• In recent months, Dentsply Sirona reported softer quarterly results alongside a two-year decline in constant-currency revenue and weakening return on invested capital, raising questions about the effectiveness of its recent investments.
• This combination of shrinking underlying sales and negative returns on new capital suggests the company is struggling to turn portfolio spending into profitable growth.
• Next, we'll examine how these disappointing quarterly results and deteriorating return on invested capital shape Dentsply Sirona's broader investment narrative.

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What Is DENTSPLY SIRONA's Investment Narrative?

To own Dentsply Sirona today, you need to believe that its “Return to Growth” plan and refreshed board can eventually turn a low valuation and strong dental brand into sustainable, profitable operations, despite a difficult reset. The latest quarter’s softer numbers, two-year constant-currency revenue decline and weakening return on invested capital reinforce that the near term is about repair, not acceleration, and they likely blunt any immediate earnings or multiple-expansion catalysts. At the same time, the company is still paying a dividend that is not comfortably covered, against a backdrop of sizeable recent losses and a relatively new management team, so execution risk is front and center. The sharp share price pullback after the results simply underlines how little room for error investors are giving management right now.

However, investors should be aware of the tension between the dividend and ongoing losses. Despite retreating, DENTSPLY SIRONA's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span roughly US$13 to over US$45 per share, showing just how far apart expectations can be. When you set that against recent weak returns on invested capital and shrinking underlying sales, it becomes clear that your own view on execution risk and balance between income and turnaround potential will heavily shape how you see Dentsply Sirona’s prospects.

Explore 4 other fair value estimates on DENTSPLY SIRONA - why the stock might be worth just $12.97!

Build Your Own DENTSPLY SIRONA Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DENTSPLY SIRONA research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free DENTSPLY SIRONA research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DENTSPLY SIRONA's overall financial health at a glance.

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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.