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Henry Schein Buys Stake in Marrodent; Spurs Polish Foothold
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Henry Schein (HSIC - Free Report) has recently completed its earlier announced purchase of 80% ownership of Marrodent, a Poland-based full-service distributor of dental consumables, equipment and dental laboratory supplies. We note that, this development is part of Henry Schein’s strategy to grow internationally through rapid expansion.
This buyout paves the way for Henry Schein to fortify its market position in Poland by foraying into the emerging dental markets in the region. In this regard, we note that the company has been serving the animal health customers in Poland since 2014.
Additionally, with this deal, Henry Schein will be able to strengthen its operations in various sectors across 27 countries. The deal is anticipated to close by the fourth quarter of 2016, after a thorough scrutiny by Poland's competition authorities. However, all the financial terms of the agreement were kept under wraps.
Per management, the integration of Marrodent should help Henry Schein tap into the bountiful dental market opportunities in Poland, which currently has as many as 26,000 practicing dentists and around 20,000 dental offices.
A glimpse at the global market trends reveal projections that hint at ‘dental consumables market’ growth at a CAGR of 6.8% to $35.3 billion by 2021 (Markets And Markets). Further, we are also impressed with the company’s promising performance in the second-quarter 2016, registering a 4% rise in global Dental sales on a year-over-year basis.
Buoyed by the strength in these trends, we presume Henry Schein, with its latest collaboration with Marrodent, will significantly gain traction in the dental care and related ancillary markets.
Share Price Movement
Over the past three months, the stock traded neck on neck with the Zacks categorized Medical/Dental-Supplies industry. However, the trend deteriorated very recently and currently Henry Schein is underperforming the broader industry. The stock is currently down 7.75%, wider than the 7.52% decline for the broader industry. However, estimate revision trend remains favorable for Henry Schein. The company saw three upward estimate revisions in the last 60 days as against no downward revisions. Also Henry Schein recorded a CAGR of 5.7% over the last five years for revenues, reflecting strong fundamentals. Accordingly, we expect the share price trend to revamp with the company's latest foray in Dental business in Poland.
Zacks Rank and Key Picks
Henry Schein currently has a Zacks Rank #3 (Hold). Some better-ranked medical stocks include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 33.1% over the last one year compared with the S&P 500’s 9.5% growth over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 18.2% over one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 119.3% gain in the past one year, way better than the S&P 500’s 5.9%. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Henry Schein Buys Stake in Marrodent; Spurs Polish Foothold
Henry Schein (HSIC - Free Report) has recently completed its earlier announced purchase of 80% ownership of Marrodent, a Poland-based full-service distributor of dental consumables, equipment and dental laboratory supplies. We note that, this development is part of Henry Schein’s strategy to grow internationally through rapid expansion.
This buyout paves the way for Henry Schein to fortify its market position in Poland by foraying into the emerging dental markets in the region. In this regard, we note that the company has been serving the animal health customers in Poland since 2014.
Additionally, with this deal, Henry Schein will be able to strengthen its operations in various sectors across 27 countries. The deal is anticipated to close by the fourth quarter of 2016, after a thorough scrutiny by Poland's competition authorities. However, all the financial terms of the agreement were kept under wraps.
Per management, the integration of Marrodent should help Henry Schein tap into the bountiful dental market opportunities in Poland, which currently has as many as 26,000 practicing dentists and around 20,000 dental offices.
A glimpse at the global market trends reveal projections that hint at ‘dental consumables market’ growth at a CAGR of 6.8% to $35.3 billion by 2021 (Markets And Markets). Further, we are also impressed with the company’s promising performance in the second-quarter 2016, registering a 4% rise in global Dental sales on a year-over-year basis.
Buoyed by the strength in these trends, we presume Henry Schein, with its latest collaboration with Marrodent, will significantly gain traction in the dental care and related ancillary markets.
Share Price Movement
Over the past three months, the stock traded neck on neck with the Zacks categorized Medical/Dental-Supplies industry. However, the trend deteriorated very recently and currently Henry Schein is underperforming the broader industry. The stock is currently down 7.75%, wider than the 7.52% decline for the broader industry. However, estimate revision trend remains favorable for Henry Schein. The company saw three upward estimate revisions in the last 60 days as against no downward revisions. Also Henry Schein recorded a CAGR of 5.7% over the last five years for revenues, reflecting strong fundamentals. Accordingly, we expect the share price trend to revamp with the company's latest foray in Dental business in Poland.
Zacks Rank and Key Picks
Henry Schein currently has a Zacks Rank #3 (Hold). Some better-ranked medical stocks include NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 33.1% over the last one year compared with the S&P 500’s 9.5% growth over the same period. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 18.2% over one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 119.3% gain in the past one year, way better than the S&P 500’s 5.9%. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>