$75.08
arrow_drop_up1.80%Is HSIC a Buy or Sell based on AI Analysis?
Fundamental Analysis
Henry Schein Inc is a healthcare company with a market capitalization of $9.92B, indicating its size and stability in the market. The company has a price-to-book ratio of 2.72, reflecting the market value of its assets and potential for growth. With a return on equity of 8.88%, Henry Schein Inc shows efficiency in generating returns for its shareholders. The company's net profit margin of 3.37% signifies its ability to control costs and manage profitability effectively. Additionally, the enterprise value to EBITDA ratio of 13.87 indicates the company's operational efficiency and its ability to generate earnings before interest, taxes, depreciation, and amortization. In terms of liquidity, Henry Schein Inc has a current ratio of 1.67, indicating that it has enough current assets to cover its short-term liabilities. The company's free cash flow margin of 2.54% highlights its ability to generate cash after accounting for expenses and investments. The debt-to-equity ratio of 0.53 suggests that Henry Schein has a conservative level of debt compared to its equity, reducing its financial risk. Furthermore, the earnings growth average over the past three years is -20.41%, indicating a temporary decline in profitability. Overall, with strong fundamentals and a stable market position, Henry Schein Inc presents itself as a promising investment opportunity in the healthcare sector.
Positive Development
Henry Schein Inc. has been recognized for its efforts in improving health literacy and strengthening patient utilization of integrated, preventive care through its Henry Schein Cares Foundation, Inc. This highlights the company's commitment to promoting public health and wellness. Henry Schein Inc. has been recognized for its comprehensive lineup of digital equipment, technology solutions, and business services designed to help dental practices operate more efficiently and effectively. This indicates the company's dedication to innovation and its ability to provide valuable solutions to its customers. The company has announced its 2024 guidance with non-GAAP EPS growth of 11% to 15%. This suggests that the company is optimistic about its future performance and growth.
Negative Development
Henry Schein Inc. has faced significant financial losses due to a cyber attack that forced it to take some systems offline. This has resulted in a reduction in Q4 sales, which may impact its future performance. The company has also been reported to have underperformed its competitors despite losses on the day. This could indicate a potential decline in the company's stock price. The company has also reported cyber incident costs that are expected to continue in 2024. This may result in increased expenses for the company and potentially affect its profitability.
Technical Analysis
Henry Schein Inc has a neutral technical rating, with two buy indicators (ATR and ROC) and six hold indicators (RSI, MACD, CCI, ADX, WILLR, and STOCHRSI) for the month of March 2024. The stock has a beta of 0.87, indicating that it is less volatile than the overall market. Additionally, the stock has a sma (simple moving average) of 1.38, suggesting a slight upward trend in the stock price. The company's technical analysis also highlights a seven-day price change percent of -3.41% and a one-month price change percent of 2.53%, indicating some recent price fluctuations. Overall, the technical indicators and analysis suggest a mixed outlook for Henry Schein Inc in the near term. On the other hand, the stock sector of Henry Schein Inc is in the healthcare industry, which has seen a strong stock sector change of 28.55% over the past year. The company's stock market change over the same period is 37.85%, indicating a positive performance relative to the overall market. The technical analysis also provides insight into the stock's performance, with a technical score of 60 and technical buy indicators suggesting potential buying opportunities. While the stock has a neutral analyst recommendation, the technical analysis points to a potential upward trend in the stock price. Investors may want to consider these technical indicators and the stock's sector performance when making investment decisions related to Henry Schein Inc.
Conclusion and recommendation
Based on the data provided, Henry Schein Inc (HSIC) is a healthcare company with a market cap of $9.92B and a strong financial standing. The company's stock price is currently at $76.79, with a PE ratio of 24.3 and a forward annual dividend yield of undisclosed. While the stock's performance has seen some fluctuations in the short term, the long-term trend shows a five-year price change of 28.5%, indicating potential for growth. Additionally, the company has a solid return on equity at 8.88% and a net margin of 3.37%, suggesting efficient operations and profitability. With a neutral analyst recommendation and a forecasted price of $82.83, investors may consider HSIC as a potential addition to their portfolio. In conclusion, Henry Schein Inc appears to be a stable and promising investment opportunity in the healthcare sector. The company's strong financials, historical price performance, and market position make it an attractive option for investors looking for long-term growth potential. While short-term fluctuations may occur, the overall outlook for HSIC remains positive. Investors may want to further research and consider adding Henry Schein Inc to their investment portfolio for potential returns in the future.