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Analyzing Henry Schein’s Valuation Trend

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Financials

Henry Schein (HSIC) generated revenues of $3.33 billion in the second quarter, compared to revenues of $3.06 billion in the second quarter of 2017. For fiscal 2018 and 2019, the company is expected to generate revenues of $13.41 billion and $14.05 billion, respectively, compared with revenues of $12.46 billion in fiscal 2017.

Henry Schein’s Animal Health Unit generated sales of $985.9 million in the second quarter, compared to $891.33 million in the second quarter of 2017.

Analysts’ recommendations

Twenty-one analysts are covering Henry Schein (HSIC) in September. Nine analysts gave Henry Schein stock a “buy” or higher rating, 11 analysts gave Henry Schein a “hold” rating, and one analyst gave Henry Schein a “sell” rating. The mean rating for Henry Schein stock is 2.38 with a target price of $82.56.

Among its peers, analysts gave mean ratings of 1.89 and 2.56, respectively, to Idexx Laboratories (IDXX) and McKesson (MCK). Idexx Laboratories’ target price is $264.80, and McKesson’s target price is $151.00.

Valuation metrics

Henry Schein’s enterprise value is $15.14 billion, and its enterprise-value-to-revenue ratio is 1.16. The stock is trading at a forward price-to-earnings multiple of 19.3x. Its price-to-sales ratio is 1.01, and its price-to-book ratio is 4.54.

After correcting from $78.93 on January 26 to $63.44 on March 1, Henry Schein stock has been in a strong uptrend. The stock has risen to its present level of $85.88 in September.

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