Henry Schein (HSIC) AI Stock Analysis

• Market Cap: $8.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.38
• Revenue Growth: 2.71%
• EPS Growth: -3.26%
• Country: US
• Employees: 25,000
• Sector: Healthcare
• Sector Strength: 70
• Industry: Medical - Distribution
• EPS (TTM): 3.05
• Shares Outstanding: 122,511,950
• 10 Day Avg. Volume: 1,093,490
• 30 Day Avg. Volume: 1,348,748
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $77.10
• Price Target Upside: 18.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Henry Schein exhibits a stable financial performance with strong cash flow and operational efficiency, although increased debt levels pose a risk. The technical analysis suggests a bearish trend, which is a concern. Valuation is moderate, and the recent earnings call and corporate partnership with KKR provide a balanced outlook with potential for modest growth. Overall, the stock presents a stable but cautious investment opportunity.

Positive Factors

Market Strategy

Henry Schein’s strategy to focus the business around higher-growth/higher-margin assets leveraging a favorable position in the supply chain and optimizing distribution costs will likely bolster profitability over time.

Specialty Segment Performance

Specialty segment growth was a bright spot in the quarter, with 4Q organic growth up 5% driven by strength across implants, biomaterial products, and endodontics.

Strategic Investments

KKR's 12% investment in shares of HSIC is seen as positive for the company, as it shows confidence in the long-term outlook for HSIC beyond 2025.

Negative Factors

Dental Market Conditions

The core Dental/Medical distribution businesses remain soft, with no clear signs of improvement in the dental markets near-term.

Earnings Guidance

The quarterly EPS contribution is expected to be more back-end-loaded in 2025, which is a primary reason for HSIC's stock underperformance.

Revenue Expectations

Total revenue of $3.19 billion (+5.8% as reported) fell significantly short of the original expectation of $3.35 billion.

Henry Schein Business Overview & Revenue Model

Company Description

Henry Schein, Inc. is a leading global distributor of healthcare products and services to office-based dental and medical practitioners. The company operates in two key sectors: healthcare distribution and technology and value-added services. Henry Schein offers a comprehensive selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as over 180,000 additional products available as special-order items. Their product range includes consumable products, equipment, and technology solutions, and services such as practice management software, e-commerce solutions, and supply chain management services.

How the Company Makes Money

Henry Schein generates revenue primarily through the sale of healthcare products and services to dental and medical practitioners. Its revenue model is diversified across various streams, including the direct sale of consumable medical and dental supplies, high-tech dental and medical equipment, and pharmaceuticals. Additionally, the company earns through its technology and value-added services segment, which provides practice management software and other digital solutions. Significant partnerships with manufacturers and healthcare providers enhance their distribution network and market reach, contributing to stable revenue growth. The company's extensive catalog and ability to supply a wide range of healthcare products and services make it a preferred distributor in the healthcare industry.

Henry Schein Financial Statement Overview

Summary

Overall, Henry Schein demonstrates solid financial performance with stable revenue growth and operational efficiency. While there are concerns about increased debt levels and slight declines in net income, the company maintains a healthy cash flow position, which provides a buffer against potential financial risks. The financial health appears stable, but continuous monitoring of debt levels and profitability is advisable.

Income Statement

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.67B	12.34B	12.65B	12.40B	10.12B
	Gross Profit
4.02B	3.86B	3.83B	3.67B	2.81B
	EBIT
621.00M	615.00M	747.00M	851.66M	535.30M
	EBITDA
941.00M	877.00M	1.09B	1.07B	726.81M
	Net Income Common Stockholders
390.00M	416.00M	538.00M	631.00M	403.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
122.00M	171.00M	117.00M	117.97M	421.19M
	Total Assets
10.22B	10.57B	8.61B	8.48B	7.77B
	Total Debt
2.87B	2.74B	1.50B	1.22B	1.00B
	Net Debt
2.75B	2.57B	1.38B	1.10B	581.23M
	Total Liabilities
5.38B	5.42B	3.94B	4.42B	3.79B
	Stockholders Equity
3.39B	3.65B	3.45B	3.43B	3.35B
Cash Flow		Free Cash Flow
661.00M	313.00M	506.00M	630.57M	550.08M
	Operating Cash Flow
848.00M	500.00M	602.00M	709.58M	598.91M
	Investing Cash Flow
-430.00M	-1.14B	-276.00M	-677.22M	-115.02M
	Financing Cash Flow
-510.00M	701.00M	-315.00M	-332.96M	-187.19M

Henry Schein Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.97
• 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 Negative. The current price of 64.97 is below the 20-day moving average (MA) of 65.08, below the 50-day MA of 69.28, and below the 200-day MA of 71.25, indicating a bearish trend. The MACD of -1.08 indicates Negative momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSIC.

Henry Schein Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCK	77 Outperform	$89.33B	32.67	51.23%	0.39%	14.29%	-1.20%
COR	73 Outperform	$56.75B	41.64	245.32%	0.73%	11.64%	-23.54%
HSIC	69 Neutral	$8.03B	21.48	11.07%	―	2.71%	-3.26%
CAH	65 Neutral	$34.13B	26.37	-43.80%	1.44%	2.85%	110.82%
Sector *	52 Neutral	$5.38B	3.59	-41.63%	2.87%	17.72%	1.87%
OMI	42 Neutral	$545.42M	―	-48.70%	―	3.55%	-757.75%

Henry Schein Corporate Events

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.

Spark’s Take on HSIC Stock

According to Spark, TipRanks’ AI Analyst, HSIC is a Outperform.

Henry Schein exhibits a stable financial performance with solid cash flow and operational efficiency. However, increased debt levels and valuation concerns present risks. The recent strategic partnership with KKR and positive earnings guidance provide growth potential, while technical indicators suggest caution in the short term. Overall, the stock is positioned for moderate growth with some risk factors to consider.

To see Spark’s full report on HSIC stock, click here.

Henry Schein Announces Leadership Transition in 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.