Hologic (HOLX) AI Stock Analysis

• Market Cap: $14.34B
• Dividend Yield: N/A
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.19
• Revenue Growth: 1.66%
• EPS Growth: 21.95%
• Country: US
• Employees: 7,063
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.03
• Shares Outstanding: 222,845,250
• 10 Day Avg. Volume: 5,006,138
• 30 Day Avg. Volume: 4,034,116
• PEG Ratio: -1.04
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.84
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: $66.45
• Price Target Upside: 2.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: $70.00 ▲(8.41%Upside)

Hologic's solid financial performance and strategic initiatives are offset by challenges in revenue growth and external geopolitical factors. The technical indicators suggest caution due to mixed signals, while valuation appears high. Overall, the company's stable earnings guidance and strong balance sheet provide a balanced outlook.

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

HOLX expects growth to improve as it moves through FY25 and expects to end the year near its mid-single digit target.

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.

Geopolitical and Tariff Challenges

HOLX lowered its FY25 EPS guide during the F2Q call to reflect possible tariff and geopolitical tensions.

Tariff Costs

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 solid financial health with a strong balance sheet and effective cash flow management. The company has low leverage and maintains strong margins. However, there are concerns with revenue growth, which has shown a slight decline.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.03B	4.03B	4.03B	4.86B	5.63B	3.78B
	Gross Profit
2.08B	2.23B	2.07B	3.00B	3.80B	2.23B
	EBIT
716.80M	970.20M	668.40M	1.64B	2.48B	1.10B
	EBITDA
1.02B	1.30B	1.11B	2.11B	2.86B	1.50B
	Net Income Common Stockholders
556.70M	789.50M	456.00M	1.30B	1.87B	1.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.62B	2.33B	2.72B	2.34B	1.17B	701.00M
	Total Assets
8.55B	9.16B	9.14B	9.07B	8.92B	7.20B
	Total Debt
2.53B	2.66B	2.82B	2.82B	3.03B	3.04B
	Net Debt
1.10B	497.80M	95.70M	483.90M	1.85B	2.34B
	Total Liabilities
3.93B	4.03B	4.12B	4.20B	4.70B	4.49B
	Stockholders Equity
4.62B	5.13B	5.02B	4.88B	4.22B	2.71B
Cash Flow		Free Cash Flow
1.04B	1.15B	901.00M	2.00B	2.17B	740.20M
	Operating Cash Flow
1.13B	1.29B	1.05B	2.13B	2.33B	896.60M
	Investing Cash Flow
-984.60M	-781.00M	-152.10M	-206.30M	-1.33B	-141.60M
	Financing Cash Flow
-899.30M	-1.11B	-483.20M	-756.00M	-529.80M	-659.90M

Hologic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 64.57 is above the 20-day moving average (MA) of 59.54, above the 50-day MA of 58.66, and below the 200-day MA of 70.28, indicating a neutral trend. The MACD of 1.76 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 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	85 Outperform	$36.98B	28.32	25.81%	0.84%	9.54%	37.23%
WST	72 Outperform	$16.14B	35.28	17.42%	0.37%	-1.14%	-16.35%
HOLX	70 Outperform	$14.34B	27.16	11.77%	―	1.66%	21.95%
COO	69 Neutral	$14.43B	34.91	5.15%	―	6.88%	21.11%
BDX	68 Neutral	$49.71B	33.10	5.97%	2.29%	5.84%	15.12%
BAX	60 Neutral	$15.53B	136.07	-8.96%	2.64%	-20.17%	-138.32%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%

Hologic Corporate Events

Hologic Expands Board with New Director Appointment

On April 4, 2025, Hologic, Inc. announced the election of Wayde McMillan to its Board of Directors, expanding the board from eight to nine members. Mr. McMillan, who has extensive experience in financial leadership roles within the med-tech industry, will also serve on the company’s Audit and Finance Committee. This appointment is expected to enhance the board’s financial expertise and support Hologic’s strategic focus on women’s health.