Henry Schein
HSIC
$88.50
+0.05%
Henry Schein Inc is a leading solutions provider for healthcare professionals, offering a comprehensive range of medical and dental products, equipment, and services, including value-added solutions like financial services and practice management consulting. As one of the largest distributors in the healthcare industry, it operates through three segments: Global Distribution and Value-Added Services, Global Specialty Products, and Global Technology, with the distribution segment being the primary revenue driver. The company is currently navigating a period of steady growth, with recent quarterly results showing a 6.3% year-over-year revenue increase, while investors are closely monitoring its ability to sustain margin improvements and capitalize on technology-driven opportunities in the healthcare distribution space.…
HSIC
Henry Schein
$88.50
Investment Opinion: Should I buy HSIC Today?
Based on the analysis, HSIC is rated a 'Buy' with a thesis that its consistent revenue growth, improving gross margins, and reasonable forward valuation offer a favorable risk/reward. The analyst consensus of 'Buy' with an average target of $98.19 supports this view, implying a 10.95% upside. The company's strong market position in healthcare distribution and technology services provides a stable foundation for growth.
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HSIC 12-Month Price Forecast
The AI assessment leans bullish due to HSIC's consistent growth, improving margins, and attractive forward valuation. The stock's low beta and strong relative strength (1-year +29.75% vs S&P +20.48%) indicate solid momentum. However, the high PEG ratio and margin compression warrant caution. If the company delivers on earnings expectations and maintains margin stability, the stock could re-rate higher. Conversely, any disappointment in growth or margins could trigger a downgrade. The stance would be upgraded to 'high confidence' if Q2 earnings show accelerating growth and margin expansion, or downgraded to 'neutral' if revenue growth falls below 4%.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Henry Schein's 12-month outlook, with a consensus price target around $98.19 and implied upside of +10.9% versus the current price.
Average Target
$98.19
0 analysts
Implied Upside
+10.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$64 - $112
Analyst target range
Henry Schein is covered by 16 analysts, with a consensus recommendation of 'Buy' (mean score 2.29, where 1 is Strong Buy and 5 is Sell). The average target price is $98.19, implying an upside of 10.95% from the current price of $88.50. The distribution of ratings includes 8 Buy, 5 Hold, and 3 Sell, indicating a generally positive sentiment. The target price range spans from $64.00 (low) to $112.00 (high), with the high target suggesting a 26.55% upside, likely assuming continued revenue growth and margin expansion. The low target of $64.00 implies a 27.68% downside, possibly reflecting risks such as competitive pressures or economic downturn. Recent ratings actions show a mix, with BTIG upgrading from Neutral to Buy in June 2026, while Morgan Stanley maintains an Underweight stance, indicating some divergence in analyst views. The wide spread between high and low targets (48 points) suggests moderate uncertainty about the company's future performance, but the overall bullish consensus and recent upgrade signal positive momentum.
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Bulls vs Bears: HSIC Investment Factors
Henry Schein presents a balanced risk/reward profile. Bullish factors include consistent revenue growth, improving gross margins, and a favorable analyst consensus, while bearish concerns center on high PEG, margin compression, and cash flow volatility. Currently, the bull case has stronger evidence given the company's stable growth and reasonable forward valuation, but the key tension lies in whether the company can achieve the expected EPS growth (57% implied) to justify the current valuation. If growth disappoints, the stock could face a significant de-rating, making earnings delivery the most critical factor to watch.
Bullish
- Consistent Revenue Growth: Q1 2026 revenue grew 6.31% YoY to $3.368B, with all recent quarters showing YoY increases (Q4 2025: +7.7%, Q3 2025: +5.2%). This steady growth is driven by the core Healthcare Distribution segment, which contributed $2.953B in Q1 2026.
- Improving Gross Margin: Gross margin expanded to 31.77% in Q1 2026 from 29.62% in Q1 2025, a 215 bps improvement. This indicates better cost management and product mix, which could drive further operating leverage.
- Strong Analyst Consensus: 16 analysts rate HSIC a 'Buy' with a mean score of 2.29, and the average target price of $98.19 implies 10.95% upside. The high target of $112 suggests 26.55% potential, reflecting confidence in continued growth.
- Undervalued on Forward PE: The forward PE of 14.75x is well below the trailing PE of 23.14x, implying the market expects significant EPS growth (from $3.82 to $6.00). This suggests the stock is reasonably priced relative to future earnings.
Bearish
- High PEG Ratio Signals Overvaluation: The PEG ratio of 3.23x is elevated, indicating that the market's growth expectations may be too optimistic. If earnings growth fails to meet the implied 57% increase, the stock could face de-rating.
- Operating Margin Compression: Operating margin declined to 5.40% in Q1 2026 from 6.38% in Q1 2025, a 98 bps drop. This suggests rising costs or competitive pressures that could erode profitability if not reversed.
- Negative Free Cash Flow in Q1: Q1 2026 free cash flow was -$136M due to seasonal working capital needs. While TTM FCF is $431M, the negative quarterly figure highlights cash flow volatility that could impact dividend or investment capacity.
- Moderate Debt Levels: The debt-to-equity ratio of 1.136 is moderate but elevated for a distribution company. High debt could limit financial flexibility, especially if interest rates remain high or cash flow weakens.
HSIC Technical Analysis
Henry Schein's stock has demonstrated a robust uptrend over the past year, with a 1-year price change of +29.75%, significantly outperforming the S&P 500's +20.48% gain. The current price of $88.50 sits at 96% of its 52-week range (low: $61.95, high: $92.18), indicating the stock is trading near its highs, which reflects strong momentum but also potential overextension. The stock's beta of 0.808 suggests it is less volatile than the broader market, providing a relatively stable investment profile.
Beta
0.81
0.81x market volatility
Max Drawdown
-17.2%
Largest decline past year
52-Week Range
$62-$92
Price range past year
Annual Return
+29.7%
Cumulative gain past year
| Period | HSIC Return | S&P 500 |
|---|---|---|
| 1m | +4.4% | +3.6% |
| 3m | +19.3% | +2.7% |
| 6m | +11.2% | +11.4% |
| 1y | +29.7% | +18.7% |
| ytd | +15.2% | +12.3% |
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HSIC Fundamental Analysis
Henry Schein's revenue trajectory remains positive, with the most recent quarter (Q1 2026) reporting revenue of $3.368 billion, a 6.31% year-over-year increase from $3.168 billion in Q1 2025. This growth is consistent with the prior quarters, as Q4 2025 revenue was $3.437 billion (up from $3.191 billion in Q4 2024), and Q3 2025 revenue was $3.339 billion (up from $3.174 billion in Q3 2024). The growth is driven by the Healthcare Distribution segment, which contributed $2.953 billion, while the Technology segment added $221 million, indicating a diversified revenue base. The company's profitability is solid, with a gross margin of 31.77% in Q1 2026, up from 29.62% in Q1 2025, and a net income of $107 million, resulting in a net margin of 3.18%. Operating margin improved to 5.40% from 6.38% in the prior year quarter, reflecting slight compression but still positive. The balance sheet shows a debt-to-equity ratio of 1.136, which is moderate for a distribution company, and a current ratio of 1.383, indicating adequate liquidity. Free cash flow for the trailing twelve months is $431 million, though Q1 2026 saw negative free cash flow of -$136 million due to seasonal working capital changes, but the company has historically generated strong cash flow, as evidenced by $338 million in Q4 2025.
Quarterly Revenue
$3.4B
2026-03
Revenue YoY Growth
+6.3%
YoY Comparison
Gross Margin
31.8%
Latest Quarter
Free Cash Flow
$431000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is HSIC Overvalued?
Given that Henry Schein is profitable, the PE ratio is the primary valuation metric. The trailing PE is 23.14x, while the forward PE is 14.75x, indicating the market expects significant earnings growth. The gap between trailing and forward PE suggests an anticipated EPS increase from $3.82 (trailing) to $6.00 (forward), implying a 57% earnings growth expectation. Compared to the industry average PE of 22x (from valuation data), Henry Schein trades at a slight premium of 5.2%, which is justified by its consistent growth and strong market position. Historically, the stock's PE has ranged from 15.17x (Q3 2022) to 135.20x (Q4 2023), with the current trailing PE of 23.14x sitting near the lower end of its historical range, suggesting the stock is not overvalued relative to its own past. The PEG ratio of 3.23x indicates that the market is pricing in high growth expectations, which may be optimistic given the company's moderate growth rate.
PE
23.1x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 15x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a moderate debt-to-equity ratio of 1.136, which could strain cash flow if interest rates rise. The negative free cash flow of -$136M in Q1 2026 highlights working capital volatility, though TTM FCF of $431M provides some cushion. Operating margin compression from 6.38% to 5.40% YoY indicates potential cost pressures that could impact profitability if not managed. Additionally, the high PEG ratio of 3.23 suggests the market expects aggressive growth, leaving little room for error in earnings delivery.
