Henry Schein Inc (HSIC) stock analysis

P/E above its 5-year median

Henry Schein's P/E of 25.8 is above its own 5-year median of 22.2.

P/E above the industry

Henry Schein's P/E of 25.8 is above the Professional and Commercial Equipment and Supplies median of 20.0.

EV/EBITDA above its 5-year median

Henry Schein's EV/EBITDA of 13.7 is above its 5-year median of 13.1.

P/B above the industry

Henry Schein's price-to-book of 3.12 is above the Professional and Commercial Equipment and Supplies median of 2.23.

Trading above fair value

The share price of $88.42 is above our fair value estimate of $72.65.

Margin of safety under 20%

The price is 21.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -5.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 3.6% over the last twelve months, against a 5-year average of -0.3% a year.

Growing slower than the industry

Revenue grew 6.5% over the last twelve months; the Professional and Commercial Equipment and Supplies median is 13.1%.

Guidance raised

Henry Schein raised its 2026 non-GAAP diluted EPS outlook on Aug 4, 2026.

Gross margin slipping

Gross margin was 31.3% over the last twelve months, against 31.3% a year earlier.

Return on equity under 15%

Return on equity was 12.2% over the last twelve months and averaged 13.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 8.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Henry Schein's return on equity of 12.2% is above the Professional and Commercial Equipment and Supplies median of 10.9%.

Earnings shrank over 5 years

Net income shrank 0.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 3.8%.

Net margin above the industry

Henry Schein's net margin of 3.0% is above the Professional and Commercial Equipment and Supplies median of 1.8%.

High debt

Debt is 110% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 20.9% five years ago to 110%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.2% of total debt.

Interest not well covered

Operating income covers interest expense 4.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.32 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.79; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Henry Schein has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.