Hologic (HOLX) AI Stock Analysis

• Market Cap: $14.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.14
• Revenue Growth: 1.66%
• EPS Growth: 21.95%
• Country: US
• Employees: 7,063
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.03
• Shares Outstanding: 222,845,250
• 10 Day Avg. Volume: 1,823,798
• 30 Day Avg. Volume: 2,199,932
• PEG Ratio: -1.06
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.13
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 11.05
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $67.64
• Price Target Upside: 2.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 70 Outperform
• Price Target: $72.00 ▲(8.93%Upside)

Hologic's overall stock score of 70 reflects its strong financial health and strategic growth in its diagnostics segment. The primary concerns are related to revenue declines and geopolitical challenges in China, impacting short-term performance. The valuation is relatively high, which may limit upside potential in the near term. However, the company's low leverage and robust cash flow position provide a buffer against these challenges.

Positive Factors

Financial Stability

HOLX ended its F2Q25 with $1.6B of cash and $2.5B of debt, which positions it favorably in terms of financial stability.

Revenue Growth

Molecular diagnostics showed strong performance, driven by a leading franchise in this area, contributing positively to the company's revenue.

Valuation

With valuation at 14 times forward EPS (well below the 10-year average of 18.0 times), and a path to an acceleration in revenue and earnings growth over the next few quarters, an Outperform rating is reiterated.

Negative Factors

Breast Health Business

Breast Health continues to show pronounced weakness, creating a challenging outlook for the company despite management's efforts to address these issues.

Earnings Guidance

The company has lowered its guidance due to tariffs, China, and USAID funding headwinds, leading to a decrease in expected organizational growth and earnings per share.

Tariff Impact

Tariffs are expected to cause a significant cost headwind of $20-25 million per quarter, affecting the company's surgical and interventional breast products.

Hologic Business Overview & Revenue Model

Company Description

Hologic, Inc. (HOLX) is a leading global medical technology company that specializes in women's health. The company develops, manufactures, and supplies diagnostic products, medical imaging systems, and surgical products. Operating primarily in the segments of diagnostics, breast and skeletal health, and gynecological surgical products, Hologic is committed to improving women's health and well-being through innovative medical solutions.

How the Company Makes Money

Hologic generates revenue through the sale of its diagnostic products, medical imaging systems, and surgical products. The company's diagnostics segment includes molecular diagnostics and cytology products, which are used for early detection and treatment monitoring of various health conditions. The breast and skeletal health segment provides mammography and other imaging systems critical for the early detection of breast cancer. The gynecological surgical segment offers products for minimally invasive surgical procedures, including devices for tissue removal. In addition to product sales, Hologic earns revenue through service contracts and maintenance agreements associated with its imaging systems. Strategic partnerships with healthcare providers and institutions also play a role in expanding its market reach and enhancing its product offerings.

Hologic Financial Statement Overview

Summary

Hologic demonstrates a solid financial position with strong profitability, low leverage, and robust cash flow metrics. The balance sheet is particularly strong with low debt levels and a high equity ratio. However, revenue growth remains a concern due to slight declines.

Income Statement

Hologic's income statement indicates stability with moderate profitability. The Gross Profit Margin is strong at around 51.7% for TTM, indicating efficient production. The Net Profit Margin is moderate at 13.8%, reflecting decent profitability. However, the TTM Revenue Growth Rate is slightly negative, indicating a decline in revenue compared to the previous annual period. Despite this, the EBIT and EBITDA margins remain healthy at 17.8% and 20.7% respectively, showing controlled operating costs.

Balance Sheet

The balance sheet of Hologic is robust, with a Debt-to-Equity Ratio of 0.012, indicating low leverage and strong financial health. The Return on Equity (ROE) is solid at 12.0% for TTM, signifying effective use of equity to generate profits. The Equity Ratio stands at 54.1%, showing a strong equity position relative to total assets, enhancing financial stability.

Cash Flow

Hologic demonstrates strong cash flow management. The Free Cash Flow to Net Income Ratio is 1.87, indicating excellent cash conversion from net income. The Operating Cash Flow to Net Income Ratio is high at 2.03, suggesting strong cash generation relative to net income. However, the Free Cash Flow Growth Rate is negative, indicating a decline compared to the previous annual period, which could be a point of concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	4.03B	4.86B	5.63B	3.78B
Gross Profit	2.23B	2.07B	3.00B	3.80B	2.23B
EBITDA	1.30B	1.11B	2.11B	2.86B	1.50B
Net Income	789.50M	456.00M	1.30B	1.87B	1.12B
Balance Sheet
Total Assets	9.16B	9.14B	9.07B	8.92B	7.20B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.72B	2.34B	1.17B	701.00M
Total Debt	2.66B	2.82B	2.82B	3.03B	3.04B
Total Liabilities	4.03B	4.12B	4.20B	4.70B	4.49B
Stockholders Equity	5.13B	5.02B	4.88B	4.22B	2.71B
Cash Flow
Free Cash Flow	1.15B	901.00M	2.00B	2.17B	740.20M
Operating Cash Flow	1.29B	1.05B	2.13B	2.33B	896.60M
Investing Cash Flow	-781.00M	-152.10M	-206.30M	-1.33B	-141.60M
Financing Cash Flow	-1.11B	-483.20M	-756.00M	-529.80M	-659.90M

Hologic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOLX, the sentiment is Positive. The current price of 66.1 is above the 20-day moving average (MA) of 64.96, above the 50-day MA of 62.85, and below the 200-day MA of 67.78, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 60.09 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOLX.

Hologic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	83 Outperform	$40.08B	30.69	25.81%	0.78%	9.54%	37.23%
COO	73 Outperform	$14.64B	35.59	5.15%	―	6.88%	21.11%
WST	72 Outperform	$16.33B	35.70	17.72%	0.30%	-1.14%	-16.35%
HOLX	70 Outperform	$14.70B	27.85	11.77%	―	1.66%	21.95%
BDX	70 Outperform	$52.33B	34.84	5.97%	2.22%	5.84%	15.12%
Sector *	60 Neutral	HK$16.84B	5.17	-7.44%	2.89%	11.55%	-28.15%
BAX	56 Neutral	$14.66B	136.07	-8.96%	2.78%	-20.17%	-138.32%

Hologic Corporate Events

Hologic Refinances Loan to Enhance Financial Flexibility

On July 15, 2025, Hologic, Inc. and its subsidiaries refinanced their term loan and revolving credit facility by entering into a Refinancing Amendment to their existing Credit and Guaranty Agreement. This amendment extends the maturity date to July 15, 2030, and provides additional financial flexibility under certain covenants, impacting the company’s operational capabilities and financial strategy.

The most recent analyst rating on (HOLX) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Hologic stock, see the HOLX Stock Forecast page.