* Note: Prices are in Million (M) USD.
Description:
Henry Schein, Inc. is an American distributor of health care products and services with a presence in 32 countries.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $145 M
Debt : $3,358 M
EBITDA : $961 M
Net Debt (Debt - Cash): $3,213 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Medical distribution
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 13.89
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $448 M
Average Revenue: $9,580 M
Revenue Converted To Free Cash Flow (%): 4.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $12,673 M
Revenue 4 Years Ago (2020-12-31): $10,119 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $128 M
Share Count 5 Years Ago (2020-12-31): $143 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.19
Trailing 12-Month Earnings Per Share (EPS): $4.83
Average Earnings Per Share (EPS): $5.01
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 19 valid ROE years (max 20).Average ROE: 15.1%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $70
52-Week Low: $61
Threshold Price (15% Above 52-Week Low): $70
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $8,227 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Henry Schein Inc (HSIC) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 18 Years Avg PE
30.05 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 18 Years Avg P/E (30.05)
× EPS ($5.01) = $150.55.
Last 18 Years Avg PE 30.05, Fair Value PE 15, Industry Based PE 15, Growth Based PE 5, RCFC Based PE 13.74, ROE Based PE 22.04, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 16.84. Value-Trades has assined P/E value 16.84. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.01.
The fair value of Henry Schein Inc (HSIC) stock should be (16.84 x $5.01) = $84.39.
