Henry Schein, Inc. HSIC
Henry Schein's operational recovery is genuine—FY2025 revenue grew 4.03% to $13.18B with EPS up 7.21% to $3.27, and management just raised the 2026 outlook on Q2 margin momentum—but the stock at $89.23 trades at a 25.79x P/E and 13.41x EV/EBITDA, a 69–72% premium to peer DVA, pricing in substantial improvement already. Total debt has tripled from $1.22B in FY2021 to $3.69B in FY2025 while operating margin remains compressed at 5.75% versus 6.89% five years ago, and EPS is still 27% below the FY2021 peak of $4.45.
With smart money only marginally positive (score 0.0078 as of 2026-06-30) and insider activity dominated by dispositions, the risk/reward at current levels is balanced; hold for evidence that margin expansion and deleveraging can justify the premium.
What could go wrong
- Valuation premium unsustainable. P/E of 25.79x and EV/EBITDA of 13.41x represent roughly 69% and 72% premiums to peer DVA (15.30x and 7.79x); any disappointment in the raised 2026 outlook could trigger a sharp de-rating.
- Leverage burden. Total debt rose to $3.687B in FY2025 from $2.87B in FY2024 and $1.217B in FY2021, while stockholders' equity declined to $3.245B, limiting financial flexibility.
- Margin compression persists. Operating margin has been flat at 5.75% for two consecutive years versus 6.89% in FY2021 and 7.42% in FY2022; if the raised guidance does not translate into operating leverage, the thesis weakens.
- Insider selling pressure. Over the trailing 24 months, insiders recorded 53 dispositions versus 32 acquisitions, with multiple executives selling at approximately $74.61 in March 2026.
What would change my mind
Where this comes from: FMP FY2025 annual + derived_metrics · peer_relative · FMP FY2025 and FY2021 annuals · derived_metrics. Orin's read on HSIC; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All HSIC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Kohlberg Kravis Roberts & L.P | $1.3B | 22.9% of fund |
| Fmr | $630.9M | 0.0% of fund |
| Vanguard Capital Management | $530.1M | 0.0% of fund |
| Jpmorgan Chase & | $366.4M | 0.0% of fund |
| State Street | $359.6M | 0.0% of fund |
| Vanguard Portfolio Management | $345.2M | 0.0% of fund |
72 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 87 Form 4 filings, net $4.0M. Of the 50 on hand, 1 was an open-market purchase and 7 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about HSIC
Orin answers questions about HSIC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 24.6× | 22.9× | 26.4× |
| EV/EBITDA | 12.9× | 12.5× | — |
| P/S | 0.71× | 0.80× | — |
| P/B | 3.1× | 2.8× | — |
Its P/E sits above all 5 of the last 5 years (+1.31σ from its own mean).
5.4%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$92
$64 – $110 · +8% against today's price
- 17 buy or overweight
- 14 hold
- 3 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| HSICHenry Schein, Inc. | $10B | 24.6× | 12.9× | 30.3% | 3.0% | 12% |
| DVADaVita Inc. | $12B | 15.7× | 7.9× | 31.0% | 6.0% | -124% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 56.1% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $82 | $80.12 · +2% | 2026-06-10 |
| Levered DCF | $69 | $80.12 · −14% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.