DENTSPLY SIRONA Inc. (NASDAQ: XRAY)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000818479
Market Cap 3.16 Bn
P/B 0.48
P/E -2.04
P/S 0.79
ROIC (Qtr) -35.11
Div Yield % 3.71
Rev 1y % (Qtr) -4.94
Total Debt (Qtr) 2.48 Bn
Debt/Equity (Qtr) 1.68

About

DENTSPLY SIRONA Inc., commonly known as Dentsply Sirona, is a global leader in the dental industry, with a 137-year history of innovation and service. The company develops, manufactures, and markets comprehensive dental solutions, including technologically advanced dental equipment supported by cloud software solutions, as well as dental products and healthcare consumable products in urology and enterology under a strong portfolio of world-class brands. Dentsply Sirona's main business activities revolve around the development, manufacturing, and...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 221M provides exceptional 221x coverage of minority interest expenses 1M, showing strong core operations.
  • Robust tangible asset base of 3.32B provides 4.97x coverage of working capital 667M, indicating strong operational backing.
  • Tangible assets of 3.32B provide robust 4.37x coverage of other current liabilities 759M, indicating strong asset backing.
  • Cash position of 363M provides exceptional 363x coverage of minority interest expenses 1M, indicating strong liquidity.
  • Cash reserves of 363M provide comfortable 2.56x coverage of tax obligations 142M, showing strong fiscal management.

Bear case

  • Operating cash flow of 221M barely covers its investment activities of (144M), with a coverage ratio of -1.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 221M provides thin coverage of dividend payments of (127M) with a -1.74 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (144M) provide weak support for R&D spending of 152M, which is -0.95x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of (781M) show weak coverage of depreciation charges of 347M, with a -2.25 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 347M relative to operating cash flow of 221M, which is 1.57x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.78 2.75
EV to Cash from Ops. EV/CFO 7.32 39.87
EV to Debt EV to Debt 1.78 27.09
EV to EBIT EV/EBIT -2.82 32.86
EV to EBITDA EV/EBITDA -3.54 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF 9.48 0.88
EV to Market Cap EV to Market Cap 1.40 -4.26
EV to Revenue EV/Rev 1.10 252.61
Price to Book Value [P/B] P/B 0.48 6.13
Price to Earnings [P/E] P/E -2.04 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -6.94 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) -14.60 1.36
Dividend per Basic Share Div per Share (Qtr) 0.64 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 159.60 8.74
Interest Coverage Int. cover (Qtr) -9.52 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 16.57 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.64 414.02
Dividend Growth (1y) % Div 1y % (Qtr) 3.23 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -142.60 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,008.16 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -173.08 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -140.39 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) -112.08 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -78.08 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.39 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.64 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.35 0.03
Cash Ratio Cash Ratio (Qtr) 0.26 2.51
Current Ratio Curr Ratio (Qtr) 1.48 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 1.68 0.55
Interest Cover Ratio Int Coverage (Qtr) -9.52 -117.83
Times Interest Earned Times Interest Earned (Qtr) -9.52 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -12.00 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) -21.55 -2,472.59
EBT Margin % EBT Margin % (Qtr) -23.81 -2,442.52
Gross Margin % Gross Margin % (Qtr) 50.90 30.06
Net Profit Margin % Net Margin % (Qtr) -24.30 -2,438.49