Henry Schein (HSIC) AI Stock Analysis

• Market Cap: $8.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.37
• Revenue Growth: 1.75%
• EPS Growth: 8.76%
• Country: US
• Employees: 25,000
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Distribution
• EPS (TTM): 1.15
• Shares Outstanding: 121,719,540
• 10 Day Avg. Volume: 1,764,116
• 30 Day Avg. Volume: 1,579,811
• PEG Ratio: 3.93
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.91
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 3.01
• Enterprise Value/Ebitda: 3.20
• 1Y Price Target: $73.57
• Price Target Upside: 1.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $79.00 ▲(8.53%Upside)

Henry Schein's overall stock score reflects a strong financial foundation and positive corporate events that support strategic growth. While technical analysis and valuation indicate mixed signals, the company's stable earnings outlook and effective governance enhancements are significant positive factors.

Positive Factors

Earnings

Schein delivered $1.15 in non-GAAP EPS in the quarter, which represented a strong beat versus our Street-low $1.04 estimate and a solid beat versus the consensus estimate of $1.11.

Financial Guidance

Management reiterated full-year guidance ranges, suggesting confidence in the company's future performance despite a challenging start.

Strategic Initiatives

KKR's recent board addition and expertise in the dental ecosystem is likely to lead to opportunities to accelerate revenue growth.

Negative Factors

Consumer Sentiment

There is some uncertainty if worsening consumer sentiment will translate to lower dental spend.

Market Conditions

There is no visible pathway to near-term/medium-term upside in what remains choppy macro conditions for dental as a whole.

Revenue Performance

Total/organic 1Q global growth of +0.2%/(0.1)% came in below expectations and the FY25 guidance range.

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 makes money primarily through the distribution of healthcare products and services. The company's revenue model is built on selling dental and medical supplies, equipment, and pharmaceuticals to healthcare practitioners. A significant portion of its revenue comes from the sale of consumables and equipment in the dental and medical segments. Additionally, Henry Schein generates income from technology and value-added services, including practice management software, e-commerce solutions, and consulting services. Key revenue streams include direct sales to healthcare providers and partnerships with manufacturers and suppliers, which enable the company to offer a broad portfolio of products. The company's global reach and strong distribution network contribute significantly to its earnings by ensuring efficient and timely delivery of products to its customers.

Henry Schein Financial Statement Overview

Summary

Henry Schein is financially stable with consistent profitability and efficient cash flow management. While revenue growth is modest, the company maintains healthy margins and a balanced capital structure. Effective cash flow operations support financial stability, though attention to revenue growth is necessary for sustained future profitability.

Income Statement

The company exhibits stable gross and net profit margins with a Gross Profit Margin of 31.1% and a Net Profit Margin of 3.2% for TTM. Revenue growth has plateaued recently, with a slight decline in TTM revenue compared to the previous year. EBIT and EBITDA margins remain healthy at 5.2% and 7.7%, respectively, indicating operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio stands at 0.97, reflecting moderate leverage. The Return on Equity (ROE) is 12.3%, showcasing decent profitability on equity, though it has decreased over time. The Equity Ratio of 31.6% indicates a balanced approach to financing between debt and equity.

Cash Flow

The company demonstrates strong cash flow management with an Operating Cash Flow to Net Income Ratio of 1.69 for TTM, indicating robust cash generation from operations. Free Cash Flow has seen a decline in growth, but remains positive at $518 million, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.67B	12.67B	12.34B	12.65B	12.40B	10.12B
Gross Profit	3.94B	4.02B	3.86B	3.83B	3.67B	2.81B
EBITDA	978.00M	941.00M	877.00M	1.09B	1.07B	726.81M
Net Income	407.00M	390.00M	416.00M	538.00M	631.00M	403.79M
Balance Sheet
Total Assets	10.48B	10.22B	10.57B	8.61B	8.48B	7.77B
Cash, Cash Equivalents and Short-Term Investments	127.00M	122.00M	171.00M	117.00M	117.97M	421.19M
Total Debt	3.22B	2.87B	2.74B	1.50B	1.22B	1.00B
Total Liabilities	5.76B	5.38B	5.42B	3.94B	4.42B	3.79B
Stockholders Equity	3.31B	3.39B	3.65B	3.45B	3.43B	3.35B
Cash Flow
Free Cash Flow	518.00M	661.00M	313.00M	506.00M	630.57M	550.08M
Operating Cash Flow	688.00M	848.00M	500.00M	602.00M	709.58M	598.91M
Investing Cash Flow	-618.00M	-430.00M	-1.14B	-276.00M	-677.22M	-115.02M
Financing Cash Flow	-109.00M	-510.00M	701.00M	-315.00M	-332.96M	-187.19M

Henry Schein Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.79
• 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 72.79 is above the 20-day moving average (MA) of 71.14, above the 50-day MA of 69.14, and above the 200-day MA of 71.36, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 77.21 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
COR	78 Outperform	$56.82B	34.02	161.58%	0.75%	12.18%	-5.92%
MCK	76 Outperform	$89.73B	28.02	51.23%	0.39%	16.22%	15.29%
HSIC	71 Outperform	$8.86B	22.63	11.78%	―	1.75%	8.76%
CAH	70 Outperform	$39.08B	25.64	-43.80%	1.23%	0.78%	183.45%
Sector *	51 Neutral	$7.39B	0.31	-61.07%	2.34%	17.46%	1.71%
OMI	51 Neutral	$602.19M	―	-49.91%	―	2.84%	-828.91%

Henry Schein Corporate Events

Henry Schein Amends $750M Term Loan Agreement

On June 6, 2025, Henry Schein, Inc. amended and restated its existing $750 million term loan credit agreement and $1 billion revolving credit agreement. These amendments extend the termination date of the term loan to June 6, 2030, and modify certain financial definitions and covenants. The company plans to utilize these facilities for working capital, general corporate purposes, capital expenditures, stock repurchase, refinancing existing debt, and potential acquisitions. The agreements include customary representations, warranties, covenants, and events of default, impacting the company’s operational flexibility and financial strategies.

The most recent analyst rating on (HSIC) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Approves Key Proposals at Annual Meeting

On May 22, 2025, Henry Schein, Inc. held its 2025 Annual Meeting of Stockholders where key proposals were approved, including the election of twelve directors for terms expiring in 2026, and the election of Max Lin and William K. ‘Dan’ Daniel as directors. The meeting also saw the approval of the 2024 compensation for Named Executive Officers and the ratification of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 27, 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (HSIC) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Completes $250M Deal with KKR

On May 16, 2025, Henry Schein, Inc. completed a $250 million strategic investment deal with KKR, making KKR the holder of approximately 12% of Henry Schein’s common shares. This investment is part of a strategic partnership agreement that also led to the appointment of William K. ‘Dan’ Daniel to Henry Schein’s Board of Directors. Daniel, an Executive Advisor at KKR, brings over three decades of leadership experience in the industrial and healthcare sectors. His appointment, alongside Max Lin from KKR, is expected to support Henry Schein’s strategic growth and long-term value creation for stakeholders.

The most recent analyst rating on (HSIC) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Henry Schein stock, see the HSIC Stock Forecast page.

Henry Schein Updates Strategic Partnership with KKR

On May 2, 2025, Henry Schein, Inc. and KKR Hawaii Aggregator L.P. entered into a letter agreement to remove KKR’s voting commitment from their Strategic Partnership Agreement, while maintaining all other terms. Additionally, Max Lin was appointed to Henry Schein’s board of directors as an independent director, following the satisfaction of regulatory conditions. Lin, a partner at KKR, will serve on the Nominating and Governance Committee and the Strategic Advisory Committee, bringing extensive experience from his roles in healthcare and private equity.

Henry Schein Adopts New Executive Severance Plan

On April 10, 2025, Henry Schein, Inc. announced the adoption of an Executive Severance Plan and an amended Executive Change in Control Plan. These plans are designed to provide severance benefits to certain executive-level employees under specific circumstances, such as termination without cause or resignation for good reason. The plans include provisions for base salary continuation, pro-rated bonuses, and other benefits, while incorporating restrictive covenants and clawback policies to protect the company’s interests.