Henry Schein (HSIC): Evaluating Valuation After New Biomerica Deal and Analyst Downgrade

Henry Schein (HSIC) is drawing attention after announcing a new agreement with Biomerica to distribute the inFoods Irritable Bowel Syndrome test throughout the United States. This move comes in addition to a recent analyst downgrade, prompting fresh discussions about the stock’s outlook.

See our latest analysis for Henry Schein.

While the Biomerica partnership adds another innovative healthcare product to Henry Schein’s portfolio, shares have struggled to build positive momentum. After some volatility tied to the recent analyst downgrade and buyback plans, the 1-year total shareholder return is down 13%, with further downside in the 3- and 5-year numbers. The next few months may clarify whether the current patch of negativity is a reset or a longer-term trend.

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With shares trading at a discount to analyst targets, but sentiment still cautious after the downgrade, the real question is whether Henry Schein is a value play in waiting or if expectations for a turnaround are already priced in.

Most Popular Narrative: 14% Undervalued

Henry Schein’s most widely followed narrative suggests the current share price of $62.98 trails a fair value of $73.23, highlighting potential upside as expectations for profit growth and margin gains shape the outlook.

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, which 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. This positions Henry Schein to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.

Read the complete narrative.

How do ambitious revenue projections and a push for bigger margins lead to that value? The numbers behind this narrative challenge conventional sector assumptions. Are recurring revenues and digital transformation enough to move the needle in this tight-margin industry? Uncover which forecasts really matter most. Click through to see what’s fueling this valuation.

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 and ongoing staffing shortages could slow growth and pose challenges to the positive outlook analysts have outlined for Henry Schein.

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

Build Your Own Henry Schein Narrative

If you want to see the numbers for yourself or approach things from your own angle, it takes less than three minutes to craft your own view. So why not 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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