Henry Schein, Inc. — Earnings Quality Grade F
HSIC · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 46 days, change +3 days YoY
AR growth 11.4% exceeds revenue growth 4.0%
Revenue 4.0%, CFFO -16.0%. Cash follows revenue
Expense Quality
Inventory 10.6% vs COGS 4.9%. Normal
CapEx growth 2.1% vs revenue 4.0%. Normal
SG&A/Gross Profit = 75.1%, exceeds 70%
Gross margin 31.1%, change -0.6pp. Stable
Cash Flow Quality
CFFO/NI = 1.79. Profits backed by cash
FCF $0.5B, FCF/NI = 1.31
Accruals ratio = -2.8%. Low accruals
Cash $0.2B covers only 5% of debt $3.4B
Balance Sheet Health
Goodwill+Intangibles $5.2B = 161% of equity. Over 50%
Debt/EBITDA = 3.6x. Healthy
Other assets grew 26.3% vs revenue 4.0%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 7% YoY. Normal
Manipulation Score
M-Score = -2.53 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09