tiprankstipranks
Trending News
More News >
Henry Schein (HSIC)
NASDAQ:HSIC

Henry Schein (HSIC) AI Stock Analysis

Compare
397 Followers

Top Page

HS

Henry Schein

(NASDAQ:HSIC)

Rating:74Outperform
Price Target:
$79.00
▲(12.23%Upside)
Henry Schein's overall stock score is driven by its stable financial performance and strategic initiatives, bolstered by recent corporate events. However, modest revenue growth and a valuation without dividend yield slightly limit its attractiveness. Technical indicators suggest neutral momentum, while earnings call insights affirm confidence amid challenges.
Positive Factors
Cost Management
Management's in-flight cost-cutting plan meant that there was room for OpEx management upside, which came through and led to the bottom line outperformance.
Financial Guidance
Management fully affirmed its previous FY/25 financial guidance.
Revenue Growth
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 revenue of $3.17 billion fell slightly short of the expectation of $3.21 billion.

Henry Schein (HSIC) vs. SPDR S&P 500 ETF (SPY)

Henry Schein Business Overview & Revenue Model

Company DescriptionHenry Schein, Inc. is a leading global distributor of healthcare products and services to office-based dental and medical practitioners. The company operates in two main sectors: healthcare distribution and technology. It offers a comprehensive range of products, including dental supplies, medical supplies, and equipment, as well as value-added services such as practice management software solutions and consulting services. With a strong global presence and a focus on providing innovative solutions, Henry Schein supports healthcare professionals in delivering quality care to their patients.
How the Company Makes MoneyHenry 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 Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 7.79%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The call reflects a balanced mix of positive momentum in high-margin businesses and growth in home solutions, offset by challenges such as foreign exchange headwinds and declines in certain segments like US dental equipment sales. Despite these challenges, the company maintains a stable outlook with continued strategic achievements.
Q1-2025 Updates
Positive Updates
Record Operating Income from High-Margin Businesses
Operating income from high-growth, high-margin businesses is expected to contribute over half of the total operating income by the end of the strategic planning cycle in 2027.
Solid Growth in Home Solutions Business
The home solutions business had a strong quarter with total sales growth of 23%, including 9% internal growth.
Successful Implementation of Cost Reduction Initiatives
Achieved an annual run rate savings at the high end of the $75 million to $100 million goal by the end of 2025.
Positive Momentum in Equipment Orders
Equipment orders are very much in line with expectations, showing healthy demand for both traditional and digital equipment.
Strong Growth in Global Technology Group
Operating income grew 24% versus the prior year, reflecting strong expense management and growth in practice management systems.
Negative Updates
Headwind from Foreign Currency Exchange
First quarter sales were impacted by a 1.5% decrease attributable to foreign currency exchange.
US Dental Equipment Sales Decline
US dental equipment sales declined 8.9% due to a difficult year-over-year comparison with prior deferrals.
Challenges in International Markets
International dental merchandise sales were offset by softness in France, and the US implant market showed signs of being slightly down.
Restructuring Expenses Impact
Restructuring expenses in the first quarter were $25 million, impacting the quarter's financials.
Company Guidance
In the first quarter of 2025, Henry Schein reported robust financial performance despite macroeconomic challenges, with global sales reaching $3.2 billion. The company experienced a slight decline of 0.1% in total sales compared to the first quarter of 2024, significantly impacted by a 1.5% decrease due to foreign currency exchange rates. However, excluding the effects of PPE and COVID test kit sales, constant currency sales growth was approximately 2%. The company maintained its full-year guidance range of 2% to 4% sales growth, with a focus on achieving high single-digit to low double-digit earnings growth. The non-GAAP operating margin improved by 14 basis points to 7.25%, driven by restructuring initiatives and lower operating expenses. The company also expects operating income from high-growth, high-margin businesses to contribute over half of its total operating income by 2027. In terms of financial guidance, Henry Schein reiterated its non-GAAP diluted EPS range of $4.80 to $4.94 for 2025, with adjusted EBITDA expected to grow in the mid-single digits.

Henry Schein Financial Statement Overview

Summary
Henry Schein demonstrates solid financial performance with stable revenue growth and operational efficiency. However, increased debt levels and slight declines in net income are concerns. The company maintains a healthy cash flow position, providing a buffer against potential financial risks.
Income Statement
75
Positive
Henry Schein shows a modest revenue growth with a slight increase in total revenue from $12.34B to $12.67B from 2023 to 2024. The gross profit margin remains steady, but the net income has slightly decreased, impacting the net profit margin negatively. The EBIT and EBITDA margins have shown resilience, indicating stable operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a moderate debt-to-equity ratio due to increased debt levels, which could pose a risk if not managed effectively. However, the equity ratio remains healthy, suggesting that the company is maintaining a solid equity base relative to its assets. The return on equity has slightly declined due to reduced net income.
Cash Flow
80
Positive
The company's cash flow statement reveals a strong operating cash flow, which has significantly improved from the previous year, leading to robust free cash flow growth. This improvement indicates effective cash management, although the free cash flow to net income ratio has been under some pressure due to lower net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.67B12.34B12.65B12.40B10.12B
Gross Profit
4.02B3.86B3.83B3.67B2.81B
EBIT
621.00M615.00M747.00M851.66M535.30M
EBITDA
941.00M877.00M1.09B1.07B726.81M
Net Income Common Stockholders
390.00M416.00M538.00M631.00M403.79M
Balance SheetCash, Cash Equivalents and Short-Term Investments
122.00M171.00M117.00M117.97M421.19M
Total Assets
10.22B10.57B8.61B8.48B7.77B
Total Debt
2.87B2.74B1.50B1.22B1.00B
Net Debt
2.75B2.57B1.38B1.10B581.23M
Total Liabilities
5.38B5.42B3.94B4.42B3.79B
Stockholders Equity
3.39B3.65B3.45B3.43B3.35B
Cash FlowFree Cash Flow
661.00M313.00M506.00M630.57M550.08M
Operating Cash Flow
848.00M500.00M602.00M709.58M598.91M
Investing Cash Flow
-430.00M-1.14B-276.00M-677.22M-115.02M
Financing Cash Flow
-510.00M701.00M-315.00M-332.96M-187.19M

Henry Schein Technical Analysis

Technical Analysis Sentiment
Positive
Last Price70.39
Price Trends
50DMA
67.95
Positive
100DMA
71.30
Negative
200DMA
71.29
Negative
Market Momentum
MACD
0.95
Positive
RSI
52.26
Neutral
STOCH
18.37
Positive
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 70.39 is below the 20-day moving average (MA) of 70.71, above the 50-day MA of 67.95, and below the 200-day MA of 71.29, indicating a neutral trend. The MACD of 0.95 indicates Positive momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSIC.

Henry Schein Risk Analysis

Henry Schein disclosed 30 risk factors in its most recent earnings report. Henry Schein reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our business could be affected by activist investors. Q4, 2024
2.
We may be unsuccessful in achieving our strategic growth objectives. Q4, 2024
3.
Our business could be affected by the recently signed Strategic Partnership Agreement. Q4, 2024

Henry Schein Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
COCOR
76
Outperform
$56.51B33.84161.58%0.74%12.18%-5.92%
MCMCK
76
Outperform
$90.30B28.0651.23%0.38%16.22%15.29%
74
Outperform
$8.59B21.8811.78%1.75%8.76%
CACAH
68
Neutral
$37.05B24.24-43.80%1.30%0.78%183.45%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
OMOMI
44
Neutral
$486.50M-49.91%2.84%-828.91%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSIC
Henry Schein
70.39
1.79
2.61%
COR
Cencora
289.02
54.38
23.18%
CAH
Cardinal Health
154.07
57.00
58.72%
MCK
McKesson
709.46
125.98
21.59%
OMI
Owens & Minor
6.66
-11.01
-62.31%

Henry Schein Corporate Events

Executive/Board ChangesShareholder Meetings
Henry Schein Approves Key Proposals at Annual Meeting
Positive
May 23, 2025

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.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Henry Schein Completes $250M Deal with KKR
Positive
May 16, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Henry Schein Updates Strategic Partnership with KKR
Neutral
May 2, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Henry Schein Adopts New Executive Severance Plan
Neutral
Apr 15, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Henry Schein Announces Leadership Transition in 2025
Neutral
Mar 14, 2025

On March 11, 2025, Henry Schein, Inc. announced that James P. Breslawski, the company’s President, will transition from his role effective April 1, 2025. He will take on a new position as Senior Advisor while remaining on the Executive Management Committee, signaling a strategic shift in leadership roles within the company.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.