HSIC

7→8: 10-K execution validated across all segments. KKR partnership announced = identifiable catalyst (>$200M operating income improvement expected). DCF P(above) 92.2%, DCF FV $145 vs $74 = 95% upside. Analyst consensus 20.7% upside. Above 200dma. Dental 52%/medical 32.5% specialty mix growing. Demographic tailwind (45+ population +10% through 2035) structural. All conv-8 criteria met: thesis validated + catalyst named + upside ≥20% + DCF P(above) well above 40%.

FY2025 10-K execution validates thesis across all metrics: core distribution 3-4% as expected, specialty/tech segments performing (dental 52%, medical 32.5%), software/specialty growth accelerating. Q3 record results, FY guidance raised to .88-.96 EPS (3-4% growth). KKR partnership announced with $200M+ operating income improvement expected over next few years — this is the catalyst we've been waiting for. Margin pressure from tariffs/input costs is a near-term headwind but temporary; management executing well on cost management. Customer consolidation risk acknowledged but not yet material to growth. Demographic tailwinds (45+ population growing 10% through 2035) remain structural. Moving conviction 6→7: fundamentals intact, execution strong, catalyst confirmed.