# Henry Schein Inc. (HSIC) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HSIC/thesis · /stocks/HSIC/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: HSIC
step: "04"
title: Financial Snapshot — 3-Year P&L, Key Metrics
created: 2026-05-29
---

### Step 04: Financial Snapshot — 3-Year P&L Summary

#### Income Statement Summary

| Metric | FY2021 | FY2022 | FY2023 | 3-Yr CAGR |
|--------|--------|--------|--------|-----------|
| **Net Revenue** | $12,437M | $12,630M | $12,349M | -0.4% |
| **Cost of Sales** | $8,006M | $8,163M | $7,994M | |
| **Gross Profit** | $4,431M | $4,467M | $4,355M | -0.9% |
| **Gross Margin** | 35.6% | 35.4% | 35.3% | |
| **Operating Expenses** (SG&A) | $3,190M | $3,290M | $3,420M | |
| **Restructuring/Cyber Costs** | — | — | ~$50M | |
| **Operating Income (EBIT)** | $1,241M | $1,177M | $885M | -16.2% |
| **EBIT Margin** | 9.98% | 9.32% | 7.17% | |
| **Adj. EBIT (ex-cyber/one-time)** | ~$1,241M | ~$1,177M | ~$1,010M | |
| **Adj. EBIT Margin** | 9.98% | 9.32% | 8.18% | |
| **Net Interest Expense** | $(62)M | $(86)M | $(121)M | |
| **Pre-Tax Income** | $1,179M | $1,091M | $764M | |
| **Income Tax Expense** | $264M | $246M | $191M | |
| **Effective Tax Rate** | 22.4% | 22.5% | 25.0% | |
| **Net Income (GAAP)** | $835M | $734M | $478M | -24.4% |
| **Net Income Margin** | 6.7% | 5.8% | 3.9% | |
| **Adj. Net Income (ex-one-time)** | ~$835M | ~$734M | ~$640M | |
| **Diluted EPS (GAAP)** | $5.79 | $5.24 | $3.51 | |
| **Adj. Diluted EPS** | ~$5.79 | ~$5.58 | ~$4.72 | |
| **Diluted Shares Outstanding** | 144.2M | 140.1M | 136.2M | |

Note: FY2023 GAAP results were heavily impacted by the October 2023 cybersecurity incident. Adjusted figures exclude approximately $150-175M in cyber-related costs (lost revenue impact, recovery expenses, legal/insurance accruals). The effective tax rate was also higher in FY2023 due to unfavorable discrete items.

#### Adjusted EPS Bridge (FY2022 → FY2023)

| Factor | EPS Impact |
|--------|-----------|
| FY2022 Adj. EPS baseline | $5.58 |
| Organic volume/price improvement | +$0.30 |
| Cyber incident (lost revenue + costs) | -$(1.00) |
| Higher interest expense | -$(0.25) |
| Share count reduction (buybacks) | +$0.12 |
| FX headwind | -$(0.03) |
| **FY2023 Adj. EPS** | **~$4.72** |

#### Key Profitability Metrics

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Gross Margin | 35.6% | 35.4% | 35.3% |
| EBIT Margin (adj.) | 9.98% | 9.32% | 8.18% |
| EBITDA Margin (adj.) | 11.5% | 10.8% | 9.7% |
| Net Margin (adj.) | 6.7% | 5.8% | 5.2% |
| FCF Margin | ~4.0% | ~3.5% | ~2.5% |

#### EBITDA Build

| Component | FY2021 | FY2022 | FY2023 |
|-----------|--------|--------|--------|
| Operating Income (Adj.) | $1,241M | $1,177M | $1,010M |
| D&A | $185M | $200M | $210M |
| Stock-Based Compensation | $65M | $70M | $75M |
| **Adj. EBITDA** | **~$1,491M** | **~$1,447M** | **~$1,295M** |
| **Adj. EBITDA Margin** | **12.0%** | **11.5%** | **10.5%** |

#### Revenue Growth Components

| Year | Total Growth | Price/Mix | Volume | FX | M&A |
|------|-------------|-----------|--------|-----|-----|
| FY2021 | +18.5% | +3% | +12% | +1% | +2.5% |
| FY2022 | +1.5% | +2% | +1% | -2% | +0.5% |
| FY2023 | -2.2% | +1% | -3% | -1% | +0.8% |

#### Segment Profitability (Est.)

| Segment | Revenue | Operating Income | Operating Margin |
|---------|---------|-----------------|-----------------|
| Dental (FY2023) | ~$9.1B | ~$850M | ~9.3% |
| Medical (FY2023) | ~$3.1B | ~$250M | ~8.1% |
| Corporate | — | ~$(90M) | — |
| **Total (Adj.)** | **~$12.35B** | **~$1,010M** | **~8.2%** |

Note: Dental segment carries the software/technology sub-segment which has margins of 25-30%+ and disproportionately supports the blended dental margin.

#### Margins vs. Peers

| Company | Gross Margin | EBIT Margin | Context |
|---------|-------------|-------------|---------|
| **HSIC** | 35.3% | 8.2% (adj.) | Value-added dental dist. + software |
| Patterson (PDCO) | 28.0% | 6.0% | Dental + animal health distributor |
| McKesson (MCK) | 5.0% | 2.5% | Drug distributor (lower margin by nature) |
| Cardinal Health (CAH) | 3.8% | 1.8% | Drug distributor |
| AmerisourceBergen (ABC) | 3.5% | 1.7% | Drug distributor |

HSIC's gross margin premium (35% vs. 28% for PDCO, >30% vs. drug distributors) reflects:
1. Higher-value dental products (materials vs. pills)
2. Software revenue mix (~15% of revenue at 70%+ gross margins)
3. Value-added services bundled into pricing

#### Working Capital Dynamics

| Metric | FY2022 | FY2023 |
|--------|--------|--------|
| Days Sales Outstanding (DSO) | ~42 days | ~44 days |
| Days Inventory Outstanding (DIO) | ~38 days | ~40 days |
| Days Payable Outstanding (DPO) | ~48 days | ~50 days |
| Cash Conversion Cycle (CCC) | ~32 days | ~34 days |

HSIC's cash conversion cycle is modest for a distributor, though the cyber incident slightly elevated DSO as customers took longer to pay during the disruption period.

#### Forward Estimates (FY2024E)

| Metric | FY2024E (Consensus) |
|--------|---------------------|
| Revenue | ~$12.8B |
| Adj. EBIT | ~$830M-860M |
| Adj. EBIT Margin | ~6.5-6.7% |
| Adj. EPS | ~$4.60-4.90 |
| Adj. EBITDA | ~$1,050-1,080M |

Note: FY2024 consensus assumes continued cyber recovery, some normalization of legal/insurance costs related to cyber, and gradual HSOne subscription growth. The margin outlook is weaker than FY2022 as the company invests in technology/DSO sales infrastructure.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HSIC/fundamental

## Navigation

- Overview: /stocks/HSIC
- Financials (this page): /stocks/HSIC/financials
- Thesis: /stocks/HSIC/thesis
- Investment Memo: /stocks/HSIC/memo
- Coverage universe: /stocks