Why Greenlight Capital’s Interest Puts Henry Schein in Focus

Greenlight Capital’s latest investor letter flagged Henry Schein (HSIC) as a new position, citing activist board additions, an upcoming CEO transition, and an emphasis on cost discipline and e-commerce execution.

Henry Schein’s share price has moved to US$75.48 after a 19.43% 90 day share price return. Its 1 year total shareholder return of a 5.65% decline contrasts with a 7.63% gain over five years, which may indicate a shift in performance over different time periods.

If Greenlight’s interest has you looking beyond a single healthcare distributor, it could be a good moment to scan other healthcare stocks that might fit your watchlist next.

With Henry Schein trading at US$75.48, sitting close to analyst targets and carrying a high intrinsic discount score, the key question is whether you are seeing mispricing or a market that is already banking on future growth.

Most Popular Narrative: 3.4% Undervalued

Henry Schein’s most followed narrative pegs fair value at about $78.14 compared with the current $75.48 share price, framing a small valuation gap that hinges on execution in higher margin areas, digital tools and cost efficiency.

The company is experiencing strong growth in high-margin businesses such as Specialty Products, Technology, and private-label offerings, and expects over 50% of non-GAAP operating income to come from these segments, supporting structurally higher gross margins and likely driving earnings expansion. Investments in digital workflow, AI solutions, and integrated cloud-based practice management platforms are accelerating recurring SaaS revenues and client retention, positioning Henry Schein to benefit from the ongoing digital transformation of healthcare, which should support both revenue growth and improved margins.

Curious how much earnings growth, margin expansion and share count assumptions sit behind that fair value tag, and what kind of future P/E multiple pulls it all together?

Result: Fair Value of $78.14 (UNDERVALUED)

However, you still have to weigh up risks such as stubborn competitive pricing in key categories and execution hiccups around the multiyear leadership and cost saving plans.

Build Your Own Henry Schein Narrative

If you see the numbers differently or simply prefer to test your own assumptions, you can build a custom story in just a few minutes with Do it your way.

A great starting point for your Henry Schein research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

If Henry Schein has sharpened your thinking, do not stop there. Use the Simply Wall St screener to spot other stocks that match your style and goals.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.