Is It Time To Consider Buying DENTSPLY SIRONA Inc. (NASDAQ:XRAY)?

DENTSPLY SIRONA Inc. (NASDAQ:XRAY), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$28.04 at one point, and dropping to the lows of US$23.63. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether DENTSPLY SIRONA's current trading price of US$25.55 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DENTSPLY SIRONA’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for DENTSPLY SIRONA

What Is DENTSPLY SIRONA Worth?

Good news, investors! DENTSPLY SIRONA is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $32.05, but it is currently trading at US$25.55 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because DENTSPLY SIRONA’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will DENTSPLY SIRONA generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of DENTSPLY SIRONA, it is expected to deliver a relatively unexciting top-line growth of 9.4% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since XRAY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on XRAY for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy XRAY. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing DENTSPLY SIRONA at this point in time. You'd be interested to know, that we found 1 warning sign for DENTSPLY SIRONA and you'll want to know about this.

If you are no longer interested in DENTSPLY SIRONA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.