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Hologic Inc HOLX

Morningstar Rating
$74.12 −1.24 (1.65%)
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Company Report

Hologic Earnings: Adoption of New Assays and Incorporation of AI Bode Well for Hologic

Narrow-moat Hologic’s fiscal first-quarter reflected the firm’s navigation of the tail end of COVID-19 disruption, and considering the underlying strength of the firm’s non-COVID-19 business, management raised its outlook. However, we’re leaving our $70 fair value estimate unchanged given our projections for full-year 2024 remain bounded by this new guidance. Quarterly consolidated revenue fell roughly 6% year over year, driven by waning COVID-19 diagnostic demand. Excluding COVID-19 sales, quarterly diagnostics revenue fell 1%, which was substantially softer than the double-digit growth seen in the previous two quarters. Nevertheless, breast health and surgical posted solid 12% and 5% growth, respectively, in the quarter to more than offset diagnostics.

Price vs Fair Value

HOLX is trading at a 6% premium.
Price
$74.12
Fair Value
$25.00
Uncertainty
Medium
1-Star Price
$68.60
5-Star Price
$75.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Hologic was first to market with an FDA-approved 3D mammography platform in the U.S., giving it a considerable head start in its installed base against GE and Siemens.

Bears

Shifts in screening guidelines and disruptive technologies can have a significant effect on Hologic's business as we saw with the advent of HPV diagnostics on traditional Pap tests.

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News

Trading Information

Previous Close Price
$75.36
Day Range
$73.8675.36
52-Week Range
$64.0287.88
Bid/Ask
$72.01 / $79.00
Market Cap
$17.40 Bil
Volume/Avg
1.9 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
19.21
Price/Sales
4.60
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
6.04%

Company Profile

Hologic manufactures proprietary products for the healthcare needs of women. The company operates in five segments: diagnostics (60% of total sales, boosted by pandemic), breast health (14% of sales, suppressed by pandemic), surgical (11%), and skeletal health (1%). While the company traditionally focused on breast health, the acquisition of Gen-Probe put greater emphasis on commercial diagnostics. The United States accounts for the largest portion of the firm's revenue (69%), followed by Europe (20%), Asia (8%), and other international markets (3%). Hologic is headquartered in Bedford, Massachusetts.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Core
Total Number of Employees
6,990

Competitors

Valuation

Metric
HOLX
BDX
QGEN
Price/Earnings (Normalized)
19.2120.0620.44
Price/Book Value
3.742.732.51
Price/Sales
4.603.564.92
Price/Cash Flow
16.3121.2814.95
Price/Earnings
HOLX
BDX
QGEN

Financial Strength

Metric
HOLX
BDX
QGEN
Quick Ratio
2.770.462.56
Current Ratio
3.471.083.74
Interest Coverage
6.004.177.10
Quick Ratio
HOLX
BDX
QGEN

Profitability

Metric
HOLX
BDX
QGEN
Return on Assets (Normalized)
10.63%3.40%7.53%
Return on Equity (Normalized)
19.32%7.05%13.35%
Return on Invested Capital (Normalized)
12.28%5.04%8.41%
Return on Assets
HOLX
BDX
QGEN
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