Hologic Inc (NASDAQ: HOLX)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000859737
Market Cap 16.81 Bn
P/B 3.21
P/E 30.91
P/S 4.07
ROIC (Qtr) 7.34
Div Yield % 0.00
Rev 1y % (Qtr) 2.54
Total Debt (Qtr) 2.52 Bn
Debt/Equity (Qtr) 0.48

About

Hologic Inc., often recognized by its stock symbol HOLX, is a prominent player in the medical technology industry, specializing in diagnostics products, medical imaging systems, and surgical products that cater to women's health and well-being through early detection and treatment. The company's operations are divided into four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. Hologic's main business activities revolve around the development, manufacturing, and supply of premium diagnostics products, medical imaging systems,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.10B provides robust 0.44x coverage of total debt 2.52B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 2.17B provide 233.12x coverage of short-term debt 9.30M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 941.80M exceeds capital expenditure of 155.90M by 6.04x, indicating strong organic growth funding capability.
  • Operating cash flow of 1.10B provides strong 13.54x coverage of stock compensation 81.10M, indicating sustainable incentive practices.
  • Tangible assets of 4.99B provide exceptional 27.21x coverage of deferred revenue 183.30M, showing strong service capability backing.

Bear case

  • Operating cash flow of 1.10B barely covers its investment activities of (472.80M), with a coverage ratio of -2.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (472.80M) provide weak support for R&D spending of 248.50M, which is -1.90x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 2.17B provide limited coverage of acquisition spending of (321.20M), which is -6.75x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 777.60M show weak coverage of depreciation charges of 295.40M, with a 2.63 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 941.80M represents just -30.88x of debt issuance (30.50M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.89 2.75
EV to Cash from Ops. EV/CFO 15.83 39.87
EV to Debt EV to Debt 6.89 27.09
EV to EBIT EV/EBIT 22.34 32.86
EV to EBITDA EV/EBITDA 17.08 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF 18.45 0.88
EV to Market Cap EV to Market Cap 1.03 -4.26
EV to Revenue EV/Rev 4.21 252.61
Price to Book Value [P/B] P/B 3.21 6.13
Price to Earnings [P/E] P/E 30.91 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 6.81 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4.49 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 21.65 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -24.68 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.88 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -25.79 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -27.99 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) -24.14 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -14.79 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.22 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.28 2.51
Current Ratio Curr Ratio (Qtr) 4.04 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.48 0.55
Interest Cover Ratio Int Coverage (Qtr) 6.81 -117.83
Times Interest Earned Times Interest Earned (Qtr) 6.81 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.00 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) 18.84 -2,472.59
EBT Margin % EBT Margin % (Qtr) 16.08 -2,442.52
Gross Margin % Gross Margin % (Qtr) 51.50 30.06
Net Profit Margin % Net Margin % (Qtr) 13.20 -2,438.49