Sirona Dental Systems, Inc. (SIRO, Nasdaq) has served dentists for more than 130 years. In 1882, the company introduced the first electrical drill and in 1934 launched a small X-ray, enabling dental imaging for the first time. Today the company develops and markets a complete line of dental products, including dentist chairs, imaging and hygiene systems, and handheld tools. A large geographic footprint bodes well for growth. In fiscal 2009 ended September, 69% of sales were overseas, with Germany contributing 21% of total revenue. Sirona Dental cranks out a lot of free cash flow, and a sizable cash position provides flexibility to repurchase shares, repay debt, boost spending on research, and make acquisitions. Free cash flow per share totaled $2.58 for calendar year 2009, up from $1.00 in 2008. Cash totaled about $3.85 per share on December 31. March-quarter results are scheduled to be released May 5, with consensus estimates predicting an increase of 31% to $0.47 per share. Sirona Dental is being initiated as a Buy.
Richard Moroney, Upside
