Henry Schein (HSIC) AI Stock Analysis

• Market Cap: $9.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.29
• Revenue Growth: 3.51%
• EPS Growth: 29.65%
• Country: US
• Employees: 25,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 1.34
• Shares Outstanding: 114,704,124
• 10 Day Avg. Volume: 1,389,561
• 30 Day Avg. Volume: 1,278,409
• PEG Ratio: 3.22
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 16.05
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 13.27
• 1Y Price Target: $87.92
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.33
• Revenue Forecast (FY): $13.71B

• Rating: 65 Neutral
• Price Target: $90.00 ▲(10.61% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is anchored by stable (but leveraged) fundamentals with strong 2025 free-cash-flow improvement, plus supportive technical momentum. These positives are moderated by a relatively full P/E and earnings-call risks around margin mix, restructuring uncertainty, and external pressures (tariffs/medical demand), despite constructive 2026 growth guidance and value-creation targets.

Positive Factors

Free Cash Flow Strength

A sharp FCF rebound to roughly $573M in 2025 materially strengthens Henry Schein’s ability to fund operations, M&A, and buybacks without relying solely on markets. Durable cash generation improves financial optionality, supports deleveraging and long-term capital allocation decisions despite prior variability.

SaaS, Tech & Equipment Momentum

Sustained growth in cloud/SaaS and digital equipment shifts revenue mix toward recurring and higher-value services. Increasing Dentrix Ascend adoption and equipment unit growth create sticky relationships and cross-sell opportunities, enhancing revenue visibility and long-run margin potential versus pure consumables distribution.

Value‑Creation & Capital Allocation

Explicit operating‑income improvement targets and a large remaining buyback authorization signal disciplined execution and shareholder focus. If delivered, these initiatives can structurally lift margins and returns on capital, converting operational gains into persistent earnings and improving cash returns to shareholders.

Negative Factors

Rising Leverage

Material increase in debt levels reduces balance‑sheet flexibility and increases sensitivity to interest rates or cyclicality in healthcare spending. Higher leverage constrains capital deployment choices, raises refinancing risk, and makes earnings more vulnerable to shocks, limiting resilience over the medium term.

Gross Margin Pressure

Faster growth in lower‑margin categories (value implants, certain consumables) and ASP pressure in tech categories compress gross margins. A persistent shift toward lower‑margin volume can offset revenue gains and requires sustained cost or pricing actions to preserve operating margins over the next several quarters.

Restructuring & Execution Uncertainty

Significant 2025 restructuring charges and the company’s inability to quantify future restructuring costs create execution and forecasting risk. Benefits are back‑half weighted and may be offset by upfront investments, uncertain remeasurement gains, and tariff exposure, reducing near‑term predictability of margin recovery.

Henry Schein Business Overview & Revenue Model

Company Description

Henry Schein, Inc. provides health care products and services to dental practitioners and laboratories, physician practices, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products comprising branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners. This segment also provides value-added practice solutions, which comprise financial services on a non-recourse basis, e-services, practice technology, network, and hardware services, as well as continuing education services for practitioners, and consulting and other services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.

How the Company Makes Money

Henry Schein generates revenue through several key streams: the sale of dental, medical, and animal health products, which includes consumables, equipment, and pharmaceuticals. Additionally, the company offers services such as practice management software, e-commerce solutions, and logistics services, which contribute significantly to its earnings. Henry Schein also benefits from partnerships with leading manufacturers and suppliers in the health care industry, allowing it to provide a comprehensive portfolio of products and solutions. The company's extensive distribution network and customer loyalty programs further enhance its revenue generation capabilities.

Henry Schein Financial Statement Overview

Summary

Financials are steady but not exceptional: revenue growth is modest and relatively stable, profitability has softened versus earlier years, and leverage has increased meaningfully. Offsetting this, free cash flow is a clear strength with a strong rebound in 2025, though cash flow has been somewhat variable year-to-year.

Income Statement

Revenue has been relatively steady with modest growth recently (about 2.7% in 2024 and ~1.9% in 2025 after a dip in 2023). Profitability is positive but has softened versus earlier years: net income was roughly flat from 2023–2025, and net margins were stronger in 2021–2022 than in 2023–2024. Overall, the income statement reflects a stable distributor profile with moderate growth and some margin pressure.

Balance Sheet

Leverage has increased meaningfully: total debt rose from about $1.0B in 2020 to $3.7B in 2025, and debt-to-equity moved higher from ~0.30 (2020) to ~0.85 (2024). Equity has been broadly stable to slightly lower versus 2023, which limits balance-sheet flexibility. Returns on equity were healthy in 2021–2022 but eased in 2023–2024, consistent with lower profitability and higher leverage.

Cash Flow

Cash generation is a relative strength: free cash flow improved sharply in 2025 (up ~50% to ~$573M) after volatility in 2022–2024. Free cash flow has generally tracked earnings well in the years provided (for example, free cash flow was ~0.71–0.89x net income in 2021–2024), supporting quality of earnings. The main weakness is variability in operating and free cash flow year-to-year, which reduces predictability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.18B	12.67B	12.34B	12.65B	12.40B
Gross Profit	3.84B	3.77B	3.65B	3.65B	3.67B
EBITDA	1.01B	941.00M	877.00M	977.00M	1.07B
Net Income	398.00M	390.00M	416.00M	538.00M	623.91M
Balance Sheet
Total Assets	11.21B	10.22B	10.57B	8.61B	8.48B
Cash, Cash Equivalents and Short-Term Investments	156.00M	122.00M	171.00M	117.00M	118.00M
Total Debt	3.69B	2.87B	2.74B	1.50B	1.22B
Total Liabilities	6.42B	5.38B	5.42B	3.94B	3.81B
Stockholders Equity	3.25B	3.39B	3.65B	3.45B	3.42B
Cash Flow
Free Cash Flow	573.00M	661.00M	353.00M	506.00M	630.57M
Operating Cash Flow	712.00M	848.00M	500.00M	602.00M	709.58M
Investing Cash Flow	-477.00M	-430.00M	-1.14B	-276.00M	-677.22M
Financing Cash Flow	-111.00M	-510.00M	701.00M	-315.00M	-332.96M

Henry Schein Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSIC, the sentiment is Positive. The current price of 81.37 is above the 20-day moving average (MA) of 79.13, above the 50-day MA of 77.90, and above the 200-day MA of 71.76, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSIC.

Henry Schein Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCK	74 Outperform	$121.38B	28.40	―	0.37%	17.23%	66.17%
CAH	73 Outperform	$54.09B	32.99	―	0.98%	4.37%	28.48%
PBH	73 Outperform	$3.24B	18.12	11.29%	―	-0.02%	-1.87%
COR	66 Neutral	$72.49B	44.76	152.25%	0.66%	9.31%	5.92%
HSIC	65 Neutral	$9.33B	24.88	11.39%	―	3.51%	29.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Henry Schein Corporate Events

Henry Schein appoints new CEO amid governance changes

On January 10, 2026, Henry Schein’s board appointed Frederick M. Lowery as chief executive officer effective March 2, 2026, expanding the board from 14 to 15 members to add him as a director while long-serving CEO Stanley M. Bergman, who has led the company for 35 years, transitions to the role of non-CEO chairman to oversee a managed leadership handover. Lowery, a 54-year-old industry veteran with more than two decades of healthcare distribution and operational experience at Thermo Fisher Scientific and earlier roles at Maytag and General Motors, has been brought in to drive Henry Schein’s next phase of growth and execution of its BOLD+1 strategy, supported by a substantial employment package, inclusion in an expanded executive severance plan, and by-law changes that formally separate the CEO role from the positions of president and chairman—moves that together signal a deliberate modernization of the company’s governance and leadership structure with potential implications for shareholder value and strategic execution.

The most recent analyst rating on (HSIC) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Board Advances CEO Succession and Transition

On December 23, 2025, Henry Schein announced that its board expects to appoint a new chief executive officer by mid-January 2026, marking the final phase of a succession process closely watched by investors given the company’s size and role in global health care distribution. Until the successor takes over, long-serving CEO and chairman Stanley M. Bergman will remain in his roles under an extended employment agreement, a move designed to ensure leadership continuity and a smooth transition while the board completes its evaluation of a strong slate of candidates, signaling stability in the company’s strategic direction for customers, employees, and other stakeholders.

The most recent analyst rating on (HSIC) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Extends Private Placement Facilities to 2028

On December 19, 2025, Henry Schein, Inc. amended multiple existing private placement shelf facilities with institutional investors including Prudential, New York Life, MetLife, and Corebridge to extend their scheduled facility termination dates from prior maturities to December 19, 2028 and to adjust certain financial definitions and covenants. These amendments are designed to preserve and extend the company’s access to long-term private financing, supporting balance sheet flexibility and potentially strengthening its funding position within the health care products distribution sector, with implications for the stability and predictability of its capital structure for lenders and other stakeholders.

The most recent analyst rating on (HSIC) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Extends Strategic Partnership with KKR

On December 7, 2025, Henry Schein, Inc. announced that KKR Hawaii Aggregator L.P., acting as Investor Representative, has exercised its Extension Election under their Strategic Partnership Agreement. As a result, the company’s Board of Directors will renominate the Investor’s designees, Max Lin and William K. “Dan” Daniel, for election at the 2026 Annual Meeting, with their terms set to expire at the 2027 annual meeting of stockholders.

The most recent analyst rating on (HSIC) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.