DENTSPLY SIRONA Inc. (XRAY) | Investment Case

1. Company Snapshot

1.a. Company Description

DENTSPLY SIRONA Inc.manufactures and sells various dental products and technologies for professional dental market worldwide.The company operates through two segments, Technologies & Equipment, and Consumables.

The Technologies & Equipment segment provides dental equipment, such as treatment centers, imaging equipment, motorized dental handpieces, and other instruments for dental practitioners and specialists; dental CAD/CAM technologies for dental offices to support various digital dental procedures, including dental restorations; dentist-directed clear aligner solutions, SureSmile, and direct-to-consumer clear aligner solutions, as well as high frequency vibration technology device; implants; and urology catheters and other healthcare-related consumable products.The Consumables segment offers endodontic products comprising drills, filers, sealers, irrigation needles, and other tools or single-use solutions, which support root canal procedures; restorative products that include artificial teeth, dental ceramics, digital dentures, precious metal dental alloys, and crown and bridge porcelain products.It also provides small equipment products, which comprise intraoral curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers, as well as dental anesthetics, prophylaxis paste, dental sealants, impression materials, teeth whiteners, and topical fluoride.

The company was founded in 1877 and is headquartered in Charlotte, North Carolina.

Show Full description

1.b. Last Insights on XRAY

DENTSPLY SIRONA Inc.'s recent performance was negatively impacted by weaker-than-expected Q3 earnings, with quarterly earnings of $0.37 per share missing the Zacks Consensus Estimate of $0.45 per share. The company's 2025 EPS guidance was also lowered amid segment weakness. Additionally, a law firm, Halper Sadeh LLC, is investigating whether certain officers and directors breached their fiduciary duties to shareholders, which may have contributed to the negative sentiment. The company has introduced a Return-to-Growth action plan to improve performance.

1.c. Company Highlights

Last Price	11.28
Change Percentage	-1.31%
Open	11.52
Previous Close	11.43
Market Cap ( Millions)	2251
Volume	1953315
Year High	20.6
Year Low	9.85
M A 50	11.71
M A 200	14.01

FCF Yield	3.55%
Dividend Yield	5.67%
ROE	-47.74%
Debt / Equity	167.79%
Net Debt / EBIDTA	-490.05%
Price To Book	1.52
Price Earnings Ratio	-2.55
Price To FCF	28.14
Price To sales	0.62
EV / EBITDA	-10.11

2. DENTSPLY SIRONA's Q3 2025 Earnings: A Step Towards Return-to-Growth

DENTSPLY SIRONA reported Q3 2025 global sales of $904 million, a decrease of 5% as reported or negative 8% on a constant currency basis. The company's adjusted EBITDA margin was 18.4%, up 50 basis points versus the prior year. Non-GAAP earnings per share came in at $0.37, down $0.13 versus the prior year, missing analyst estimates of $0.45. Cash from operations was $79 million, and the ending cash balance was $363 million.

Publication Date: Nov -08

                                    📋 Highlights
                                    Revised 2025 Outlook::
                                                Net sales projected between $3.6B–$3.7B, with constant currency sales declining -5% to -4% year-over-year.
Q3 2025 Financials::
                                                Global sales fell 5% ($904M), adjusted EBITDA rose to 18.4%, and cash from operations reached $79M.
Return-to-Growth Pillars::
                                                Four strategic priorities include customer-centricity, U.S. business revitalization, people empowerment, and operational innovation.
Leadership Changes::
                                                Appointed Aldo Denti (CCO) and Dustin Shields (CTO) to lead commercial transformation and cross-functional improvements.

                                

Return-to-Growth Action Plan

The company's President and CEO, Dan Scavilla, outlined the 4 key pillars of the Return-to-Growth action plan: putting customers at the center, reigniting the U.S. business, empowering people to power performance, and evolving operations to fuel innovation. Scavilla emphasized the importance of creating a global customer service and technical service organization, simplifying interactions, and increasing strategic investments. As Scavilla noted, "We're tired of talking and need to focus on execution and pointing to numbers."

Operational Efficiencies and Cost Savings

The company is making changes to its commercial organization, including aligning teams, accelerating decision-making, and positioning DENTSPLY SIRONA to compete and win with greater speed and focus. The company is also enhancing operational efficiencies, including resource consolidation, standardized packaging, and advanced planning and forecasting to favorably impact working capital and product costs.

Valuation and Outlook

With a P/E Ratio of -2.35 and an EV/EBITDA of -6.31, the market is pricing in significant challenges for the company. Analysts estimate next year's revenue growth at 1.0%. The company's dividend yield is 5.72%, which may be attractive to income investors. However, the company's ROE and ROIC are negative, indicating significant challenges ahead. As the company executes its Return-to-Growth plan, investors will be watching for signs of improvement in sales, margin, and cash flow.

Key Drivers of Growth

The company is focusing on changing customer service and technical service under one team, setting up implant strategies, and continuing to invest in Endo. Scavilla mentioned that they're looking to increase R&D efficiency and mitigate risk by pulling forward investments in R&D to position better strength in 2026 and beyond.

3. NewsRoom

Brandes Investment Partners LP Has $5.98 Million Holdings in DENTSPLY SIRONA Inc. $XRAY

Dec -03

Source: defenseworld.net

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) Receives Average Recommendation of “Hold” from Brokerages

Dec -01

Source: defenseworld.net

Creative Planning Increases Stock Holdings in DENTSPLY SIRONA Inc. $XRAY

Nov -27

Source: defenseworld.net

3 Healthcare Stocks Topping a 2025 List of Dividend Yields

Nov -13

Source: fool.com

DENTSPLY SIRONA Inc. $XRAY Stock Position Increased by Bank of Montreal Can

Nov -11

Source: defenseworld.net

Brickwood Asset Management Adds $19 Million in Dentsply Sirona (NASDAQ: XRAY) Shares: Should Investors Buy the Turnaround Stock?

Nov -10

Source: fool.com

Dentsply Sirona Stock Sinks On Missed Expectations, Lowered 2025 Guidance; CEO Unveils Return-To-Growth Plan

Nov -06

Source: benzinga.com

XRAY Stock Declines on Q3 Earnings Miss & Lower 2025 EPS View

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.10%)

6. Segments

Essential Dental Solutions

Expected Growth: 1.2%

Essential Dental Solutions' 1.2% growth driven by increasing adoption of digital dentistry, rising demand for preventive care, and expansion in emerging markets. Additionally, DENTSPLY SIRONA's strategic investments in innovation, customer education, and distribution channels contribute to growth.

Connected Technology Solutions

Expected Growth: 1.1%

DENTSPLY SIRONA's Connected Technology Solutions growth is driven by increasing adoption of digital dentistry, rising demand for practice management and patient engagement solutions, and expansion into emerging markets. Additionally, the company's investments in artificial intelligence, cloud-based platforms, and strategic partnerships are contributing to its growth.

Orthodontic and Implant Solutions

Expected Growth: 0.9%

DENTSPLY SIRONA's Orthodontic and Implant Solutions segment growth is driven by increasing demand for aesthetic dentistry, adoption of digital technologies, and expansion in emerging markets. Additionally, the company's strong brand reputation, innovative products, and strategic partnerships contribute to its 0.9% growth.

Wellspect Healthcare

Expected Growth: 1.3%

Wellspect Healthcare's 1.3% growth is driven by increasing demand for urology and continence care products, expansion in emerging markets, and strategic partnerships. Additionally, DENTSPLY SIRONA's strong distribution network and investments in digital technologies have enhanced customer experience, contributing to the segment's growth.

7. Detailed Products

Imaging Systems

DENTSPLY SIRONA's Imaging Systems provide dental professionals with advanced digital imaging solutions, including 2D and 3D imaging, intraoral sensors, and panoramic systems.

CAD/CAM Systems

DENTSPLY SIRONA's CAD/CAM Systems enable dental professionals to design and manufacture dental restorations, including crowns, bridges, and implants, with precision and accuracy.

Treatment Centers

DENTSPLY SIRONA's Treatment Centers provide dental professionals with integrated systems for dental treatment, including dental chairs, lights, and suction systems.

Orthodontic Products

DENTSPLY SIRONA's Orthodontic Products include a range of solutions for orthodontic treatment, including brackets, bands, and archwires.

Endodontic Products

DENTSPLY SIRONA's Endodontic Products provide dental professionals with solutions for root canal treatment, including files, reamers, and obturators.

Restorative Products

DENTSPLY SIRONA's Restorative Products include a range of solutions for direct and indirect restorative dentistry, including composites, adhesives, and cements.

Laboratory Products

DENTSPLY SIRONA's Laboratory Products provide dental technicians and laboratory professionals with solutions for dental laboratory procedures, including impression materials and dental ceramics.

8. DENTSPLY SIRONA Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

DENTSPLY SIRONA Inc. operates in the dental industry, where substitutes are limited. However, the company faces some threat from alternative dental materials and technologies.

Bargaining Power Of Customers

DENTSPLY SIRONA Inc. has a diverse customer base, including dental professionals and laboratories. The bargaining power of customers is low due to the company's strong brand reputation and wide range of products.

Bargaining Power Of Suppliers

DENTSPLY SIRONA Inc. relies on a network of suppliers for raw materials and components. The bargaining power of suppliers is medium, as the company has some flexibility in sourcing materials but is still dependent on key suppliers.

Threat Of New Entrants

The dental industry has high barriers to entry, including regulatory hurdles and significant capital requirements. The threat of new entrants is low, as new companies would need significant investment to compete with established players like DENTSPLY SIRONA Inc.

Intensity Of Rivalry

The dental industry is highly competitive, with several established players competing for market share. DENTSPLY SIRONA Inc. faces intense rivalry from companies like 3M, Danaher, and Straumann.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	39.77%
Debt Cost	3.95%
Equity Weight	60.23%
Equity Cost	8.92%
WACC	6.94%
Leverage	66.02%

11. Quality Control: DENTSPLY SIRONA Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Merit Medical Systems

A-Score: 4.4/10

Value: 2.6

Growth: 7.3

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

DENTSPLY SIRONA

A-Score: 4.0/10

Value: 7.7

Growth: 1.4

Quality: 3.1

Yield: 6.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

Teleflex

A-Score: 3.6/10

Value: 4.7

Growth: 3.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

Repligen

A-Score: 3.0/10

Value: 0.2

Growth: 5.0

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

Cooper

A-Score: 2.9/10

Value: 2.9

Growth: 1.2

Quality: 5.9

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Azenta

A-Score: 2.8/10

Value: 5.1

Growth: 2.6

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.61%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.94%

DENTSPLY SIRONA Inc. - US24906P1093

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on XRAY

1.c. Company Highlights

Less Volatile

Higher Yield

Average Quality

Revenues Miss

Stable Momentum

Earnings Miss

Earnings Beats

Revenues Beats

Lower Quality

Weak Momentum

Lower Growth

2. DENTSPLY SIRONA's Q3 2025 Earnings: A Step Towards Return-to-Growth

Return-to-Growth Action Plan

Operational Efficiencies and Cost Savings

Valuation and Outlook

Key Drivers of Growth

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.10%)

6. Segments

Essential Dental Solutions

Expected Growth: 1.2%

Connected Technology Solutions

Expected Growth: 1.1%

Orthodontic and Implant Solutions

Expected Growth: 0.9%

Wellspect Healthcare

Expected Growth: 1.3%

7. Detailed Products

Imaging Systems

CAD/CAM Systems

Treatment Centers

Orthodontic Products

Endodontic Products

Restorative Products

Laboratory Products

8. DENTSPLY SIRONA Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: DENTSPLY SIRONA Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.28$

Current Price

11.28$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA