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Should You Consider Henry Schein, Inc. (NASDAQ:HSIC)?

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Henry Schein, Inc. (NASDAQ:HSIC) due to its excellent fundamentals in more than one area. HSIC is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Henry Schein here.

Solid track record with excellent balance sheet

In the previous year, HSIC has ramped up its bottom line by 56%, with its latest earnings level surpassing its average level over the last five years. Not only did HSIC outperformed its past performance, its growth also exceeded the Healthcare industry expansion, which generated a 5.6% earnings growth. This is an optimistic signal for the future. HSIC is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that HSIC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. HSIC's has produced operating cash levels of 0.51x total debt over the past year, which implies that HSIC's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NasdaqGS:HSIC Income Statement, August 27th 2019
NasdaqGS:HSIC Income Statement, August 27th 2019

Next Steps:

For Henry Schein, I've compiled three essential factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for HSIC’s future growth? Take a look at our free research report of analyst consensus for HSIC’s outlook.

  2. Valuation: What is HSIC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HSIC is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.