# Henry Schein (HSIC.US)

Canonical: https://gigainvestors.com/s/HSIC

Analysis as of: 2026-10-16T07:29:09.133Z. Financial observations: FY1998–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $86.99 per share; close as of 2026-10-15.

Estimated value: low $56.80 per share, central $64.64 per share, high $75.06 per share. Buy at or below the central value $64.64 per share. Valuation as of 2026-10-16T07:29:09.133Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.07×

- FY2018: 0.05×

- FY2019: 0.07×

- FY2020: 0.06×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.06×

### moat: pass

- ROIC, median of available years: 29.3%

- ROIC, second-lowest year: 22.7%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 29.0%

- Recent gross margin (lower of latest and 3-year median): 29.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.7%

- ROIC including acquisitions, ten-year median: 12.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 30.4%

- FY2017: 28.1%

- FY2018: 20.3%

- FY2019: 39.6%

- FY2020: 32.4%

- FY2021: 39.3%

- FY2022: 37.3%

- FY2023: 23.8%

- FY2024: 24.5%

- FY2025: 22.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.22×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.9B

- Net income, five-year total: $2.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.4 pp

- Working capital / revenue, final three-year average: 19.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.21×

- FY2022: 1.20×

- FY2023: 1.08×

- FY2024: 1.20×

- FY2025: 1.41×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 28.1% vs 23.8%

- Per-share earnings: 2.57 to 3.16 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -5.5%

- Ordinary dilution, 5-year annual growth: -3.2%

- Market cap gain: -$15B

- Cumulative retained earnings: $311M

- Diluted shares, 10-year annual growth: -5.5%

- Diluted shares, 5-year annual growth: -3.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.6%

- Per-share value change: $0.59

- Per-share value, starting three-year median: $2.57

- Per-share value, ending three-year median: $3.16

- Buybacks concentrated in cheaper years (correlation): 0.59

- Average buyback yield: 4.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.3B

- Cumulative net income, 10 years: $4.7B

- ROIC, first three-year median: 28.1%

- ROIC, last three-year median: 23.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.10

- FY2017: $2.57

- FY2018: $3.49

- FY2019: $3.40

- FY2020: $2.80

- FY2021: $4.40

- FY2022: $3.91

- FY2023: $3.16

- FY2024: $3.05

- FY2025: $3.27

### accounting: pass

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 5.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.79×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.61×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.6%

- FY2017: -1.8%

- FY2018: -1.8%

- FY2019: -2.0%

- FY2020: -2.5%

- FY2021: -1.0%

- FY2022: -0.7%

- FY2023: -0.8%

- FY2024: -4.5%

- FY2025: -2.8%

## Holders

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 4.6% a year for ten years · "HSIC Raises 2026 Outlook as Sales and Margin Momentum Accelerates" (finance.yahoo.com, Aug 2026) · sales +4%

Story as of 2026-10-16T09:58:54.481Z; price observation 2026-10-15.

Price needs cash profits to grow 4.6% a year for ten years

- 2025-08-13: HSIC Q2 Deep Dive: Margin Pressures Persist Despite Solid Revenue, New Initiatives Announced ([finance.yahoo.com](https://finance.yahoo.com/news/hsic-q2-deep-dive-margin-040703875.html))

- 2025-11-16: Henry Schein (HSIC): Fresh Sales Guidance and Strong Earnings Bring Valuation Back Into Focus ([finance.yahoo.com](https://finance.yahoo.com/news/henry-schein-hsic-fresh-sales-001903534.html))

- 2026-05-30: Henry Schein Sees Steady Dental Demand, $125M Profit Lift by 2026 ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/henry-schein-sees-steady-dental-080219957.html))

- 2026-08-04: Henry Schein Reports Strong Second Quarter 2026 Financial Results and Raises FY2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/henry-schein-reports-strong-second-100000915.html))

### Sales · FY2024–2025

sales +4%; source https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm; observed 2026-02-24.

- FY2016: $12B 

- FY2017: $12B 

- FY2018: $13B 

- FY2019: $10.0B 

- FY2020: $10B 

- FY2021: $12B 

- FY2022: $13B 

- FY2023: $12B 

- FY2024: $13B 

- FY2025: $13B 

### Gross margin · FY2025

gross margin 29.1%; source https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm; observed 2026-02-24.

- FY2016: 27.9% 

- FY2017: 27.3% 

- FY2018: 22.0% 

- FY2019: 31.0% 

- FY2020: 27.8% 

- FY2021: 29.6% 

- FY2022: 28.9% 

- FY2023: 29.6% 

- FY2024: 29.7% 

- FY2025: 29.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical distribution; annual sales are USD 13.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm (filed 2026-02-24); FY2025: revenue 13184000000; grossProfit 3842000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HSIC.US: Henry Schein, Inc. provides health care products and services to office-based dental and medical practitioners worldwide. It operates through Global Distribution and Value-Added Services; Global Specialty Products; and Global Technology segments. The Global Distribution and Value-Added Services segment distributes infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, PPE products, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, dental chairs, delivery units and lights, digital dental laboratories, X-ray supplies and equipment, and high-tech and digital restoration equipment, as well as provides equipment repair services, financial services on a non-recourse basis, continuing education services for practitioners, consulting, and other services. It also markets and sells a portfolio of consumable merchandise under its own corporate brand. The Global Specialty Products segment engage in manufacturing, marketing, and sales of dental implant and biomaterial products; and endodontic, orthodontic and orthopedic products, and other health care-related products and services. The Global Technology segment is involved in the development and distribution of practice management software, e-services, and other products which are distributed to health care providers. The company serves dental practices, laboratories, physician practices, and ambulatory surgery centers, as well as government, institutional health care clinics, home health providers, and other alternate care clinics. It has a strategic partnership with GoTu Technology to help dental practices address ongoing staffing challenges. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.

### Why customers stay

Margins ranged from 29.1% to 29.7% during 2023–25; it earns 29.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 29.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 29.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 29.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.30436931964432035],[2017,0.2808039956474342],[2018,0.20261578901559435],[2019,0.39607075780280104],[2020,0.3240337417393767],[2021,0.39309740668353443],[2022,0.3731724735149239],[2023,0.2382550130108679],[2024,0.244720834275188],[2025,0.22737259590431225]]; median 0.29258665764587727. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 29% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm (filed 2026-02-24); Gross margin observations: [[2021,0.2961253931134586],[2022,0.28852692338103897],[2023,0.29589107707269635]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 850 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 70179000; owner earnings 606379000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 81501000; owner earnings 517870000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 90637000; owner earnings 588874000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 76219000; owner earnings 616688000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 49000000; owner earnings 533468967.7299092. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 79015000; owner earnings 754427000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 96000000; owner earnings 648261484.0989399. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 0; upkeep 187000000; owner earnings 451000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 187000000; owner earnings 469371859.29648244. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 139000000; owner earnings 561379474.9403341. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,32350000],[2017,29134000],[2018,17515000],[2019,148146000],[2020,14299000],[2021,7471000],[2022,30000000],[2023,2100000000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm (filed 2026-02-24); FY2025: cash repurchases 850000000 USD.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HSIC.US SharesStats.PercentInsiders = 0.8330000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.6% yearly over ten years; actual growth was 5.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.05314131396695354. Price 86.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.640799463916325 → FY2025 4.612136634230572. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $149.20 per share

- 2016-11: $148.96 per share

- 2016-12: $151.71 per share

- 2017-01: $159.86 per share

- 2017-02: $171.56 per share

- 2017-03: $169.97 per share

- 2017-04: $173.80 per share

- 2017-05: $183.97 per share

- 2017-06: $183.02 per share

- 2017-07: $182.21 per share

- 2017-08: $173.68 per share

- 2017-09: $81.99 per share

- 2017-10: $78.60 per share

- 2017-11: $71.45 per share

- 2017-12: $69.88 per share

- 2018-01: $75.68 per share

- 2018-02: $66.19 per share

- 2018-03: $67.21 per share

- 2018-04: $76.00 per share

- 2018-05: $69.20 per share

- 2018-06: $72.64 per share

- 2018-07: $79.41 per share

- 2018-08: $77.68 per share

- 2018-09: $85.03 per share

- 2018-10: $83.00 per share

- 2018-11: $89.20 per share

- 2018-12: $78.52 per share

- 2019-01: $77.70 per share

- 2019-02: $59.30 per share

- 2019-03: $60.11 per share

- 2019-04: $64.06 per share

- 2019-05: $64.46 per share

- 2019-06: $69.90 per share

- 2019-07: $66.54 per share

- 2019-08: $61.62 per share

- 2019-09: $63.50 per share

- 2019-10: $62.59 per share

- 2019-11: $68.90 per share

- 2019-12: $66.72 per share

- 2020-01: $68.94 per share

- 2020-02: $60.94 per share

- 2020-03: $50.52 per share

- 2020-04: $54.56 per share

- 2020-05: $60.72 per share

- 2020-06: $58.39 per share

- 2020-07: $68.73 per share

- 2020-08: $66.44 per share

- 2020-09: $58.78 per share

- 2020-10: $63.58 per share

- 2020-11: $64.31 per share

- 2020-12: $66.86 per share

- 2021-01: $65.85 per share

- 2021-02: $61.85 per share

- 2021-03: $69.24 per share

- 2021-04: $72.50 per share

- 2021-05: $76.04 per share

- 2021-06: $74.19 per share

- 2021-07: $80.15 per share

- 2021-08: $75.59 per share

- 2021-09: $76.16 per share

- 2021-10: $76.35 per share

- 2021-11: $71.06 per share

- 2021-12: $77.53 per share

- 2022-01: $75.30 per share

- 2022-02: $86.38 per share

- 2022-03: $87.19 per share

- 2022-04: $81.10 per share

- 2022-05: $85.64 per share

- 2022-06: $76.74 per share

- 2022-07: $78.83 per share

- 2022-08: $73.41 per share

- 2022-09: $65.77 per share

- 2022-10: $68.46 per share

- 2022-11: $80.92 per share

- 2022-12: $79.87 per share

- 2023-01: $86.15 per share

- 2023-02: $78.31 per share

- 2023-03: $81.54 per share

- 2023-04: $80.81 per share

- 2023-05: $73.90 per share

- 2023-06: $81.10 per share

- 2023-07: $78.79 per share

- 2023-08: $76.54 per share

- 2023-09: $74.25 per share

- 2023-10: $64.98 per share

- 2023-11: $66.73 per share

- 2023-12: $75.71 per share

- 2024-01: $74.84 per share

- 2024-02: $76.47 per share

- 2024-03: $75.52 per share

- 2024-04: $69.28 per share

- 2024-05: $69.34 per share

- 2024-06: $64.10 per share

- 2024-07: $71.94 per share

- 2024-08: $70.55 per share

- 2024-09: $72.90 per share

- 2024-10: $70.23 per share

- 2024-11: $77.05 per share

- 2024-12: $69.20 per share

- 2025-01: $80.00 per share

- 2025-02: $72.17 per share

- 2025-03: $68.49 per share

- 2025-04: $64.97 per share

- 2025-05: $69.99 per share

- 2025-06: $73.05 per share

- 2025-07: $67.65 per share

- 2025-08: $69.58 per share

- 2025-09: $66.37 per share

- 2025-10: $63.20 per share

- 2025-11: $74.57 per share

- 2025-12: $75.58 per share

- 2026-01: $75.48 per share

- 2026-02: $82.39 per share

- 2026-03: $73.70 per share

- 2026-04: $74.59 per share

- 2026-05: $76.58 per share

- 2026-06: $83.52 per share

- 2026-07: $85.75 per share

- 2026-08: $89.80 per share

- 2026-09: $83.97 per share

- 2026-10: $86.99 per share

## Annual estimated value (USD per share)

- FY2016: low $53.78 per share, central $78.45 per share, high $92.21 per share

- FY2017: low $58.63 per share, central $83.67 per share, high $98.26 per share

- FY2018: low $56.37 per share, central $75.02 per share, high $87.83 per share

- FY2019: low $38.32 per share, central $43.60 per share, high $50.64 per share

- FY2020: low $43.63 per share, central $49.52 per share, high $57.38 per share

- FY2021: low $52.58 per share, central $59.93 per share, high $69.73 per share

- FY2022: low $58.81 per share, central $71.60 per share, high $83.54 per share

- FY2023: low $55.92 per share, central $66.05 per share, high $76.87 per share

- FY2024: low $55.57 per share, central $63.23 per share, high $73.43 per share

- FY2025: low $50.41 per share, central $57.36 per share, high $66.62 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm); period 2025-12-27, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.