Henry Schein, Inc. (HSIC): A Bull Case Theory

We came across a bullish thesis on Henry Schein, Inc. on Show me the incentives...’s Substack. In this article, we will summarize the bulls’ thesis on HSIC. Henry Schein, Inc.'s share was trading at $67.41 as of September 10th. HSIC’s trailing and forward P/E were 21.68 and 12.95 respectively according to Yahoo Finance.

Henry Schein (HSIC), the global leader in dental and medical distribution, is at a pivotal juncture following CEO Stanley Bergman’s impending retirement after 45 years and the strategic entry of KKR, which now holds a 14.5% stake and two board seats. The company, with $12.7 billion in 2024 sales and an $8.5 billion market cap, has historically grown from a U.S. dental mail-order business into a multinational serving over 1 million customers across 33 countries. HSIC operates through three main segments: Global Distribution & Value-Added Services, Global Technology, and Global Specialty Products, with a strategic focus on high-margin SaaS and e-commerce solutions, alongside traditional dental and medical product distribution.

Despite the scale, HSIC has underperformed relative to peers over the past five years due to margin pressures, supply chain disruptions, and escalating SG&A and restructuring costs. Revenue grew modestly at a 5% CAGR from 2020–2024, while expenses surged, highlighting significant operational inefficiencies. Activist investor Ananym Capital has urged sharper cost control, divestment of non-core medical distribution assets, and capital reallocation toward share repurchases, which could unlock substantial shareholder value.

KKR’s involvement, coupled with a $250 million strategic investment and operational expertise, positions HSIC to aggressively pursue restructuring, consolidate headquarters, streamline corporate overhead, and accelerate e-commerce and SaaS growth. The company is targeting $75–100 million in cost savings in 2025, with stock buybacks further supporting shareholder value and enabling KKR to potentially exceed its 14.9% ownership threshold.

With high-margin SaaS adoption, operational improvements, and strategic asset rationalization, HSIC is poised to transition from a stagnant, sleepy giant into a lean, growth-focused enterprise. Even absent a full-scale sale or takeover, the combination of cost efficiencies, buybacks, and technology-driven growth offers compelling upside, creating an attractive risk/reward setup for investors over the next 18 months.

Previously we covered a bullish thesis on Owens & Minor, Inc. (OMI) by Busy Investor Stock Reports in February 2025, which highlighted the company’s deep value, strong operating leverage, and potential growth from the Rotech acquisition despite high debt levels. The stock has depreciated approximately 19% since our coverage. The thesis still stands as OMI’s U.S. manufacturing advantages support long-term value creation. Show Me the Incentives shares a similar perspective but emphasizes Henry Schein’s transformation under KKR, focusing on SaaS adoption, operational efficiency, and activist-driven restructuring.

Henry Schein, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held HSIC at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the potential of HSIC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.