Quality Investor

Henry Schein, Inc.

Rank #165Capital Return

HSIC · Nasdaq · Healthcare

Henry Schein, Inc. (HSIC) — Rank #165 by gross profitability (GP/assets 0.36) · ROE 12.6% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001000228 · all metrics point-in-time as of the filing date.

About

Henry Schein, Inc. provides health care products and services to office-based dental and medical practitioners worldwide.

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It operates through Global Distribution and Value-Added Services; Global Specialty Products; and Global Technology segments. The Global Distribution and Value-Added Services segment distributes infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, PPE products, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, dental chairs, delivery units and lights, digital dental laboratories, X-ray supplies and equipment, and high-tech and digital restoration equipment, as well as provides equipment repair services, financial services on a non-recourse basis, continuing education services for practitioners, consulting, and other services. It also markets and sells a portfolio of consumable merchandise under its own corporate brand. The Global Specialty Products segment engage in manufacturing, marketing, and sales of dental implant and biomaterial products; and endodontic, orthodontic and orthopedic products, and other health care-related products and services. The Global Technology segment is involved in the development and distribution of practice management software, e-services, and other products which are distributed to health care providers. The company serves dental practices, laboratories, physician practices, and ambulatory surgery centers, as well as government, institutional health care clinics, home health providers, and other alternate care clinics. It has a strategic partnership with GoTu Technology to help dental practices address ongoing staffing challenges. Henry Schein, Inc.

was founded in 1932 and is headquartered in Melville, New York.

Industry
Medical Distribution
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 26

Price History

HSIC+13.2% · +2.5% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$10.04B

P/E (annual)

27.0

P/S (annual)

0.8

P/B

3.2

P/OCF (annual)

14.1

Shareholder Yield

23.1%

Employees

25,000

Industry

Medical Distribution

Exchange

Nasdaq

Signal Flags

2 green1 yellow1 red
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.36
Return on equity
12.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.74
Current ratio
1.32×
Net cash
-$867.00M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

2/2 pass
Revenue growth
5.8%
Piotroski F-Score
N/A
Share dilution
-23.1%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

6.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -23.1% — per-share value needs a total required return of -16.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 3.7%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.6%

r = 10% (base)

6.8%

r = 12%

10.5%

Net debt / market cap: 8.1%

Base FCF: $573M3Y mean FCF: $594.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.0xFair
14.8xmed 19.4x23.4x

P / S

Price / revenue per share

0.9xFair
0.7xmed 0.9x1.0x

P / B

Price / book value per share

3.3xFair
2.8xmed 3.4x3.5x

P / GP

Price / gross profit per share

2.9xFair
2.6xmed 3.1x3.3x

P / FCF

Price / free cash flow per share

22.3xExpensive
15.6xmed 17.8x22.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.36

Primary signal (Novy-Marx).

6th of 9 SIC 50 peers

Return on equity

12.6%

Gross margin

31.1%

5th of 9 SIC 50 peers

Revenue growth (YoY)

5.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2018202020212022
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

1.4%

Revenue CAGR (5Y)

5.4%

Earnings CAGR (3Y)

-9.6%

FCF CAGR (3Y)

4.2%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.74

9th of 9 SIC 50 peers (best = lowest)

Current ratio

1.32×

9th of 9 SIC 50 peers

Quick ratio

0.55×

Net cash

-$867.00M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$573.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.44

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20162022
Capital Return
Decline