XRAY - Embedded Expectations Analysis - 2021 03 25
DENTSPLY SIRONA, Inc. (XRAY:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 28.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about their organic sales growth, operating margins, and opportunities in the implant marketSpecifically, management may lack confidence in their ability to meet long-term organic sales growth guidance, achieve their annual clear aligner sales run rate target, and sustain Consumables segment improvements. In addition, they may have concerns about declines in patient volumes, their decision to raise R&D spend, and the margin impact of acquisition-related costs. Furthermore, management may lack confidence in their ability to sustain operating margin improvement, maintain margins while increasing their discretionary spending and e-commerce investment, and expand in the implant market through the Datum and Atlantis businesses. Moreover, they may be exaggerating the long-term opportunities in the implant market, their sales force's ability to focus on high-volume implant doctors, and the progress of their ESG implementation plan
DENTSPLY SIRONA is a manufacturer of dental products and technologies. The company's Consumables segment is responsible for the design, manufacture, sales and distribution of the company's dental consumable products which include preventive, restorative, endodontic, and dental laboratory products. The company's Technologies and Equipment segment includes responsibility for the design, manufacture, sales and distribution of the company's dental technology and equipment products and healthcare consumable products, including dental implants, computer-aided design/computer-aided manufacturing systems, orthodontic clear aligner products, imaging systems, treatment centers, instruments, and consumable medical device products.
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