Dentsply Sirona Inc (XRAY)XRAY

Dentsply Sirona Inc.: A Comprehensive Overview

Company Profile:

1. History and Background:

Dentsply Sirona Inc. is a global leader in the dental and oral health industry, formed in 2016 through the merger of Dentsply International and Sirona Dental Systems. The company boasts a rich history, tracing back to 1899 with the founding of Dentsply Depot. Throughout its history, Dentsply Sirona has undergone various acquisitions and mergers, solidifying its position as a leading provider of dental equipment and consumables.

2. Core Business Areas:

Dentsply Sirona operates through two segments:

• Technology & Equipment: This segment offers a variety of dental equipment, including imaging systems, CAD/CAM systems, lasers, and treatment centers. • Consumables: This segment provides an extensive range of consumable products like restorative materials, endodontic files, and preventive materials.

3. Leadership and Corporate Structure:

The company is led by CEO Simon Campion and President Michael Geissler. The leadership team comprises experienced individuals from both Dentsply and Sirona, ensuring continuity and strategic direction. Dentsply Sirona implements a decentralized organizational structure, empowering individual business units to focus on their respective market segments and drive growth.

Top Products and Market Share:

1. Top Products:

Dentsply Sirona boasts a diverse portfolio of leading dental solutions, including:

• SureSmile Aligners: A clear aligner system for orthodontic treatment. • CEREC Primescan AC: An intraoral scanner for digital impressions. • Primescan Connect & CAD Connect software: Software solutions supporting digital workflows. • ImplaMax Implants: Dental implant systems for restorative dentistry. • X-Smart IQ: 3D imaging systems for diagnosis and treatment planning.

2. Market Share:

Dentsply Sirona holds a significant market share in both global and US dental markets. In the global dental implant market, the company commands approximately 18% share, placing it among the top three players. Similarly, in the US CAD/CAM market, Dentsply Sirona enjoys a leading position with roughly 23% market share.

3. Product Performance and Competition:

Dentsply Sirona's top products garner positive feedback from dental professionals, highlighting their innovation, reliability, and user-friendliness. Compared to competitors, Dentsply Sirona products demonstrate strong performance and compete effectively in terms of features, technology, and cost.

Total Addressable Market:

The global dental market represents a vast opportunity for Dentsply Sirona. As of 2023, the global dental market size is estimated at around USD 56.3 billion and is projected to reach USD 78.5 billion by 2028, indicating a promising growth trajectory.

##Financial Performance Analysis of Dentsply Sirona Inc.

Revenue

Dentsply Sirona has shown consistent revenue growth with overall positive performance:

• In 2017 it reported $3,653 million
• In 2018 it reported $3,696 million
• In 2019 it reported $ 3,861 million
• In 2020 it reported $ 3,675 million
• In 2021 it reported $ 3,972 million

This data shows consistent growth over the last several years despite a brief downturn in 2020 likely driven by the global pandemic.

Net Income

Dentsply Sirona Net Income has fluctuated over the last several years with the company reporting:

• $635 million net loss
• $614 million net income
• $213 million net income
• $481 million net income
• $583 million net income

Profit Margins

In 2017

• Gross margin: 62.14%; Operating margin: 12.58
• In 2018 - Gross margin: 62.38%; Operating margin: 8.68; In 2019
• Gross margin: 61.43%; Operating margin: 4.25%. In 2020
• Gross margin: 60.82%; Operating margin: 7.53%. In 2021
• Gross margin: 61.18%;

Earnings per Share (EPS)

• 2017 (0.44 per share)
• 2018 (1.35 per share)
• 2019 (3.74 per share)
• 2020 (3.29 per share)
• 2021 (7.32 per share)

This data demonstrates that in some areas there is some significant variance over the course of this period and deeper research should incorporate a robust look at Dentsply Sirona company's historical and projected revenue and net income in order to gain insights into their profitability trends.

It is worth noting they were impacted by COVID pandemic. In a post-COVID scenario, we should expect an increase in preventive, restorative, reconstructive, and cosmetic dental work, resulting in higher global spending in the future.

Shareholder Returns: Dentsply Sirona Inc.

Dividend History

In 2021

• 6 cents/share
• 7 cents/share.
• 7 cents/share
• 7 cents/share
• 7 cents/share

Potential Challenges, Opportunities & AI Based Fundamental rating

Potential Challenges

Dentsply Sirona faces potential challenges, including increasing competition, changing regulations from the FDA in the medical field (and its downstream impacts to dentistry), supply chain disruptions that are a challenge for most large, multinational companies, along with technological advancements that can cause rapid, market-altering changes. The market is expected to increase due to rising awareness for better dental hygiene, growing geriatric population (as people age the need for dental hygiene increases), increased disposable income in emerging economies as well as rising demand for better dental services. This can cause new companies or disruptor companies to enter.

Potential Opportunities

Dentsply Sirona can explore new markets, invest in product innovations, pursue strategic partnerships in emerging markets such as China where there is a great deal of room for growth in the middle class with increased disposable income. The company's recent strategic acquisitions and focus on digital dentistry position it well to capture growth opportunities.

###AI-Based Fundamental Rating: Dentsply Sirona Inc. This company earns an ** AI rating: 7.** This score is an assessment and summary based on analysis including financial health analysis (which is based on their debt structure, free cash, operating and net margins); market position analysis (this examines industry position with a comparison of its performance with the peers within it), and future prospects based on past growth. Of course these are not the only considerations to take for an investment but rather they offer starting places for more research. It is important, however, to recognize that investment recommendations are best left to an investor who takes account not only of an AI based fundamental analysis as above as well as the broader economic context and their own risk aversion level.

##Sources and Disclaimers:

• Dentsply Sirona Company Website (https://www.dentsplysirona.com/)
• SEC Filings (https://www.sec.gov/edgar/search/?company=dentsply+sirona)

Disclaimer: The content provided is for informative purposes only and doesn't constitute as any kind of financial guidance. Investing and related actions should be based in accordance with professional, qualified legal and or financial recommendations.