DENTSPLY International (XRAY)

XRAY has a lot of little things like that to like about it; XRAY is starting to push into the $5.0 billion+ market cap range, and the CEO is a relatively young 49 years old. Last year he received roughly $600,000 a year in salary. The 46 year old COO and Executive VP is similarly compensated on a scale that can be described as frugal in this day and age of excessive CEO compensation.

XRAY derives a significant bulk of its revenues from international sales, which will benefit from the declining US Dollar.

The Company has a solid earnings history, with very little surprise factor in its quarterly earnings. Over the past years, earnings per share have grown right along with the top line revenue, and margins have stayed consistent at roughly 17% to 20% on the gross operating margin, and right around 10% to 12% on the profit margin. This has translated into growing earnings per share that will reach towards the $2.00 per share level in the year ending September 2008, according to analysts who follow the company.

Cash on the balance sheet is $316 million, which is enough to meet ongoing obligations in light of the nearly $2 billion per year in top line revenues that the company has built. On the liability side of the balance sheet, a level of $483 million in longer term debt has been built up, reflecting some leverage, but a manageable level with only $0.32 in debt per $1.00 of equity.

Dentsply shares are currently trading at some of the larger negative deviations from their 50-day and 100-day moving averages. Shares have been knocked down with the overall market, but since the beginning of the year have come down by 20%. There is a very good opportunity to buy this stock at a discount here.

The stock has been a consistent performer over the last few years, with regular dividends and occasional splits. The dividend itself is relatively small $0.18 per year, which is a yield of about 0.50%, but that’s better than nothing for many investors.