📊 HSIC Key Takeaways
Is Henry Schein Inc. (HSIC) a Good Investment?
Henry Schein demonstrates resilient top-line growth in a defensive healthcare distribution sector, with net income growth outpacing revenue expansion. However, severely negative operating cash flow (-$97M) despite positive earnings signals acute working capital stress and potential quality-of-earnings concerns, while razor-thin net margins (3.2%) and abysmal returns (ROE 3.3%, ROA 0.9%) indicate structural profitability challenges.
Henry Schein shows steady top-line growth with improving earnings and strong cash conversion, supporting reinvestment and balance sheet flexibility. Margins are modest but consistent for a distributor, and leverage appears manageable with adequate interest coverage.
Why Buy Henry Schein Inc. Stock? HSIC Key Strengths
- Revenue and net income growth (+4.0% and +5.3% YoY) in defensive healthcare supplies sector resistant to economic cycles
- Manageable leverage (Debt/Equity 0.71x) with adequate interest coverage (4.7x) to service obligations
- Operational scale ($3.4B revenue, $11.3B assets) provides competitive moat in distribution
- Robust cash generation with OCF exceeding net income and 4.3% FCF margin
- Stable profitability profile for distribution (31.1% gross, 5.0% operating) with EPS up 7.2% YoY
- Moderate leverage (0.71x D/E) and sufficient liquidity (1.38x current ratio)
HSIC Stock Risks: Henry Schein Inc. Investment Risks
- Negative operating cash flow (-$97M) and free cash flow (-$122M) indicate severe working capital deterioration despite positive earnings; unsustainable without external financing
- Critically thin net margin (3.2%) and anemic returns (ROE 3.3%, ROA 0.9%) limit pricing power and operational flexibility in competitive distribution market
- Quick ratio of 0.75x with only $138M cash against $2.3B debt and operational burn suggests emerging liquidity stress
- Thin operating margin leaves limited buffer against pricing or cost pressure
- Working-capital intensity and sub-1.0 quick ratio heighten liquidity sensitivity
- Interest burden risk with $2.31B long-term debt and 4.4x coverage
Key Metrics to Watch
- Operating cash flow trajectory and working capital components (inventory, receivables) - must return to positive to confirm earnings quality
- Gross margin stability - deterioration would be existential given thin operating margins
- Debt covenant compliance and access to credit facilities - critical for financing ongoing negative FCF
- Operating margin
- Interest coverage
Henry Schein Inc. (HSIC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Henry Schein Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HSIC Profit Margin, ROE & Profitability Analysis
HSIC vs Healthcare Sector: How Henry Schein Inc. Compares
How Henry Schein Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Henry Schein Inc. Stock Overvalued? HSIC Valuation Analysis 2026
Based on fundamental analysis, Henry Schein Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Henry Schein Inc. Balance Sheet: HSIC Debt, Cash & Liquidity
HSIC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Henry Schein Inc.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $3.16 reflects profitable operations.
HSIC Revenue Growth, EPS Growth & YoY Performance
HSIC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $107.0M | $0.88 |
| Q3 2025 | $3.2B | $99.0M | $0.78 |
| Q2 2025 | $3.1B | $86.0M | $0.70 |
| Q1 2025 | $3.2B | $93.0M | $0.72 |
| Q3 2024 | $3.2B | $99.0M | $0.78 |
| Q2 2024 | $3.1B | $104.0M | $0.80 |
| Q1 2024 | $3.1B | $93.0M | $0.72 |
| Q3 2023 | $3.1B | $137.0M | $1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Henry Schein Inc. Dividends, Buybacks & Capital Allocation
HSIC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Henry Schein Inc. (CIK: 0001000228)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HSIC
What is the AI rating for HSIC?
Henry Schein Inc. (HSIC) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HSIC's key strengths?
Claude: Revenue and net income growth (+4.0% and +5.3% YoY) in defensive healthcare supplies sector resistant to economic cycles. Manageable leverage (Debt/Equity 0.71x) with adequate interest coverage (4.7x) to service obligations. ChatGPT: Robust cash generation with OCF exceeding net income and 4.3% FCF margin. Stable profitability profile for distribution (31.1% gross, 5.0% operating) with EPS up 7.2% YoY.
What are the risks of investing in HSIC?
Claude: Negative operating cash flow (-$97M) and free cash flow (-$122M) indicate severe working capital deterioration despite positive earnings; unsustainable without external financing. Critically thin net margin (3.2%) and anemic returns (ROE 3.3%, ROA 0.9%) limit pricing power and operational flexibility in competitive distribution market. ChatGPT: Thin operating margin leaves limited buffer against pricing or cost pressure. Working-capital intensity and sub-1.0 quick ratio heighten liquidity sensitivity.
What is HSIC's revenue and growth?
Henry Schein Inc. reported revenue of $3.4B.
Does HSIC pay dividends?
Henry Schein Inc. does not currently pay dividends.
Where can I find HSIC SEC filings?
Official SEC filings for Henry Schein Inc. (CIK: 0001000228) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HSIC's EPS?
Henry Schein Inc. has a diluted EPS of $0.92.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HSIC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Henry Schein Inc. has a BUY rating with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HSIC stock overvalued or undervalued?
Valuation metrics for HSIC: ROE of 3.3% (sector avg: 15%), net margin of 3.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HSIC stock in 2026?
Our dual AI analysis gives Henry Schein Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HSIC's free cash flow?
Henry Schein Inc.'s operating cash flow is $-97.0M, with capital expenditures of $25.0M. FCF margin is -3.6%.
How does HSIC compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.2% (avg: 12%), ROE 3.3% (avg: 15%), current ratio 1.36 (avg: 2).