Nasdaq:XRAY
DENTSPLY SIRONA Inc.
A major global manufacturer of dental equipment and consumables facing significant headwinds from recent restructuring charges and declining revenue trends.
Key Metrics
Investment Thesis
Bull Case
Investors may view XRAY as a value opportunity if the company successfully turns its restructuring around and stabilizes its declining revenue trend, potentially unlocking hidden value from its massive goodwill and intangible asset base once impairment charges cease. The strong operating cash flow of $235M provides a buffer to service debt and fund R&D of $150M, positioning the firm for eventual profitability if market share in growing digital dentistry segments continues to expand.
Bear Case
The stock faces severe headwinds with four consecutive years of revenue decline from $3.92B in 2022 to $3.68B in 2025, coupled with persistent net losses ranging from -$950M to -$598M that indicate a lack of sustainable earnings power. With total liabilities reaching $4.09B against only $1.34B in shareholders' equity, the balance sheet is fragile, and the massive non-cash adjustments totaling $811M distort true profitability, making it difficult for investors to discern a clear path to recovery.
About DENTSPLY SIRONA Inc.
DENTSPLY SIRONA Inc. (XRAY) is a global leader in dental products and services, manufacturing and distributing equipment, consumables, and digital solutions primarily to professional dentists and oral health care providers worldwide. The company operates through segments focused on dental systems, orthodontic appliances, and general practice supplies, leveraging a vast distribution network to serve markets across North America, Europe, and Asia.
Analysis
Management Discussion
Despite generating $3.68B in revenue for the latest year, the company reported a net loss of $598M, heavily impacted by non-cash amortization charges of $211M and accumulated other comprehensive losses of $639M. While operating cash flow remained positive at $235M, indicating underlying operational liquidity, the persistent net deficits and significant debt load of $2.02B suggest that earnings quality is currently compromised by substantial non-operating adjustments and legacy integration costs.
Industry Overview
The global dental care market is expanding due to increasing prevalence of oral health issues and aging populations, yet consolidation and intense competition from both established players and digital-native disruptors are compressing margins. Companies in this sector must balance high fixed costs associated with manufacturing specialized equipment against the need for continuous innovation in digital workflows and patient-centric care models.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.92B | $3.96B | $3.79B | $3.68B |
| Cost of Revenue | $1.79B | $1.88B | $1.83B | $1.84B |
| Gross Profit | $2.13B | $2.09B | $1.96B | $1.84B |
| Operating Expenses | $3.06B | $2.17B | $2.84B | $2.26B |
| Operating Income | $-937.0M | $-85.0M | $-879.0M | $-422.0M |
| R&D | $174.0M | $184.0M | $165.0M | $150.0M |
| G&A | $1.59B | $1.61B | $1.60B | $1.44B |
| Stock-Based Comp | $59.0M | $46.0M | $39.0M | $33.0M |
| D&A | $328.0M | $343.0M | $349.0M | $352.0M |
| Depreciation | $119.0M | $132.0M | $133.0M | $141.0M |
| Amortization | $209.0M | $211.0M | $216.0M | $211.0M |
| Other OpEx | $1.30B | $374.0M | $1.07B | $674.0M |
| Non-Operating Income | $-118.0M | $-90.0M | $-57.0M | $-64.0M |
| Interest Expense | — | $81.0M | — | — |
| Pre-Tax Income | $-1.05B | $-175.0M | $-936.0M | $-486.0M |
| Income Tax | $-105.0M | $-43.0M | $-26.0M | $112.0M |
| Continuing Ops | $-950.0M | $-132.0M | $-910.0M | $-598.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-950.0M | $-132.0M | $-910.0M | $-598.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-950.0M | $-132.0M | $-910.0M | $-598.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.89B | $1.97B | $1.75B | $2.02B |
| Cash & Equivalents | $365.0M | $334.0M | $272.0M | $326.0M |
| Inventory | $627.0M | $624.0M | $564.0M | $642.0M |
| Prepaid Expenses | $269.0M | $320.0M | $354.0M | $367.0M |
| Other Current Assets | $632.0M | $695.0M | $556.0M | $688.0M |
| Long-Term Assets | $5.75B | $5.40B | $4.01B | $3.41B |
| PP&E (Net) | $761.0M | — | — | — |
| Intangibles | $1.90B | $1.71B | $1.21B | $974.0M |
| Goodwill | $2.69B | $2.44B | $1.60B | $1.15B |
| Operating Leases | $200.0M | $178.0M | $136.0M | $139.0M |
| Other LT Assets | $198.0M | $1.08B | $1.07B | $1.15B |
| Total Assets | $7.64B | $7.37B | $5.75B | $5.43B |
| Current Liabilities | $1.17B | $1.43B | $1.59B | $1.34B |
| Accounts Payable | $279.0M | $305.0M | $241.0M | $300.0M |
| Current Debt | $1.0M | $77.0M | $128.0M | $228.0M |
| Current Leases | $54.0M | $56.0M | $46.0M | $47.0M |
| Deferred Revenue | $84.0M | $91.0M | $95.0M | $74.0M |
| Taxes Payable | $46.0M | $49.0M | $45.0M | $30.0M |
| Other Current Liab | $-21.0M | $98.0M | $280.0M | $-36.0M |
| Long-Term Liabilities | $2.66B | $2.65B | $2.22B | $2.75B |
| Long-Term Debt | $1.83B | $1.80B | $1.59B | $2.02B |
| LT Operating Leases | $149.0M | $125.0M | $91.0M | $93.0M |
| Other LT Liab | $686.0M | $673.0M | $495.0M | $605.0M |
| Total Liabilities | $3.83B | $4.08B | $3.81B | $4.09B |
| Shareholders' Equity | $3.81B | $3.29B | $1.94B | $1.34B |
| Paid-In Capital | $6.63B | $6.64B | $6.64B | $6.64B |
| Retained Earnings | $456.0M | $205.0M | $-835.0M | $-1.56B |
| AOCI | $-628.0M | $-636.0M | $-730.0M | $-639.0M |
| Total L&E | $7.64B | $7.37B | $5.75B | $5.43B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-950.0M | $-132.0M | $-910.0M | $-598.0M |
| Non-Cash Adjustments | $1.37B | $386.0M | $1.58B | $811.0M |
| Working Capital Changes | $98.0M | $123.0M | $-213.0M | $22.0M |
| Cash from Operations | $517.0M | $377.0M | $461.0M | $235.0M |
| Capital Expenditures | $149.0M | — | — | — |
| Cash from Investing | $-138.0M | $-89.0M | $-197.0M | $-132.0M |
| Debt Issuances | — | $0 | $1.0M | $553.0M |
| Debt Repayments | $2.0M | $7.0M | $88.0M | $147.0M |
| Share Buybacks | $150.0M | $300.0M | $250.0M | $0 |
| Dividends Paid | $104.0M | $116.0M | $126.0M | $128.0M |
| Cash from Financing | $-329.0M | $-307.0M | $-302.0M | $-80.0M |
| FX Effect | $-24.0M | $-12.0M | $-24.0M | $31.0M |
| Net Change in Cash | $26.0M | $-31.0M | $-62.0M | $54.0M |
| Beginning Cash | $339.0M | $365.0M | $334.0M | $272.0M |
| Ending Cash | $365.0M | $334.0M | $272.0M | $326.0M |
Frequently Asked Questions
How does DENTSPLY SIRONA Inc. make money?
The company's revenue is driven by its Dental Systems segment offering high-volume products like handpieces and curing lights, the Orthodontic Appliances segment providing aligners and retainers, and the General Practice segment supplying essential disposables and tools to a broad base of dental professionals.
What are the main risks for XRAY?
The company faces substantial risks from ongoing restructuring costs and impairment charges related to acquired intangible assets, exposure to foreign currency fluctuations affecting international sales, potential regulatory changes impacting dental product approvals, and the competitive pressure on margins from rising raw material and logistics costs.
What is XRAY's competitive advantage?
DENTSPLY SIRONA benefits from an extensive global distribution network that ensures rapid product availability, a strong brand reputation established through decades of innovation in dental technology, and significant scale advantages in manufacturing complex orthodontic appliances like Invisalign aligners.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.