Dentsply Sirona has gotten torched over the last six months - since April 2026, its stock price has dropped 27.3% to $8.62 per share. This may have investors wondering how to approach the situation.
Is now the time to buy Dentsply Sirona, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Do We Think Dentsply Sirona Will Underperform?
Even with the cheaper entry price, we’re sitting this one out for now. Here are three reasons we avoid XRAY, plus one stock we’d rather own.
1. Declining Constant Currency Revenue, Demand Takes a Hit
In addition to reported revenue, constant currency revenue is a useful data point for analyzing Dental Equipment & Technology companies. This metric excludes currency movements, which are outside of Dentsply Sirona’s control and are not indicative of underlying demand.
Over the last two years, Dentsply Sirona’s constant currency revenue averaged 5.7% year-on-year declines. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Dentsply Sirona might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. 
2. EPS Trending Down
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Sadly for Dentsply Sirona, its EPS declined by 13.6% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
3. Previous Growth Initiatives Have Lost Money
Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).
Dentsply Sirona’s five-year average ROIC was negative 12.5%, meaning management lost money while trying to expand the business. Its returns were among the worst in the healthcare sector.
Final Judgment
We cheer for all companies helping people live better, but in the case of Dentsply Sirona, we’ll be cheering from the sidelines. After the recent drawdown, the stock trades at 5.8× forward P/E (or $8.62 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. We’d suggest looking at one of our top software and edge computing picks.
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