Henry Schein

Methodology

Henry Schein's dental and medical supply distribution business generates relatively stable earnings from recurring purchases by healthcare practices. The company's relationships with dental offices provide defensive characteristics. This calculation works reasonably well given the essential nature of dental supplies, though dental practice consolidation and direct manufacturer relationships create competitive pressures on distribution margins.

Methodology

Henry Schein typically shows moderate PEG ratios reflecting steady but unspectacular growth in healthcare distribution markets. The company's scale advantages and value-added services support market positioning. Compare to other healthcare distributors to assess whether Henry Schein's dental market focus and practice management services justify valuations relative to broader medical supply competitors.

Methodology

Henry Schein does not pay dividends, prioritizing growth investments in dental practice management technology and strategic acquisitions to expand service offerings. Management focuses on reinvesting cash flows to strengthen competitive positioning. Total return depends on Henry Schein's ability to maintain relevance as dental practices consolidate and manufacturers explore direct distribution channels.