DENTSPLY SIRONA (XRAY) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: 4.48%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -5.78%
• EPS Growth: -445.83%
• Country: US
• Employees: 14,000
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.52
• Shares Outstanding: 199,483,860
• 10 Day Avg. Volume: 2,724,424
• 30 Day Avg. Volume: 3,963,329
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 13.73
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: -9.20
• 1Y Price Target: $16.63
• Price Target Upside: 16.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 55 Neutral
• Price Target: $14.50 ▲(1.40% Upside)

DENTSPLY SIRONA's overall stock score reflects significant financial challenges, with declining revenues and profitability weighing heavily. Technical indicators suggest bearish momentum, while valuation concerns persist due to negative earnings. However, the earnings call provided some positive insights into cost management and segment growth, slightly offsetting the negative aspects.

Positive Factors

Financial performance

The company generated $936 million in net sales versus the estimate of $915 million, exceeding the consensus estimate of $930 million.

Management and Strategy

Initial impressions are positive for the future direction of the company with the new CEO focusing on improving customer support, investing in innovation, and adding value to clinicians.

Profitability

Profitability was ahead of expectations, with EBITDA margin of 21% in the quarter, helped by cost reduction programs and the Byte roll-off.

Negative Factors

Market Challenges

Organic pressure was driven by the U.S., which clearly disappointed.

Sales Decline

Reported sales were down 4.9% versus the same period last year, with a 6.7% decline on a constant currency basis.

Valuation Concerns

The price target was lowered to $18 from $21, reflecting cautious sentiment despite the maintained OUTPERFORM rating.

DENTSPLY SIRONA Business Overview & Revenue Model

Company Description

DENTSPLY SIRONA (XRAY) is a leading global manufacturer of dental products and technologies, specializing in digital imaging solutions, including X-ray systems. The company operates primarily in the dental sector, providing a wide range of products that enhance dental care and treatment. DENTSPLY SIRONA's core offerings include dental imaging equipment, CAD/CAM systems, dental consumables, and equipment for restorative, preventive, and orthodontic procedures, serving dental professionals and laboratories worldwide.

How the Company Makes Money

DENTSPLY SIRONA generates revenue through multiple streams, primarily from the sale of dental equipment and consumables. Their core revenue comes from the manufacturing and distribution of dental imaging systems, including X-ray machines and digital imaging software, which are sold to dental practices and clinics. Additional revenue is derived from dental materials and supplies, such as restorative materials and orthodontic products. The company also benefits from recurring revenue through the sale of maintenance services and software upgrades for their imaging systems. Strategic partnerships with dental professionals, educational institutions, and other healthcare providers enhance their distribution network and market presence, contributing to their overall earnings. The company's commitment to innovation and product development further positions it to capitalize on emerging trends in dental technology, thereby expanding its revenue potential.

DENTSPLY SIRONA Financial Statement Overview

Summary

DENTSPLY SIRONA is encountering financial challenges, with declining revenues and profitability evidenced by negative margins and net losses. The balance sheet is moderately stable, but negative ROE is concerning. Positive cash flow management provides some support amidst these challenges.

Income Statement

The income statement shows declining revenue and profitability. The TTM (Trailing-Twelve-Months) data indicates a negative net profit margin of approximately -24.4% and a gross profit margin of 51.6%. The company has experienced a negative revenue growth rate of -0.5% compared to the previous year. EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 1.2, indicating a balanced leverage. The equity ratio stands at approximately 33.2%, showing a reasonable proportion of equity financing. Return on Equity (ROE) is negative due to recent losses, which is a concern for potential investors.

Cash Flow

Cash flow analysis shows positive operating cash flow with an operating cash flow to net income ratio of approximately -0.49, indicating operating efficiencies despite net losses. Free cash flow growth rate is slightly negative, but free cash flow to net income ratio is positive, suggesting effective cash management relative to earnings challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.72B	3.79B	3.96B	3.92B	4.25B	3.34B
Gross Profit	1.92B	1.96B	2.09B	2.13B	2.36B	1.66B
EBITDA	-576.00M	-518.00M	232.00M	-677.00M	972.00M	336.00M
Net Income	-908.00M	-910.00M	-132.00M	-950.00M	411.00M	-83.00M
Balance Sheet
Total Assets	6.05B	5.75B	7.37B	7.64B	9.22B	9.34B
Cash, Cash Equivalents and Short-Term Investments	398.00M	272.00M	334.00M	365.00M	339.00M	438.00M
Total Debt	2.42B	2.27B	2.30B	2.09B	2.24B	2.41B
Total Liabilities	4.04B	3.81B	4.08B	3.83B	4.18B	4.37B
Stockholders Equity	2.01B	1.94B	3.29B	3.81B	5.04B	4.97B
Cash Flow
Free Cash Flow	278.00M	281.00M	228.00M	368.00M	515.00M	548.00M
Operating Cash Flow	443.00M	461.00M	377.00M	517.00M	657.00M	635.00M
Investing Cash Flow	-171.00M	-197.00M	-89.00M	-138.00M	-358.00M	-1.11B
Financing Cash Flow	-165.00M	-302.00M	-307.00M	-329.00M	-379.00M	490.00M

DENTSPLY SIRONA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.30
• 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 XRAY, the sentiment is Negative. The current price of 14.3 is above the 20-day moving average (MA) of 13.89, below the 50-day MA of 15.11, and below the 200-day MA of 16.26, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 56.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XRAY.

DENTSPLY SIRONA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	80 Outperform	$40.19B	28.88	25.86%	0.80%	9.84%	37.48%
BDX	75 Outperform	$55.31B	34.70	6.26%	2.11%	7.86%	14.24%
HOLX	75 Outperform	$14.93B	27.85	11.38%	―	1.28%	-17.73%
COO	65 Neutral	$13.40B	33.18	5.01%	―	6.35%	12.94%
XRAY	55 Neutral	$2.85B	―	-37.78%	4.48%	-5.78%	-445.83%
BAX	54 Neutral	$12.68B	136.07	-3.30%	2.75%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%

DENTSPLY SIRONA Corporate Events

Dentsply Sirona Appoints New CEO Daniel T. Scavilla

On July 21, 2025, Dentsply Sirona announced the appointment of Daniel T. Scavilla as President and Chief Executive Officer, effective August 1, 2025, succeeding Simon D. Campion. Mr. Scavilla brings extensive experience from his previous roles at Globus Medical and Johnson & Johnson, where he held various leadership positions. The company also released select preliminary financial results for the second quarter of 2025, expecting net sales of approximately $935 million and adjusted earnings per share between $0.50 and $0.52. This leadership transition and financial update are part of Dentsply Sirona’s ongoing efforts to enhance value for shareholders and position itself as a leader in the dental market.

DENTSPLY SIRONA Issues $550M Junior Subordinated Notes

On June 12, 2025, DENTSPLY SIRONA Inc. issued $550 million in Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055, with an interest rate of 8.375% per year until 2030, and thereafter adjusted based on the Five-year U.S. Treasury Rate plus a spread, ensuring it does not fall below the initial rate. The proceeds from this issuance were partially used to repay and terminate the company’s $435 million Bridge Loan Facility, resulting in no early termination penalties or prepayment premiums, which may positively impact the company’s financial stability and operational flexibility.

Dentsply Sirona Announces $550 Million Notes Offering

On June 5, 2025, Dentsply Sirona Inc. announced it had entered into an Underwriting Agreement with Goldman Sachs & Co. LLC to issue and sell $550 million of its 8.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055. The net proceeds of approximately $544.5 million from this offering will be used for general corporate purposes, including repaying existing indebtedness. The offering is expected to close on June 12, 2025, subject to customary closing conditions, and is part of the company’s strategy to manage its financial obligations effectively.

DENTSPLY SIRONA Amends Credit Facility for Flexibility

On June 3, 2025, DENTSPLY SIRONA Inc. secured consent from its lenders to amend its revolving credit facility and entered into several agreements to adjust financial covenants and debt management strategies. These amendments, including a new financial covenant and leverage ratio adjustments, aim to enhance financial flexibility and manage interest rate risks, potentially impacting the company’s financial operations and stakeholder interests.