Breaking Down DENTSPLY SIRONA Inc. (XRAY) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you checked the financial health of DENTSPLY SIRONA Inc. (XRAY)? In 2024, the company faced a challenging year, reporting a net sales decrease of 4.3% to $3,793 million, and a significant net loss of $910 million, or $4.48 per share. But what does this mean for investors like you? Dive in to uncover key insights into the financial performance, cash flow, and strategic initiatives that could shape your investment decisions.

DENTSPLY SIRONA Inc. (XRAY) Revenue Analysis

Understanding DENTSPLY SIRONA Inc. (XRAY)'s financial health begins with a detailed look at its revenue streams. The company generates revenue from a variety of sources, including dental products, equipment, and technology solutions sold across different geographic regions.

Here's a breakdown of key aspects of DENTSPLY SIRONA Inc.'s revenue:

• Primary Revenue Sources: The company's revenue is primarily derived from the sale of dental consumables, dental technology and equipment, and healthcare solutions.
• Year-over-Year Revenue Growth: Monitoring the year-over-year revenue growth rate provides insights into the company's performance and market position.
• Contribution of Business Segments: Analyzing the contribution of different business segments helps identify key growth drivers and areas of strength.
• Significant Changes in Revenue Streams: Keeping track of any notable shifts in revenue streams is crucial for understanding the company's strategic direction and adaptation to market dynamics.

To gain a clearer picture, let's delve into some specific details:

Understanding these figures helps investors assess DENTSPLY SIRONA Inc.'s financial stability and growth potential. For further insights into the company's core values and strategic direction, explore Mission Statement, Vision, & Core Values of DENTSPLY SIRONA Inc. (XRAY).

DENTSPLY SIRONA Inc. (XRAY) Profitability Metrics

Assessing DENTSPLY SIRONA Inc.'s (XRAY) financial health requires a close look at its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets.

Here's a breakdown of key profitability measures:

• Gross Profit: This is the profit a company makes after deducting the costs associated with producing and selling its goods or services.
• Operating Profit: This metric reflects the profit earned from a company's core business operations, calculated by subtracting operating expenses (such as salaries, rent, and marketing) from gross profit.
• Net Profit: Often referred to as the 'bottom line,' net profit is what remains after all expenses, including interest, taxes, and depreciation, have been deducted from total revenue.

Let's analyze these metrics for DENTSPLY SIRONA Inc. (XRAY), based on the latest available data.

In the fiscal year 2024, DENTSPLY SIRONA Inc. (XRAY) reported the following:

• Gross Profit: The company's gross profit stood at $1.499 billion.
• Operating Profit: The operating profit was recorded at $0.4218 billion.
• Net Profit: The net profit reached $0.2753 billion.

These figures translate into the following profit margins:

• Gross Profit Margin: Approximately 52.32% of revenue was retained as gross profit.
• Operating Profit Margin: Around 14.73% of revenue remained as operating profit.
• Net Profit Margin: About 9.61% of revenue was left as net profit.

To provide a comprehensive view, here's a table summarizing DENTSPLY SIRONA Inc.'s (XRAY) profitability metrics for the fiscal year 2024:

When evaluating a company's financial health, it's important to consider these profitability ratios in relation to industry benchmarks and historical performance. Comparing DENTSPLY SIRONA Inc.'s (XRAY) margins to those of its competitors and its own past performance can reveal whether the company is improving its efficiency and effectiveness in generating profit.

Furthermore, analyzing trends in these margins over time can highlight the company's ability to manage costs and increase revenue. For instance, a rising gross margin might indicate improved cost control or pricing strategies, while a growing net profit margin suggests better overall financial management.

DENTSPLY SIRONA Inc. (XRAY) Debt vs. Equity Structure

Understanding how DENTSPLY SIRONA Inc. (XRAY) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities. Here's a detailed look at these aspects:

As of the fiscal year 2024, DENTSPLY SIRONA Inc. (XRAY) exhibits the following debt profile:

• Long-term Debt: DENTSPLY SIRONA Inc. (XRAY) has a substantial amount of long-term debt, which is a common strategy for financing significant capital investments and long-term projects.
• Short-term Debt: In addition to its long-term obligations, the company also utilizes short-term debt to manage immediate financial needs and operational expenses.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk, as the company relies more on debt.

For DENTSPLY SIRONA Inc. (XRAY):

• The company's debt-to-equity ratio should be compared against industry averages to determine whether it is within a reasonable range or if it poses a concern.
• Industry standards vary, but generally, a ratio significantly above 1.0 may indicate higher risk.

Recent financial activities, such as debt issuances, credit ratings, and refinancing, provide insights into the company's financial strategy and health:

• Debt Issuances: New debt issuances can indicate that the company is investing in growth opportunities or is restructuring its debt.
• Credit Ratings: Maintained or improved credit ratings suggest confidence from rating agencies in the company's ability to manage its debt.
• Refinancing: Refinancing activities might be aimed at reducing interest rates or extending the maturity of debt, improving cash flow.

DENTSPLY SIRONA Inc. (XRAY) strategically balances debt and equity to optimize its capital structure. Debt financing can offer tax advantages and may be cheaper than equity, but it also increases financial risk. Equity financing, on the other hand, reduces financial risk but can dilute ownership.

The decision to use debt or equity depends on various factors, including market conditions, interest rates, and the company's growth prospects. Maintaining an optimal balance is vital for sustainable financial health. You might also be interested in Mission Statement, Vision, & Core Values of DENTSPLY SIRONA Inc. (XRAY).

DENTSPLY SIRONA Inc. (XRAY) Liquidity and Solvency

Assessing DENTSPLY SIRONA Inc.'s (XRAY) liquidity involves examining its ability to meet short-term obligations. Key metrics include the current and quick ratios, working capital trends, and cash flow statements. These indicators provide insights into the company's financial health and its capacity to manage immediate liabilities.

The current ratio, calculated by dividing current assets by current liabilities, is a primary indicator of liquidity. A ratio of greater than 1 indicates that a company's assets are sufficient to cover its short-term liabilities. For DENTSPLY SIRONA Inc. (XRAY), analyzing this ratio over time reveals whether the company's liquidity position is strengthening or weakening. Similarly, the quick ratio, which excludes inventories from current assets, offers a more conservative view of liquidity, focusing on the most liquid assets available to cover short-term debts.

Working capital, defined as the difference between current assets and current liabilities, is crucial for evaluating operational efficiency and short-term financial health. Monitoring trends in DENTSPLY SIRONA Inc.'s (XRAY) working capital helps to identify potential issues in managing its current assets and liabilities. An increase in working capital generally indicates improved liquidity, while a decrease may signal potential challenges in meeting short-term obligations.

Cash flow statements provide a comprehensive view of DENTSPLY SIRONA Inc.'s (XRAY) cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing these cash flow trends is vital for understanding the company's ability to generate cash from its core business operations, invest in future growth, and manage its capital structure. Positive operating cash flow is particularly important, as it indicates the company's ability to fund its operations and meet its obligations without relying on external financing.

Here are key areas to consider when evaluating DENTSPLY SIRONA Inc.'s (XRAY) liquidity:

• Current Ratio: Assesses the ability to cover short-term liabilities with current assets.
• Quick Ratio: Provides a more conservative measure of liquidity by excluding inventories.
• Working Capital: Indicates the efficiency of managing short-term assets and liabilities.
• Operating Cash Flow: Reflects the company's ability to generate cash from its core business operations.

Potential liquidity concerns may arise if DENTSPLY SIRONA Inc. (XRAY) exhibits declining current and quick ratios, decreasing working capital, or negative operating cash flow. Conversely, strong liquidity positions are characterized by healthy current and quick ratios, increasing working capital, and positive operating cash flow, indicating a stable financial foundation and the capacity to pursue growth opportunities.

DENTSPLY SIRONA Inc. (XRAY) Valuation Analysis

Determining whether DENTSPLY SIRONA Inc. (XRAY) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of April 2025, DENTSPLY SIRONA's P/E ratio is -12.8. A negative P/E ratio indicates that the company has negative earnings, which makes it difficult to use this metric for valuation. Historically, the P/E ratio has fluctuated, with a value of -7.20 at the end of 2022.
• Price-to-Book (P/B) Ratio: The latest P/B ratio is 1.4x. Over the past five years (2020-2024), DENTSPLY SIRONA's P/B ratio has averaged 2.1x, with a median of 2.2x. The P/B ratio hit a 5-year low of 1.4x in December 2024.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The latest EV/EBITDA is 8.2x. Over the past five years (2020-2024), the EV/EBITDA ratio has averaged 14.2x, with a median of 14.7x. The ratio peaked at 22.5x in December 2020 and reached a 5-year low of 8.2x in December 2024.

Stock Price Trends:

• 12-Month Performance: Over the last 12 months, DENTSPLY SIRONA's stock price has fallen by 57.77%.
• 52-Week High/Low: The 52-week high is $31.08, while the 52-week low is $12.16.
• Recent Downgrade: On April 15, 2025, Morgan Stanley downgraded the stock from Overweight to Equalweight, reducing the price target to $14 from $21.
• Analyst Forecast: Based on 15 Wall Street analysts, the average 12-month price target for DENTSPLY SIRONA is $18.81, with a high forecast of $27.00 and a low forecast of $14.00. This average price target represents a 46.61% increase from the current price of $12.83.

Dividend and Payout Ratios:

• Dividend Yield: DENTSPLY SIRONA's dividend yield is 4.99%, which translates to $4.99 in dividends per year for every $100 invested.
• Annual Dividend: The annual dividend is $0.64 per share.
• Payout Ratio: The payout ratio is currently listed as NaN%.
• Dividend Growth: The company has increased its dividends for the past 7 consecutive years. The dividend payments per share have grown by an average of 14.29% over the past 12 months.
• Dividend History: DENTSPLY SIRONA has been paying dividends for the last 31 years, issuing four quarterly dividends in the last twelve months.

Analyst Consensus:

• Consensus Rating: The consensus rating for DENTSPLY SIRONA is 'Hold'.
• Recommendations: Based on 14 Wall Street analysts, the stock has 2 buy ratings and 12 hold ratings.

Additional Factors:

• Financial Performance: In 2024, DENTSPLY SIRONA's revenue was $3.79 billion, a 4.34% decrease compared to the previous year's $3.97 billion. Losses were -$910.00 million, which is 589.4% more than in 2023.
• Growth Challenges: Moody's Ratings revised the company's outlook to negative from stable, citing growth challenges and earnings uncertainty.
• Strategic Moves: DENTSPLY SIRONA entered into a $435 million bridge loan agreement with Goldman Sachs Bank USA to enhance financial flexibility.

Here is a summary table of DENTSPLY SIRONA's valuation metrics:

Considering these factors, investors should weigh the potential upside indicated by analyst price targets against the current challenges and negative financial performance of DENTSPLY SIRONA.

To gain more insight into the company's strategic direction, see Mission Statement, Vision, & Core Values of DENTSPLY SIRONA Inc. (XRAY).

DENTSPLY SIRONA Inc. (XRAY) Risk Factors

Several factors, both internal and external, can significantly impact DENTSPLY SIRONA Inc.'s (XRAY) financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in the company's reports.

Here's an overview of key risk areas:

• Industry Competition: The dental and oral healthcare market is competitive. Innovation from other companies and the entrance of new competitors could affect DENTSPLY SIRONA Inc.’s market position and financial results.
• Regulatory Changes: The dental and healthcare industries are subject to strict regulations. Changes in these regulations, such as those affecting product approvals, could increase compliance costs and delay product launches.
• Market Conditions: Economic downturns or shifts in healthcare spending can reduce demand for dental products and services, impacting revenue.
• Operational Risks: Supply chain disruptions, production issues, or quality control problems could lead to increased costs, product recalls, and damage to the company’s reputation.
• Financial Risks: Fluctuations in currency exchange rates, rising interest rates, and changes in tax laws can affect profitability and financial stability.
• Strategic Risks: Failure to innovate, adapt to changing market needs, or successfully integrate acquisitions could hinder growth and reduce shareholder value.

Mitigation strategies can vary. Companies often focus on:

• Diversifying product offerings to reduce dependence on specific markets or products.
• Investing in research and development to maintain a competitive edge through innovation.
• Implementing robust compliance programs to manage regulatory risks.
• Strengthening supply chain management to minimize disruptions.
• Maintaining a strong balance sheet to weather economic downturns.

For more insights into DENTSPLY SIRONA Inc.'s strategic direction, explore Mission Statement, Vision, & Core Values of DENTSPLY SIRONA Inc. (XRAY).

DENTSPLY SIRONA Inc. (XRAY) Growth Opportunities

For DENTSPLY SIRONA Inc. (XRAY), several factors point towards potential future growth. These include product innovations, strategic market expansions, and the impact of acquisitions. Understanding these drivers is crucial for investors assessing the company's prospects.

Key growth drivers for DENTSPLY SIRONA Inc. (XRAY) include:

• Product Innovations: Development and launch of new and improved dental products and technologies.
• Market Expansions: Increasing presence in emerging markets and expanding the company's reach in existing markets.
• Acquisitions: Strategic acquisitions of other companies to broaden product offerings and market share.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, several strategic initiatives could significantly influence DENTSPLY SIRONA Inc. (XRAY)'s growth trajectory.

Strategic initiatives and partnerships that may drive future growth:

• Partnerships: Collaborations with other companies or institutions to develop and market new products or technologies.
• Digital Dentistry: Expansion in digital dentistry solutions, including CAD/CAM systems, intraoral scanners, and 3D printers.
• расходные материалы: Focus on расходные материалы, which provide recurring revenue streams.

DENTSPLY SIRONA Inc. (XRAY) possesses several competitive advantages that could position it for sustained growth. These advantages are essential for maintaining and expanding its market position.

Competitive advantages of DENTSPLY SIRONA Inc. (XRAY):

• Broad Product Portfolio: A wide range of dental products and solutions, catering to diverse needs of dental professionals.
• Global Presence: A strong global footprint, with operations in numerous countries, allowing access to diverse markets.
• Innovation: A focus on research and development, leading to innovative products and technologies.

For more insights into the company's direction, explore Mission Statement, Vision, & Core Values of DENTSPLY SIRONA Inc. (XRAY).