Hologic, Inc.
Hologic, Inc. Fundamental Analysis
Hologic, Inc. (HOLX) shows weak financial fundamentals with a PE ratio of 31.09, profit margin of 13.18%, and ROE of 11.01%. The company generates $4.1B in annual revenue with weak year-over-year growth of 1.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HOLX's fundamental strength across five key dimensions:
Efficiency Score
WeakHOLX struggles to generate sufficient returns from assets.
Valuation Score
ModerateHOLX shows balanced valuation metrics.
Growth Score
WeakHOLX faces weak or negative growth trends.
Financial Health Score
ExcellentHOLX maintains a strong and stable balance sheet.
Profitability Score
WeakHOLX struggles to sustain strong margins.
Key Financial Metrics
Is HOLX Expensive or Cheap?
P/E Ratio
HOLX trades at 31.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HOLX's PEG of -11.10 indicates potential undervaluation.
Price to Book
The market values Hologic, Inc. at 3.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.24 times EBITDA. This signals the market has high growth expectations.
How Well Does HOLX Make Money?
Net Profit Margin
For every $100 in sales, Hologic, Inc. keeps $13.18 as profit after all expenses.
Operating Margin
Core operations generate 17.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.01 in profit for every $100 of shareholder equity.
ROA
Hologic, Inc. generates $5.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hologic, Inc. generates strong operating cash flow of $1.09B, reflecting robust business health.
Free Cash Flow
Hologic, Inc. generates strong free cash flow of $994.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.45 in free cash annually.
FCF Yield
HOLX converts 5.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HOLX Stacks Against Its Sector Peers
| Metric | HOLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.09 | 29.43 | Neutral |
| ROE | 11.01% | 800.00% | Weak |
| Net Margin | 13.18% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.48 | 0.30 | Weak (High Leverage) |
| Current Ratio | 4.04 | 4.64 | Strong Liquidity |
| ROA | 5.92% | -17936.00% (disorted) | Weak |
HOLX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hologic, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.57%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-41.34%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
36.34%
Industry Style: Defensive, Growth, Innovation
High Growth