Hologic (HOLX) AI Stock Analysis

• Market Cap: $14.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.09
• Revenue Growth: 1.28%
• EPS Growth: -17.73%
• Country: US
• Employees: 7,063
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.08
• Shares Outstanding: 222,419,280
• 10 Day Avg. Volume: 3,097,282
• 30 Day Avg. Volume: 2,119,185
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 15.19
• 1Y Price Target: $75.22
• Price Target Upside: 13.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: $72.00 ▲(8.43% Upside)

Hologic's overall stock score reflects a stable financial position with strong revenue growth, though profitability and cash flow growth need improvement. The positive sentiment from the earnings call and strategic initiatives provide a favorable outlook. However, the high valuation and mixed technical indicators suggest caution.

Positive Factors

Revenue Growth

Hologic's strong revenue growth indicates robust demand for its products, particularly in diagnostics and surgical segments, supporting long-term expansion.

Product Innovation

Innovations like Genius AI Detection PRO enhance Hologic's competitive edge in medical imaging, driving future growth and market leadership.

Strategic Partnerships

Partnerships with healthcare providers and research institutions expand Hologic's market presence and product adoption, supporting sustainable revenue streams.

Negative Factors

Profitability Decline

Declining profitability margins may affect Hologic's ability to reinvest in growth and innovation, potentially impacting long-term financial health.

Geopolitical Challenges

Geopolitical issues in key markets like China and Africa could hinder Hologic's revenue growth and market expansion, posing long-term strategic risks.

Product Discontinuation

The strategic decision to discontinue certain products may lead to short-term revenue loss, impacting overall financial performance and market position.

Hologic Business Overview & Revenue Model

Company Description

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment in the United States, Europe, the Asia-Pacific, and internationally. It operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. The company provides Aptima molecular diagnostic assays to detect the infectious microorganisms; Aptima viral load tests for HIV, Hepatitis C, and Hepatitis B; Aptima SARS-CoV-2 and Panther Fusion SARS-CoV-2 assays for the detection of SARS-CoV-2; ThinPrep System for use in cytology applications; Rapid Fetal Fibronectin Test that assists physicians in assessing the risk of pre-term birth; and various diagnostic tests for the detection of Group B Streptococcus. It also offers breast imaging and analytics, such as 2D and 3D digital mammography systems and reading workstations, minimally invasive breast biopsy guidance systems and devices, breast biopsy site markers and localization, specimen radiology, and ultrasound and connectivity solutions; and breast conserving surgery products. In addition, the company provides NovaSure Endometrial Ablation System for the treatment of abnormal uterine bleeding; MyoSure Hysteroscopic Tissue Removal System for the removal of fibroids, polyps, and other pathology within the uterus; and Fluent Fluid Management System that provides liquid distention during diagnostic and operative hysteroscopic procedures. Further, it offers Horizon DXA, a dual energy X-ray system; and the Fluoroscan Insight FD mini C-arm to perform minimally invasive orthopedic surgical procedures. The company sells its products through direct sales and service forces, and independent distributors and sales representatives. Hologic, Inc. was incorporated in 1985 and is headquartered in Marlborough, Massachusetts.

How the Company Makes Money

Hologic generates revenue through multiple key streams, primarily from the sale of its medical devices and diagnostic products. The company earns substantial income from its breast health segment, which includes the sale of mammography systems, imaging systems, and related software. Additionally, the diagnostics segment contributes significantly to revenue through molecular testing products and assays for various diseases, including HPV and COVID-19. Hologic also benefits from recurring revenue through service contracts and consumables associated with its products. Strategic partnerships with healthcare providers, laboratories, and research institutions enhance its market reach and product offerings, further contributing to its earnings. Moreover, ongoing investments in R&D enable Hologic to innovate and expand its product portfolio, thus driving future revenue growth.

Hologic Financial Statement Overview

Summary

Hologic's financial performance shows resilience with strong revenue growth in the TTM period, but profitability margins have declined. The balance sheet remains stable with manageable leverage, though profitability metrics like ROE have weakened. Cash flow generation is solid, but declining free cash flow growth could be a concern if it continues. Overall, the company is navigating challenges with a stable financial position, but needs to focus on improving profitability and cash flow growth.

Income Statement

Hologic's income statement shows a mixed performance. The TTM data indicates a strong gross profit margin of 51.8%, but this is a decline from previous years. The net profit margin has also decreased to 13.8% from 19.6% in the last annual report. Revenue growth is positive at 30.8% TTM, indicating a recovery from previous declines. However, EBIT and EBITDA margins have decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.52, which is stable compared to the previous year. Return on equity has decreased to 11.5% TTM from 15.4% annually, indicating reduced profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is down by 3.11% TTM. The operating cash flow to net income ratio is healthy at 1.11, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, suggesting less cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	4.03B	4.03B	4.86B	5.63B	3.78B
Gross Profit	2.09B	2.23B	2.07B	3.00B	3.80B	2.23B
EBITDA	1.01B	1.30B	1.11B	2.11B	2.86B	1.50B
Net Income	557.10M	789.50M	456.00M	1.30B	1.87B	1.12B
Balance Sheet
Total Assets	8.81B	9.16B	9.14B	9.07B	8.92B	7.20B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.33B	2.72B	2.34B	1.17B	701.00M
Total Debt	2.52B	2.66B	2.90B	2.92B	3.14B	3.15B
Total Liabilities	3.96B	4.03B	4.12B	4.20B	4.70B	4.49B
Stockholders Equity	4.84B	5.13B	5.02B	4.88B	4.22B	2.71B
Cash Flow
Free Cash Flow	978.20M	1.15B	901.00M	2.00B	2.17B	740.20M
Operating Cash Flow	1.07B	1.29B	1.05B	2.13B	2.33B	896.60M
Investing Cash Flow	-946.30M	-781.00M	-152.10M	-206.30M	-1.33B	-141.60M
Financing Cash Flow	-835.60M	-1.11B	-483.20M	-756.00M	-529.80M	-659.90M

Hologic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 66.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 66.4 is above the 20-day moving average (MA) of 66.37, below the 50-day MA of 66.60, and above the 200-day MA of 64.97, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HOLX.

Hologic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISRG	78 Outperform	159.16B	61.96	―	―	20.77%	23.16%
WST	78 Outperform	18.69B	37.57	16.65%	0.32%	2.88%	-5.50%
RMD	77 Outperform	40.15B	28.99	23.47%	0.80%	9.84%	37.48%
BDX	70 Outperform	53.33B	33.54	6.30%	2.24%	7.86%	14.24%
HOLX	69 Neutral	$14.77B	27.55	11.38%	―	1.28%	-17.73%
BAX	54 Neutral	11.59B	-84.97	-9.32%	3.01%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%