Yahoo Finance Is There Now An Opportunity In DENTSPLY SIRONA Inc. (NASDAQ:XRAY)?
DENTSPLY SIRONA Inc. (NASDAQ:XRAY), is not the largest company out there, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at DENTSPLY SIRONA’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for DENTSPLY SIRONA
Is DENTSPLY SIRONA Still Cheap?
Great news for investors – DENTSPLY SIRONA is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $59.90, but it is currently trading at US$41.30 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that DENTSPLY SIRONA’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
Can we expect growth from DENTSPLY SIRONA?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a relatively muted revenue growth of 5.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for DENTSPLY SIRONA, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since XRAY is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on XRAY for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy XRAY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
So while earnings quality is important, it's equally important to consider the risks facing DENTSPLY SIRONA at this point in time. Case in point: We've spotted 1 warning sign for DENTSPLY SIRONA you should be aware of.
If you are no longer interested in DENTSPLY SIRONA, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
