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 driven by its announcement of a $120M restructuring plan, aimed at optimizing operations and improving profitability. The company's Q4 earnings miss and softer 2026 outlook were overshadowed by this strategic move. Analysts have a "Reduce" consensus rating on the stock, with two buy ratings and nine hold ratings (MarketBeat). The company's international revenue trends are being closely watched, with investors seeking signs of stabilization amid US weakness and tariff headwinds.

1.c. Company Highlights

Last Price	11.55
Change Percentage	-0.96%
Open	11.57
Previous Close	11.66
Market Cap ( Millions)	2308
Volume	915193.81
Year High	17.18
Year Low	9.85
M A 50	12.65
M A 200	13.23

FCF Yield	4.51%
Dividend Yield	5.54%
ROE	-35.24%
Debt / Equity	184.18%
Net Debt / EBIDTA	-4760.00%
Price To Book	1.72
Price Earnings Ratio	-3.86
Price To FCF	22.19
Price To sales	0.63
EV / EBITDA	-98.88

2. DENTSPLY SIRONA's Q4 2025 Earnings: A Step Towards Return to Growth

DENTSPLY SIRONA reported Q4 2025 revenue of $961 million, representing a 6.2% reported sales increase and 2.5% constant currency growth. However, adjusted EBITDA margins declined 10 basis points to 14.1% due to a 300 basis point decline in gross profit driven by lower volume, change in sales mix, and tariff impacts. The company's EPS came out at $0.27, slightly below estimates of $0.28.

Publication Date: Mar -01

                                    📋 Highlights
                                    Q4 2025 Revenue Growth::
                                                Report $961M revenue, 6.2% reported sales increase and 2.5% constant currency growth year-over-year.
Adjusted EBITDA Margin Decline::
                                                Margins fell 10 bps to 14.1%, driven by 300 bps gross profit drop from volume, mix, and tariff impacts.
2026 Guidance::
                                                Net sales projected at $3.5–3.6B (–3% to –1% operational growth), with EPS guidance of $1.40–1.50 for innovation and market investments.
Capital Deployment Strategy::
                                                Dividend elimination frees $128M annually, prioritizing debt retirement and share repurchases under restructuring plans.
R&D Investment Expansion::
                                                R&D spending to rise to 5% of revenue in 2026, targeting 6%+ by 2027–2028 to fuel growth in core and emerging segments.

                                

Guidance and Outlook

For 2026, DENTSPLY SIRONA expects net sales to be in the range of $3.5 billion to $3.6 billion, reflecting a negative 3% to negative 1% operational growth. The company anticipates positive sequential sales momentum in the second half of this year. Adjusted earnings per share are expected to be in the range of $1.40 to $1.50, reflecting accelerated investments in innovation, clinical education, and commercial investments.

Return to Growth Action Plan

The company's 24-month Return to Growth action plan is designed to restore momentum, strengthen execution, and deliver sustained profitable growth. The plan focuses on five pillars: customer-centric mindset, reuniting sustainable growth, empowering performance, scaling the organization, and financial strength. As CEO Dan Scavilla mentioned, "We're confident in our ability to unlock the company's full potential and believe that the opportunity ahead of us is substantial."

Valuation Metrics

Analysts estimate next year's revenue growth at 1.9%. With a P/E Ratio of -4.91, P/B Ratio of 2.19, and EV/EBITDA of -111.65, the market seems to be pricing in a challenging near-term outlook. However, the company's ROE is -35.18%, and ROIC is 5.73%, indicating potential for improvement in profitability.

Investment Priorities

DENTSPLY SIRONA plans to prioritize debt retirement and share repurchases following the elimination of the dividend, which frees up $128 million annually for capital deployment. The company expects to increase R&D spend by double digits to drive growth in key areas, with R&D percentage rising to around 5% in 2026 and targeting 6% in the future.

Commercial Investments and Growth Initiatives

The company is focused on innovation, clinical education, and commercial investments to drive sustained profitable growth globally. With a new contract with Patterson expected to be favorable, DENTSPLY SIRONA is poised to strengthen its position in the market. However, the implementation of steps to turn the implants business around is still ongoing, with a brand strategy still being worked on.

3. NewsRoom

Is Dentsply Sirona Stock a Buy After a Company Director Purchased 15,000 Shares?

Mar -13

Source: fool.com

XRAY & Siemens Healthineers Secure FDA Nod for Dental-Dedicated MRI

Mar -13

Source: zacks.com

DENTSPLY SIRONA Inc. (XRAY) Presents at Leerink Global Healthcare Conference 2026 Transcript

Mar -10

Source: seekingalpha.com

3 Healthcare Stocks Paying the Highest Dividends of 2026

Mar -10

Source: fool.com

First-ever Dental Dedicated MRI Validated in Clinical Trial and Cleared by FDA for Advanced Soft-Tissue Diagnostics

Mar -09

Source: globenewswire.com

DENTSPLY SIRONA (NASDAQ:XRAY) Shares Down 7.5% – Should You Sell?

Mar -08

Source: defenseworld.net

Dentsply Sirona to Participate in the Leerink Partners Global Healthcare Conference 2026

Mar -03

Source: globenewswire.com

Don't Overlook Dentsply (XRAY) International Revenue Trends While Assessing the Stock

Mar -03

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: 4.2/10

Value: 2.7

Growth: 7.3

Quality: 5.3

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

DENTSPLY SIRONA

A-Score: 4.2/10

Value: 7.3

Growth: 1.6

Quality: 2.8

Yield: 7.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

Teleflex

A-Score: 3.7/10

Value: 6.2

Growth: 3.4

Quality: 5.1

Yield: 1.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

Repligen

A-Score: 3.6/10

Value: 0.4

Growth: 5.0

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

Azenta

A-Score: 3.3/10

Value: 5.1

Growth: 4.4

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Cooper

A-Score: 3.2/10

Value: 2.6

Growth: 2.0

Quality: 5.8

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.77%

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 Q4 2025 Earnings: A Step Towards Return to Growth

Guidance and Outlook

Return to Growth Action Plan

Valuation Metrics

Investment Priorities

Commercial Investments and Growth Initiatives

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

11.55$

Current Price

11.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA