CluenexSchein (Henry) HSIC
Schein (Henry) scores weak on business quality (3.7 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Schein (Henry) does
Henry Schein supplies healthcare products and services to office-based dental and medical practitioners, selling consumables, equipment, and technology directly to clinicians who rely on its distribution network. The firm is positioning itself within the dental implants and prosthetics market forecast to reach $17.67 billion by 2031.
- What it does best
Henry Schein dominates dental supply distribution through sheer scale, supporting a gross margin of 31.3% that towers over peers like McKesson at 3.6%. This distribution footprint locks practitioners into its single-source ordering ecosystem.
- The main risk
Net debt has climbed to $2.95 billion against $700 million in operating cash flow, stretching the balance sheet. If supply chain disruptions or pricing pressures hit margins, debt service costs will constrain operating flexibility.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 5.8% and net margin at 3.0%, reflecting thin returns on its $13.6 billion revenue base. With an ROE of 12.4%, profitability lacks the firepower to compound efficiently as the business scales.
The company relies on customer switching costs anchored in practitioner workflow integration, sitting at the 12th percentile for gross margin and 20th for operating margin. Rivals struggle to replicate its direct-to-office sales force within a short timeframe.
Revenue ticked up to $13.6 billion with a growth rate of 4.0%, trailing behind historical capacity. Top-line expansion sits in the bottom quartile at a 26 sector percentile, showing stagnant momentum across its core distribution lines.
Total debt sits at $3.1 billion with an interest coverage ratio of 4.9x, meaning debt costs consume a noticeable slice of earnings. Free cash flow came in at $513 million, showing softer generation compared to historical peaks. Getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on HSIC
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Schein (Henry) scores weak on the Cluenex quality check (3.7 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 3, 2026, before the open.
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Cite this page: Cluenex, “Schein (Henry) (HSIC)”, https://cluenex.com/stocks/hsic/, data as of Oct 10, 2026.