Investment Thesis
Dentsply Sirona is unprofitable with negative operating income of -35.0M, negative free cash flow of -12.0M, and an interest coverage ratio of -1.9x indicating inability to service 2.0B in debt from operations. Combined with 3.0% YoY revenue decline and only 190.0M cash against substantial leverage, the company faces unsustainable financial stress requiring immediate operational turnaround or restructuring.
Strengths
- Strong gross margin of 48.5% demonstrates underlying product competitiveness and pricing power
- Current ratio of 1.53x provides near-term working capital cushion
- EPS improved 33% YoY despite ongoing losses, showing some operational progress
Risks
- Negative free cash flow of -12.0M indicates cash burn and inability to self-fund operations or debt service
- Interest coverage of -1.9x is critically negative, company cannot cover debt obligations from earnings
- Revenue declining 3.0% YoY combined with -4.0% operating margin threatens viability without major turnaround
- High leverage with 1.52x debt-to-equity ratio and only 190.0M liquidity against 2.0B long-term debt
- Quick ratio of 0.98x below 1.0 signals potential working capital stress
Key Metrics to Watch
- Operating income path to positive territory and sustainability
- Free cash flow inflection point and burn rate trajectory
- Revenue stabilization and return to growth momentum
- Interest coverage ratio and debt refinancing capacity
- Cash balance depletion rate and covenant compliance status
Financial Metrics
Revenue
880.0M
Net Income
-10.0M
EPS (Diluted)
$-0.05
Free Cash Flow
-12.0M
Total Assets
5.2B
Cash
190.0M
Profitability Ratios
Gross Margin
48.5%
Operating Margin
-4.0%
Net Margin
-1.1%
ROE
-0.8%
ROA
-0.2%
FCF Margin
-1.4%
Balance Sheet & Liquidity
Current Ratio
1.53x
Quick Ratio
0.98x
Debt/Equity
1.52x
Debt/Assets
74.8%
Interest Coverage
-1.94x
Long-term Debt
2.0B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-07T11:04:35.141110 |
Data as of: 2026-03-31 |
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