SlowAppreciation Posted April 23, 2017 Share Posted April 23, 2017 Anyone looked at this company before? Large distributor in: dental, animal health, and medical (rev split 50/30/20). Both ends of the funnel are fragmented (many suppliers and many end customers), but with 2-3 distributors controlling most of the dental and vet supply markets. It's not cheap per se, but growth—both organic and via acq—has been strong for many years. Returns on capital are adequate, and they have reasonable levels of debt. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted April 24, 2017 Share Posted April 24, 2017 One of the better quality companies I know of and seems to be perpetually expensive ... Dentsply is similar and looks somewhat cheaper. Very interested to hear your thoughts after research. Link to comment Share on other sites More sharing options...
glorysk87 Posted April 24, 2017 Share Posted April 24, 2017 One of the better quality companies I know of and seems to be perpetually expensive ... Dentsply is similar and looks somewhat cheaper. Very interested to hear your thoughts after research. Dentsply and HSIC are very different companies. Dentsply manufactures products (they developed and manufacture one of the most popular CAD/CAM systems). HSIC is purely distribution and software support. Link to comment Share on other sites More sharing options...
SlowAppreciation Posted April 24, 2017 Author Share Posted April 24, 2017 One of the better quality companies I know of and seems to be perpetually expensive ... Dentsply is similar and looks somewhat cheaper. Very interested to hear your thoughts after research. I think Patterson is their big competitor in the dental space. Link to comment Share on other sites More sharing options...
Guest roark33 Posted April 25, 2017 Share Posted April 25, 2017 Patterson and AmerisourceBergen are the three distributors in this space. Link to comment Share on other sites More sharing options...
mrholty Posted April 25, 2017 Share Posted April 25, 2017 One of the better quality companies I know of and seems to be perpetually expensive ... This has been on my watchlist with a price that I update regularly yet it never gets cheap enough. Link to comment Share on other sites More sharing options...
Phaceliacapital Posted April 25, 2017 Share Posted April 25, 2017 Sorry I meant PDCO, don't know why I put down Dentsply. Link to comment Share on other sites More sharing options...
SlowAppreciation Posted April 27, 2017 Author Share Posted April 27, 2017 I don't think it's actually all that overpriced right now. My DCF gets ~$150/share (10% discount rate and 5% growth rate), which is only 10% discount to current prices for a company which has secular tailwinds (aging population, increasing medical cost, geographic expansion), consistent mid-to-high teens ROE, buys back shares, is asset-light, and #1 or #2 in the markets they operate in. Not cheap enough for me to take a position, but definitely one I'm keeping my eye on. Link to comment Share on other sites More sharing options...
glorysk87 Posted June 22, 2017 Share Posted June 22, 2017 HSIC is hitting my price targets, and considering the looming Amazon threat I'm deciding to sell rather than tough it out for a couple extra points. If Amazon never enters the space HSIC will continue to do very well, but it's a big unknown for me, and not a risk I'm keen on taking. Link to comment Share on other sites More sharing options...
SlowAppreciation Posted June 22, 2017 Author Share Posted June 22, 2017 HSIC is hitting my price targets, and considering the looming Amazon threat I'm deciding to sell rather than tough it out for a couple extra points. If Amazon never enters the space HSIC will continue to do very well, but it's a big unknown for me, and not a risk I'm keen on taking. I thought Amazon entered the medical supply space a little while ago, but I haven't heard anything about how they've been doing. I looked at PDCO too, which is interesting because they seem to be pretty much the same company, but smaller. So what is it about dental and pet supplies that are so "synergistic"? Link to comment Share on other sites More sharing options...
ccplz Posted June 23, 2017 Share Posted June 23, 2017 I don't think it's actually all that overpriced right now. My DCF gets ~$150/share (10% discount rate and 5% growth rate), which is only 10% discount to current prices for a company which has secular tailwinds (aging population, increasing medical cost, geographic expansion), consistent mid-to-high teens ROE, buys back shares, is asset-light, and #1 or #2 in the markets they operate in. Not cheap enough for me to take a position, but definitely one I'm keeping my eye on. 5% growth rate? how the fuck do you assume a terminal growth rate that's higher than terminal GDP growth rate? Link to comment Share on other sites More sharing options...
Phaceliacapital Posted June 6, 2018 Share Posted June 6, 2018 Anyone still looking at Henry or Patterson as a way to "play" the ever increasing pet market? Link to comment Share on other sites More sharing options...
glorysk87 Posted June 6, 2018 Share Posted June 6, 2018 Anyone still looking at Henry or Patterson as a way to "play" the ever increasing pet market? HSIC is spinning off their Animal Healthy business and merging it with Vets First Corp. Link to comment Share on other sites More sharing options...
mwtorock Posted September 26, 2018 Share Posted September 26, 2018 https://www.sprucepointcap.com/henry-schein-inc/ Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now