Henry Schein (HSIC) just lifted its 2025 sales growth guidance, signaling management’s confidence after reporting stronger sales and net income for the quarter compared to last year. This outlook could prompt a closer look from investors.
See our latest analysis for Henry Schein.
Following the upbeat sales and earnings update, Henry Schein’s share price has climbed 12.9% over the past month, signaling renewed momentum after a year of gradual gains. Despite this recent boost, the long-term total shareholder return remains just modestly positive, which hints there is still room for the valuation story to play out.
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Yet with Henry Schein’s shares now enjoying a solid rally and analyst targets still offering only a moderate premium, the key question remains: is there value left to unlock, or has the market already priced in future growth?
With Henry Schein’s most widely followed narrative setting fair value at $75.15, the current price of $71.43 suggests modest upside could remain. The stage is set by ongoing operational changes and improved momentum, fueling debate among market watchers.
The company is experiencing strong growth in high-margin businesses such as Specialty Products, Technology, and private-label offerings, and expects over 50% of non-GAAP operating income to come from these segments. This supports structurally higher gross margins and is likely to drive earnings expansion. Investments in digital workflow, AI solutions, and integrated cloud-based practice management platforms are accelerating recurring SaaS revenues and client retention. Henry Schein is positioned to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.
Read the complete narrative.
Curious about the numbers driving this narrative? The forecast hinges on a blend of margin upgrades, aggressive digital investment, and surprising long-term financial assumptions. What bold moves tip the valuation scales? Dive in to uncover the real foundation behind the headline price target.
Result: Fair Value of $75.15 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent pricing pressures and ongoing staffing shortages could easily cap both Henry Schein’s earnings trajectory as well as its ambitious long-term outlook.