Assessing Henry Schein (HSIC) Valuation After Recent Share Price Pullback

Henry Schein (HSIC) shares have faced some pressure over the past month, slipping about 4%. Even so, with solid annual revenue and net income growth recently reported, investors may be reassessing where the stock stands in the healthcare space.

See our latest analysis for Henry Schein.

Henry Schein’s share price has pulled back about 4% in the past month and is down around 8% year-to-date, reflecting some ebbing near-term momentum. The longer-term trend has been muted, with a 1-year total shareholder return of -10% and just 5% over five years. However, recent operational gains could be setting the stage for a pickup if investor sentiment shifts.

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With Henry Schein trading below analyst price targets and showing stronger earnings, the key question is whether the market is discounting its true value or if any rebound is already reflected in the current price.

Most Popular Narrative: 13.7% Undervalued

With Henry Schein’s last close at $63.21 and the consensus narrative setting a fair value at $73.23, the gap points to a notable upside that is not yet priced in by the market. This context frames the ongoing debate around whether operational momentum and margin initiatives can translate to a meaningful re-rating.

The company is experiencing strong growth in high-margin businesses such as Specialty Products, Technology, and private-label offerings. It expects over 50% of non-GAAP operating income to come from these segments, supporting structurally higher gross margins and likely driving earnings expansion. Investments in digital workflow, AI solutions, and integrated cloud-based practice management platforms are accelerating recurring SaaS revenues and client retention. These factors are positioning Henry Schein to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.

Read the complete narrative.

What drives this bullish fair value? The narrative hangs on predictions of a category shift, rapid expansion in higher-margin specialties and a tech-powered recurring income model. Want to know which future profit assumptions and growth levers get analysts to this price target? Read the full narrative to see what could set Henry Schein apart in the coming years.

Result: Fair Value of $73.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pricing pressures in core categories and ongoing staffing shortages could limit margin recovery and stall Henry Schein’s expected earnings growth.

Find out about the key risks to this Henry Schein narrative.

Build Your Own Henry Schein Narrative

If you'd rather analyze the numbers for yourself or craft your perspective on Henry Schein, you can build your own interpretation in just minutes with Do it your way.

A great starting point for your Henry Schein research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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