.67	1.79	1.67	1.42

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.