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DENTSPLY SIRONA Inc (XRAY)
NASDAQ:XRAY
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DENTSPLY SIRONA
(NASDAQ:XRAY)
46Neutral
Positive Factors
Market Performance
Revenue growth has been achieved in the German market for two consecutive quarters, despite previous challenges.
Product Launches
The company is expecting 20+ new product launches in 2025 and 2026, with recent launches like Orthophos SL in the Imaging segment showing successful results.
Negative Factors
Earnings Performance
4Q EPS of $0.26 comes in well below Street consensus of $0.43 and analyst's $0.42 estimate on revenue of $905 mln, which is an 11% decrease year over year.
Financial Guidance
Initial 2025 revenue guidance of $3,500-3,600 shows a 2 to 4% organic decline, which is well below the Street's view of $3,851 mln and analyst's view of $3,920 mln.
Market Challenges
The magnitude of the challenges, both for 4Q'24 and FY25 guidance, were worse across the board, affecting parts such as Implants and Imaging.
DENTSPLY SIRONA (XRAY) vs. S&P 500 (SPY)
Market Cap
$2.56B
Dividend Yield4.99%
Average Volume (3M)3.43M
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-4.34%
EPS Growth-634.89%
CountryUS
Employees14,000
SectorHealthcare
Sector Strength66
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-4.55
Shares Outstanding199,293,380
10 Day Avg. Volume3,718,261
30 Day Avg. Volume3,426,697
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)8.90
P/FCF Ratio8.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.81Price Target Upside46.72% Upside
Rating ConsensusHold
Number of Analyst Covering15
DENTSPLY SIRONA Business Overview & Revenue Model
Company DescriptionDENTSPLY SIRONA (XRAY) is a global leader in the design, manufacture, and distribution of dental equipment and consumables. The company operates in two main sectors: Dental & Healthcare and Consumables. It offers a comprehensive range of products, including dental implants, orthodontic products, endodontic instruments, and digital imaging systems. DENTSPLY SIRONA serves dental professionals and laboratories worldwide, providing innovative solutions that enhance patient care and streamline dental practices.
How the Company Makes MoneyDENTSPLY SIRONA generates revenue primarily through the sale of its dental equipment and consumables. The company's key revenue streams include the sale of dental instruments, imaging systems, treatment centers, dental laboratory products, and other related consumables. Additionally, DENTSPLY SIRONA benefits from a strong network of distributors and direct sales channels, allowing it to reach a broad customer base globally. Strategic partnerships and collaborations with dental professionals, academic institutions, and other healthcare entities further bolster its market presence and sales. The company's focus on innovation and technology development, such as digital dentistry and integrated solutions, also contributes to its revenue growth by meeting the evolving demands of the dental industry.
DENTSPLY SIRONA Financial Statement Overview
Summary
DENTSPLY SIRONA faces challenges with declining revenue and profitability, reflected in its income statement. The balance sheet shows increased leverage, which could pose risks if earnings do not improve. The cash flow statement suggests some resilience in cash generation, but consistent losses threaten long-term stability. Strategic actions might be necessary to address these financial pressures.Income Statement
DENTSPLY SIRONA has experienced significant revenue decline over the past years, with a decrease from $4.25 billion in 2021 to $3.79 billion in 2024. The company also shows a negative net income of $910 million in 2024, with net profit margins consistently negative. Although the gross profit margin remains relatively stable, EBIT and EBITDA margins have deteriorated, indicating challenges in operational efficiency.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased over the years, indicating higher leverage and potential financial risk. Stockholders' equity has decreased significantly, impacting the equity ratio. Despite this, the company's total assets remain robust, providing some stability.50
Neutral
Cash Flow
Operating cash flow has been relatively stable, with a slight increase in free cash flow in 2024. The free cash flow to net income ratio indicates a stronger cash position relative to earnings, despite negative net income. However, consistent negative net income presents a risk to sustainable cash flow generation.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.79B | 3.96B | 3.92B | 4.25B | 3.34B |
| Gross Profit | ||||
| 1.96B | 2.09B | 2.13B | 2.36B | 1.66B |
| EBIT | ||||
| -879.00M | -85.00M | 306.00M | 622.00M | 456.00M |
| EBITDA | ||||
| -518.00M | 232.00M | -677.00M | 972.00M | 336.00M |
| Net Income Common Stockholders | ||||
| -910.00M | -132.00M | -950.00M | 411.00M | -83.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 272.00M | 334.00M | 365.00M | 339.00M | 438.00M |
| Total Assets | ||||
| 5.75B | 7.37B | 7.64B | 9.22B | 9.34B |
| Total Debt | ||||
| 2.23B | 2.30B | 2.09B | 2.24B | 2.41B |
| Net Debt | ||||
| 1.95B | 1.97B | 1.73B | 1.90B | 1.97B |
| Total Liabilities | ||||
| 3.81B | 4.08B | 3.83B | 4.18B | 4.37B |
| Stockholders Equity | ||||
| 1.94B | 3.29B | 3.81B | 5.04B | 4.97B |
| Cash Flow | Free Cash Flow | |||
| 281.00M | 228.00M | 368.00M | 515.00M | 548.00M |
| Operating Cash Flow | ||||
| 461.00M | 377.00M | 517.00M | 657.00M | 635.00M |
| Investing Cash Flow | ||||
| -197.00M | -89.00M | -138.00M | -358.00M | -1.11B |
| Financing Cash Flow | ||||
| -302.00M | -307.00M | -329.00M | -379.00M | 490.00M |
DENTSPLY SIRONA Technical Analysis
Negative
12.82
Price Trends
15.71
Negative
17.30
Negative
20.57
Negative
Market Momentum
-0.89
Negative
34.69
Neutral
34.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XRAY, the sentiment is Negative. The current price of 12.82 is below the 20-day moving average (MA) of 13.87, below the 50-day MA of 15.71, and below the 200-day MA of 20.57, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XRAY.
DENTSPLY SIRONA Risk Analysis
DENTSPLY SIRONA disclosed 32 risk factors in its most recent earnings report. DENTSPLY SIRONA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DENTSPLY SIRONA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.77B | 20.21 | 14.15% | 2.49% | -0.85% | -23.40% | |
69 Neutral | $12.55B | 30.48 | 11.26% | ― | 3.54% | -3.41% | |
69 Neutral | $7.93B | 21.21 | 11.07% | ― | 2.71% | -3.26% | |
65 Neutral | $19.37B | 22.09 | 7.24% | 0.98% | 3.84% | -9.29% | |
50 Neutral | $5.14B | 3.10 | -40.94% | 2.95% | 17.94% | 2.00% | |
49 Neutral | $14.82B | 136.07 | -9.24% | 3.18% | -14.00% | -184.82% | |
46 Neutral | $2.56B | ― | -34.77% | 4.99% | -4.34% | -634.89% |
* Healthcare Sector Average
Performance Comparison
XRAY
DENTSPLY SIRONA
12.82
-16.62
-56.45%
ALGN
Align Tech
172.22
-128.60
-42.75%
BAX
Baxter International
28.54
-10.81
-27.47%
HSIC
Henry Schein
63.08
-8.96
-12.44%
PDCO
Patterson Companies
31.33
6.00
23.69%
ZBH
Zimmer Biomet Holdings
96.17
-23.55
-19.67%
DENTSPLY SIRONA Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -31.15% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Negative
The earnings call outlined several areas of growth and strategic progress, particularly in Europe and the imaging segment. However, these were overshadowed by significant challenges in the Byte segment, U.S. sales decline, and macroeconomic pressures resulting in impairments and a cautious outlook for 2025.Highlights
European Organic Sales Growth
In the fourth quarter, the company saw a return to organic sales growth in Europe of approximately 2%.
Imaging Segment Growth
Global growth in imaging was nearly 13%, driven by improved commercial execution and specific product relaunches.
SureSmile Expansion
The SureSmile segment continued to grow globally, achieving a nearly 4% increase over the prior year quarter and over 20% growth in Europe for Q4 and the full year.
Wellspect Performance
Wellspect exceeded estimated market growth rates, posting approximately 7% growth.
Strategic Board Additions
The Board was augmented with the addition of Dan Scavilla and Mike Barber, expected to aid in executing the transformation strategy.
Operational and Innovation Highlights
Completion of the U.S. launch of the MIS LYNX implant and a strong adoption of the DS Core platform, indicating progress in the company's digital ecosystem.
Lowlights
Byte Segment Challenges
The Byte business negatively impacted Q4 by $62 million due to customer refunds and voluntary suspension of sales, significantly affecting the orthodontic segment.
U.S. Sales Decline
U.S. sales declined 29.9%, driven by Byte, CAD/CAM, and EDS timing impacts.
Global Macroeconomic Pressures
Challenges included lower retail demand in CAD/CAM in the U.S. and sustained macroeconomic pressures affecting implants and equipment.
Goodwill and Intangibles Impairments
The company recorded noncash charges for impairments of goodwill and other intangibles of approximately $370 million net of tax.
Guidance for 2025
The company expects organic sales to be down 2% to 4% for 2025, including a negative Byte impact, and anticipates continued pressure from macroeconomic factors.
Company Guidance
During the Q4 2024 Dentsply Sirona earnings call, the company provided guidance that included an expectation for organic sales to decline by 2% to 4% in 2025, largely impacted by a negative contribution from Byte. Despite these anticipated challenges, Dentsply Sirona expects EBITDA margins to exceed 18% in 2025, with adjusted earnings per share projected to range between $1.80 and $2.00. The company also highlighted strategic decisions to improve performance, such as redeploying Byte resources to the SureSmile platform and exploring strategic alternatives for the Wellspect HealthCare business. Additionally, the company is undertaking initiatives to streamline its G&A footprint, which are not yet included in the 2025 outlook, but are expected to significantly reduce costs and align with market benchmarks.DENTSPLY SIRONA Corporate Events
M&A TransactionsBusiness Operations and Strategy
Dentsply Sirona Explores Strategic Options for Wellspect
Neutral
Feb 11, 2025
On February 11, 2025, Dentsply Sirona announced it is evaluating strategic alternatives for its Wellspect Healthcare business, a leading provider in bladder and bowel management care products. This decision is part of the company’s broader transformation strategy aimed at unlocking value for stakeholders and refocusing efforts on its core dental business. Wellspect has shown strong growth in recent years and holds a significant position in the $2 billion continence care market. The review process does not have a set timeline and may or may not result in a transaction.
Executive/Board ChangesBusiness Operations and Strategy
Dentsply Sirona Expands Board with Two New Directors
Neutral
Feb 6, 2025
On February 5, 2025, Dentsply Sirona’s Board announced the appointment of Michael J. Barber and Daniel T. Scavilla as new directors, expanding the Board from 10 to 11 members. Barber, with a background in product management and innovation at GE, and Scavilla, CEO of Globus Medical, are expected to contribute significantly to Dentsply Sirona’s transformation strategy and strategic growth. Concurrently, Dr. Dorothea Wenzel resigned from the Board due to the increased demands of her new chair nomination. The appointments aim to enhance expertise in healthcare, technology, and finance to support the company’s vision of transforming dentistry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.