Henry Schein (HSIC) AI Stock Analysis

• Market Cap: $8.37B
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.37
• Revenue Growth: 2.29%
• EPS Growth: 14.98%
• Country: US
• Employees: 25,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 1.10
• Shares Outstanding: 121,268,394
• 10 Day Avg. Volume: 1,764,618
• 30 Day Avg. Volume: 2,002,237
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $74.36
• Price Target Upside: 7.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: $76.00 ▲(10.05% Upside)

Henry Schein's overall stock score reflects a stable financial position with growth potential, supported by strategic initiatives and successful restructuring. However, challenges in cash flow and market uncertainties weigh on the score. The leadership transition is a notable event, but the company's strategic direction remains positive.

Positive Factors

E-commerce Launch

The coming launch of the new e-commerce site could position Schein well to deliver on its long-term goals.

Financial Guidance

Management affirmed its previous FY/25 financial guidance despite the somewhat disappointing quarter.

Investment Rating

The analyst maintains an OUTPERFORM investment rating on HSIC shares, indicating confidence in the company's future performance.

Negative Factors

Earnings Performance

Schein delivered $1.10 in non-GAAP EPS, which represented a miss versus the $1.16 estimate.

Gross Margin

Lower-than-expected gross margin was the primary reason for the profitability miss.

Profitability

Operating profitability fell short of expectations, with potential drivers noted in the release being lower glove pricing in the US and promotional activity.

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, primarily by distributing a diverse range of healthcare products and services to practitioners in the dental, medical, and veterinary fields. The company earns income from the sale of consumable products, including supplies and equipment, as well as through its technology solutions, which encompass software for practice management and digital imaging. Additionally, Henry Schein benefits from value-added services such as inventory management, consulting, and training. Significant partnerships with manufacturers and suppliers enable the company to maintain a robust supply chain and competitive pricing. The company's revenue model is further supported by its extensive customer base and strong market presence across various healthcare sectors, allowing it to capitalize on ongoing demand for healthcare products and services.

Henry Schein Financial Statement Overview

Summary

Henry Schein demonstrates a stable financial position with consistent revenue and profit margins. The balance sheet is solid with manageable leverage, but there is a need to enhance cash flow generation. The company should focus on improving operational efficiency and cash flow management to strengthen its financial health further.

Income Statement

Henry Schein's income statement shows a stable revenue base with a slight growth in the TTM period. The gross profit margin is healthy at 31.1%, indicating efficient cost management. However, the net profit margin is relatively low at 3.2%, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are moderate, reflecting stable operational performance but with potential for enhanced profitability.

Balance Sheet

The balance sheet reveals a balanced financial structure with a debt-to-equity ratio of 0.97, indicating manageable leverage. The return on equity is reasonable at 11.9%, showing effective use of equity capital. The equity ratio stands at 31.6%, suggesting a solid equity base relative to total assets, though there is room for strengthening equity further.

Cash Flow

Cash flow analysis indicates challenges with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.24, highlighting potential cash generation issues. The free cash flow to net income ratio is decent at 0.75, but the negative growth trend in free cash flow is a concern that needs addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.77B	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	961.00M	941.00M	877.00M	1.08B	1.07B	726.81M
Net Income	389.00M	390.00M	416.00M	538.00M	631.00M	403.79M
Balance Sheet
Total Assets	10.91B	10.22B	10.57B	8.61B	8.48B	7.77B
Cash, Cash Equivalents and Short-Term Investments	145.00M	122.00M	171.00M	117.00M	118.00M	421.19M
Total Debt	3.36B	2.87B	2.74B	1.50B	1.22B	1.00B
Total Liabilities	6.01B	5.38B	5.42B	3.94B	3.81B	3.46B
Stockholders Equity	3.44B	3.39B	3.65B	3.45B	3.42B	3.35B
Cash Flow
Free Cash Flow	358.00M	661.00M	313.00M	506.00M	630.57M	550.08M
Operating Cash Flow	512.00M	848.00M	500.00M	602.00M	709.58M	598.91M
Investing Cash Flow	-394.00M	-430.00M	-1.14B	-276.00M	-677.22M	-115.02M
Financing Cash Flow	-52.00M	-510.00M	701.00M	-315.00M	-332.96M	-187.19M

Henry Schein Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 69.06 is above the 20-day moving average (MA) of 67.80, below the 50-day MA of 70.39, and below the 200-day MA of 71.26, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.08 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
PDCO	70 Outperform		―		―	-0.85%	-23.40%
HSIC	70 Outperform	$8.37B	22.21	11.18%	―	2.29%	14.98%
MCK	66 Neutral	$84.65B	27.09	51.23%	0.42%	20.35%	11.96%
CAH	59 Neutral	$34.87B	22.96	-43.80%	1.37%	-1.94%	85.70%
COR	58 Neutral	$56.17B	29.66	130.60%	0.76%	11.56%	5.31%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
OMI	43 Neutral	$386.99M	―	-144.11%	―	-17.10%	-2720.40%

Henry Schein Corporate Events

Henry Schein CEO Stanley Bergman Announces Retirement

On July 15, 2025, Henry Schein announced that its long-serving CEO, Stanley M. Bergman, will retire at the end of the year after 45 years with the company, including over 35 years as CEO. Bergman will remain as Chairman of the Board, and the company has initiated a search for his successor. Under Bergman’s leadership, Henry Schein grew significantly, transforming from a small dental mail-order company into a global leader in healthcare solutions. The company’s revenue increased from $225 million in 1989 to nearly $13 billion in 2024, with a market capitalization approaching $9 billion. Bergman’s strategic vision and leadership have been pivotal in positioning Henry Schein as a key player in the healthcare industry.

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.