This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Henry Schein Bites Into Brazil's Dental Market With Joint Venture

Stocks in this article: HSIC

NEW YORK (TheStreet) -- Henry Schein (HSIC) doesn't have name recognition but that could be changing. The largest dental distributor in the U.S. -- whose equipment and products are present in over 90% of U.S. dental offices -- is heading south of the border.

On Wednesday Henry Schein announced a 50% ownership in Dental Speed Graph, the largest direct marketing provider of dental consumable merchandise in Brazil. Dental Speed Graph also has a leading ecommerce platform in the country. This marks Henry Schein's first move into South America and the 27th country for the company.

In 2013, Dental Speed Graph had sales of $28 million. Founded in 2010, the Brazilian company continues to grow and expand. Currently, Dental Speed Graph has 170 team members covering 55,000 customers across Brazil.

In America, Henry Schein -- whose shares closed at $118.94, up 4% for the year to date --  is a play on  the Affordable Care Act and an aging population.

But in Brazil, the largest economy in Latin America and the seventh-largest economy in the world, the company is a play on an expanding middle class making more visits to the nation's 150,000 dentists. Population growth hit 200 million recently, earlier than the expected 2015. Brazil is now the fifth most populous country in the world.

That's a lot of teeth.

Moving into South America gives Henry Schein more territory besides North America, Europe and Australia/New Zealand.

In fiscal 2013, 61% of Henry Schein's total revenue came from North America. Europe and the rest of the world made up the remaining 32% and 7%, respectively.

Dental segment sales grew 4.7% to $5 billion in fiscal 2013. The key to the dental segment is international growth. Dental sales grew 3% to $3 billion in fiscal 2013. International dental sales hit $2 billion in the last fiscal year, representing growth of 7.5%. The recently reported first quarter found overall dental sales were up 8.9%, including international dental sales of $900 million. This represented year over year growth of 10.4%.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs