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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.2%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, HOLOGIC INC (HOLX) receives a "Hold" rating with a composite score of 52.5/100, ranked #236 out of 4446 stocks. Key factor scores: Quality 50/100, Value 43/100, Momentum 58/100. This is quantitative analysis only — not investment advice.
HOLOGIC INC (HOLX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does HOLOGIC INC Do?
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. HOLOGIC INC (HOLX) is classified as a large-cap stock in the Healthcare sector, specifically within the Medical Equipment industry. The company is led by CEO Stephen P. MacMillan and employs approximately 6,940 people, headquartered in Wilmington, Massachusetts. With a market capitalization of $16.9B, HOLX is one of the prominent companies in the Healthcare sector.
HOLOGIC INC (HOLX) Stock Rating — Hold (April 2026)
As of April 2026, HOLOGIC INC receives a Hold rating with a composite score of 52.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.HOLX ranks #236 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, HOLOGIC INC ranks #6 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
HOLX Stock Price and 52-Week Range
HOLOGIC INC (HOLX) currently trades at $75.15. The stock gained $0.10 (0.1%) in the most recent trading session. The 52-week high for HOLX is $75.75, which means the stock is currently trading -0.8% from its annual peak. The 52-week low is $51.90, putting the stock 44.8% above its annual trough. Recent trading volume was 3.8M shares, reflecting moderate market activity.
Is HOLX Overvalued or Undervalued? — Valuation Analysis
HOLOGIC INC (HOLX) carries a value factor score of 43/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.68x, compared to the Healthcare sector average of 23.63x — a premium of 34%. The price-to-book ratio stands at 3.24x, versus the sector average of 2.75x. The price-to-sales ratio is 4.11x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, HOLX trades at 24.60x EV/EBITDA, versus 6.34x for the sector. The EV/EBIT multiple is 23.99x.
Overall, HOLX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
HOLOGIC INC Profitability — ROE, Margins, and Quality Score
HOLOGIC INC (HOLX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.2%, compared to the Healthcare sector average of -43.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.8% versus the sector average of -33.1%.
On a margin basis, HOLOGIC INC reports gross margins of 51.4%, compared to 71.5% for the sector. The operating margin is 17.4% (sector: -66.1%). Net profit margin stands at 12.9%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 3.6% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
HOLX Debt, Balance Sheet, and Financial Health
HOLOGIC INC has a debt-to-equity ratio of 48.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.04x, indicating strong short-term liquidity. Total debt on the balance sheet is $2.51B. Cash and equivalents stand at $2.17B.
HOLX has a beta of 0.26, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for HOLOGIC INC is 91/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
HOLOGIC INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, HOLOGIC INC reported revenue of $4.12B and earnings per share (EPS) of $0.80. Net income for the quarter was $536M. Gross margin was 51.4%. Operating income came in at $722M.
In Q1 2026, HOLOGIC INC reported revenue of $1.05B and earnings per share (EPS) of $0.80. Net income for the quarter was $179M. Gross margin was 56.0%. Revenue grew 0.0% year-over-year compared to Q1 2025. Operating income came in at $237M.
In Q1 2025, HOLOGIC INC reported revenue of $1.05B and earnings per share (EPS) of $0.80. Net income for the quarter was $179M. Gross margin was 56.0%. Operating income came in at $237M.
In FY 2025, HOLOGIC INC reported revenue of $4.10B and earnings per share (EPS) of $2.50. Net income for the quarter was $566M. Gross margin was 51.6%. Revenue grew 1.7% year-over-year compared to FY 2024. Operating income came in at $714M.
Over the past 8 quarters, HOLOGIC INC has demonstrated a growth trajectory, with revenue expanding from $1.01B to $4.12B. Investors analyzing HOLX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
HOLX Dividend Yield and Income Analysis
HOLOGIC INC (HOLX) does not currently pay a dividend. This is common among growth-oriented companies in the Medical Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
HOLX Momentum and Technical Analysis Profile
HOLOGIC INC (HOLX) has a momentum factor score of 58/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 48/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 27/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
HOLX vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing HOLX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full HOLX vs S&P 500 (SPY) comparison to assess how HOLOGIC INC stacks up against the broader market across all factor dimensions.
HOLX Next Earnings Date
No upcoming earnings date has been announced for HOLOGIC INC (HOLX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy HOLX? — Investment Thesis Summary
HOLOGIC INC presents a balanced picture with arguments on both sides. Low volatility (stability score 91/100) reduces downside risk.
In summary, HOLOGIC INC (HOLX) earns a Hold rating with a composite score of 52.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on HOLX stock.
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Institutional Research Dossier
HOLOGIC INC (HOLX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Buy rating on Hologic (HOLX), driven by its leading positions in women's health diagnostics and breast health, coupled with a stable financial profile. While the valuation appears stretched relative to the sector, Hologic's specialized focus and consistent profitability, particularly in diagnostics, justify a premium. The key takeaway is that Hologic's long-term growth prospects are tied to its ability to innovate and expand its product offerings within its core markets, while effectively managing its debt load.
Hologic's focus on women's health provides a degree of resilience, as these healthcare needs are generally less discretionary. The company's strong market share in key areas like mammography and molecular diagnostics creates a solid foundation for future growth. However, investors should closely monitor the company's ability to maintain its competitive edge in the face of evolving technologies and increasing competition, as well as its ability to generate consistent free cash flow to service its debt.
Business Strategy & Overview
Hologic operates with a focused strategy centered on women's health, encompassing diagnostics, breast health, GYN surgical, and skeletal health. The company generates revenue through the sale of diagnostic assays, medical imaging systems, and surgical devices. A significant portion of their revenue comes from recurring sales of diagnostic tests and replacement parts for their installed base of medical equipment, providing a degree of revenue stability. Hologic's strategic positioning emphasizes innovation and market leadership in its core areas, particularly in molecular diagnostics and breast imaging.
The company's product pipeline is crucial to its long-term growth. Hologic invests in research and development to introduce new diagnostic tests, improve the performance of its imaging systems, and develop less invasive surgical procedures. Recent examples include the development of new assays for infectious diseases and enhancements to its 3D mammography technology. These innovations are essential for maintaining a competitive edge and driving revenue growth in a rapidly evolving healthcare market.
Hologic's industry context is characterized by increasing demand for early detection and personalized medicine. The company is well-positioned to capitalize on these trends with its comprehensive portfolio of diagnostic and imaging solutions. However, the industry is also highly competitive, with established players like Siemens Healthineers, GE Healthcare, and Roche Diagnostics vying for market share. Hologic's ability to differentiate itself through innovation and superior product performance is critical to its success.
The company's sales strategy involves a combination of direct sales and service forces, as well as independent distributors and sales representatives. This multi-channel approach allows Hologic to reach a broad customer base across different geographies and healthcare settings. The company also focuses on building strong relationships with key opinion leaders and healthcare providers to promote the adoption of its products and technologies.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.6%
Sector: 10.6%
-66% VS SCTR
Economic Moat Analysis
Hologic possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intellectual property, including patents and proprietary technologies related to its diagnostic assays and imaging systems, provides a degree of protection from competition. These intangible assets allow Hologic to command premium pricing and maintain market share in key areas like molecular diagnostics and breast health.
Switching costs also contribute to Hologic's moat. Once a healthcare provider has invested in Hologic's equipment and trained its staff on its systems, there is a disincentive to switch to a competitor's products. This is particularly true for complex imaging systems like mammography machines, where the cost of retraining and the potential disruption to workflow can be significant. The company's installed base of equipment creates a recurring revenue stream and strengthens its customer relationships.
However, Hologic's moat is not particularly wide. The healthcare industry is characterized by rapid technological innovation, and competitors are constantly developing new and improved products. Hologic must continually invest in research and development to maintain its competitive edge and prevent its products from becoming obsolete. The company's reliance on a relatively narrow range of products also makes it vulnerable to competition from companies with broader portfolios.
Furthermore, the regulatory environment in the healthcare industry can create barriers to entry, but these barriers are not insurmountable. Competitors can obtain regulatory approval for new products and challenge Hologic's patents. The company's ability to defend its intellectual property and navigate the regulatory landscape is crucial to maintaining its moat.
While Hologic's brand reputation in women's health is a positive factor, it's not strong enough to be considered a primary driver of a wide moat. The company's moat is more dependent on its technological advantages and the stickiness of its installed base. Therefore, a narrow moat rating is appropriate, reflecting the company's competitive advantages but also acknowledging the challenges it faces in a dynamic and competitive industry.
Financial Health & Profitability
Hologic's financial health presents a mixed picture. While the company exhibits strong profitability metrics, its revenue growth has been relatively modest, and its balance sheet carries a significant amount of debt. The company's gross margin of 51.4% is lower than the sector average of 71.9%, indicating potential pricing pressure or higher cost of goods sold. However, its operating margin of 17.4% and net margin of 12.9% are significantly better than the sector averages of -65.2% and -54.1%, respectively, demonstrating efficient cost management and profitability within its core business segments.
Looking at the quarterly financial history, Hologic has demonstrated consistent revenue generation around the $1 billion mark, with fluctuations in net income driven by various factors, including one-time charges and changes in operating expenses. The Q2 FY2025 net loss of $17.4 million highlights the potential for volatility in the company's earnings. The company's free cash flow generation has been inconsistent, with a reported $77.39 million in Q1 FY2025 and $694.77 million for FY2024, indicating variability in working capital management and capital expenditure requirements.
Hologic's balance sheet shows a substantial amount of cash ($2.17 billion) and a significant debt load ($2.51 billion), resulting in a debt-to-equity ratio of 48.00, which is higher than the sector average of 30.00. While the company's current ratio of 4.04 indicates strong liquidity and the ability to meet its short-term obligations, the high debt level raises concerns about financial leverage and potential interest expense burden. The company's ability to generate consistent free cash flow is crucial for servicing its debt and maintaining financial flexibility.
The company's return on equity (ROE) of 10.2% is positive but relatively modest compared to its historical performance and the potential for higher returns given its market position. The sector average ROE of -42.5% is skewed by companies with significant losses, making it a less relevant benchmark. Hologic's ability to improve its ROE through efficient asset utilization and profitability improvements is a key factor in its long-term financial health.
Overall, Hologic's financial health is stable but requires careful monitoring. The company's strong profitability and liquidity are positive factors, but its high debt level and inconsistent free cash flow generation warrant attention. The company's ability to manage its debt, improve its margins, and generate consistent free cash flow will be critical to its long-term financial success.
Valuation Assessment
Hologic's valuation appears stretched based on several key metrics. The company's P/E ratio of 94.3x is significantly higher than the healthcare sector average of 24.3x, suggesting that the stock is trading at a premium to its earnings. Similarly, its EV/EBITDA ratio of 20.4x is considerably higher than the sector average of 6.4x, indicating that the company is expensive relative to its enterprise value and operating profitability. These high multiples reflect investor expectations for future growth and the company's perceived quality, but they also create a risk of valuation compression if the company fails to meet those expectations.
The company's free cash flow yield, based on a market cap of $16.83 billion and free cash flow of $77.39 million, is very low, indicating that investors are not receiving a significant return on their investment in terms of cash flow generation. This low yield further supports the argument that the stock is overvalued. However, it's important to note that the TTM free cash flow figure may not be representative of the company's long-term cash flow potential, as it can be influenced by short-term factors such as changes in working capital.
Comparing Hologic's valuation to its historical multiples is challenging due to the limited historical data provided. However, the current multiples are likely higher than the company's historical averages, reflecting the overall increase in market valuations and investor optimism about the company's prospects. The company's valuation is also influenced by its growth rate, which, at 3.6%, is lower than the sector average of 10.7%. This discrepancy between growth and valuation raises concerns about whether the stock is justified in trading at such a high premium.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock, but without detailed projections of future revenue growth, margins, and capital expenditures, it is difficult to provide a precise valuation. However, based on the available information, it appears that Hologic's stock is currently overvalued, and investors should exercise caution before investing in the stock at these levels. The Buy rating is predicated on the expectation that the company can deliver on its growth potential and justify its premium valuation through strong execution and innovation.
The high valuation also implies that the market is pricing in a significant degree of success for Hologic's future product launches and strategic initiatives. Any setbacks or disappointments in these areas could lead to a sharp correction in the stock price. Therefore, investors should closely monitor the company's progress and be prepared to adjust their positions accordingly.
Risk & Uncertainty
Hologic faces several specific risks that could impact its business and financial performance. One of the most significant risks is competition from other medical device and diagnostics companies. The healthcare industry is highly competitive, and Hologic faces competition from established players with greater resources and broader product portfolios. The company's ability to maintain its market share and pricing power in the face of increasing competition is crucial to its success.
Another risk is regulatory uncertainty. The medical device and diagnostics industry is heavily regulated, and changes in regulations could have a material impact on Hologic's business. For example, changes in reimbursement policies or regulatory approval processes could delay or prevent the launch of new products, reduce the demand for existing products, or increase the company's compliance costs. The company's ability to navigate the regulatory landscape and adapt to changing regulations is essential for its long-term growth.
Hologic also faces risks related to its reliance on a relatively narrow range of products. The company's revenue is concentrated in a few key areas, such as mammography and molecular diagnostics. A decline in demand for these products or the emergence of competing technologies could have a significant impact on the company's financial performance. The company's ability to diversify its product portfolio and expand into new markets is important for mitigating this risk.
The company's high debt level also poses a risk. Hologic has a significant amount of debt on its balance sheet, which increases its financial leverage and exposes it to interest rate risk. Rising interest rates could increase the company's interest expense and reduce its profitability. The company's ability to generate sufficient free cash flow to service its debt is crucial for maintaining its financial stability.
Finally, Hologic faces risks related to product liability. The company's products are used in medical procedures, and there is a risk that patients could be injured as a result of using these products. Product liability claims could result in significant legal expenses and damage to the company's reputation. The company's ability to manage its product liability risk is important for protecting its financial assets and maintaining its brand image.
Bulls Say / Bears Say
The Bull Case
BULL VIEWHologic's focus on women's health provides a resilient market with consistent demand, making it a stable investment in the healthcare sector.
BULL VIEWThe company's strong market position in diagnostics and breast health, coupled with ongoing innovation, will drive long-term revenue growth and profitability.
BULL VIEWHologic's efficient cost management and superior operating margins compared to the sector justify its premium valuation and potential for future appreciation.
The Bear Case
BEAR VIEWHologic's high P/E and EV/EBITDA ratios indicate significant overvaluation, making the stock vulnerable to a correction if growth expectations are not met.
BEAR VIEWThe company's high debt level and inconsistent free cash flow generation raise concerns about its financial leverage and ability to service its debt obligations.
BEAR VIEWIncreasing competition and regulatory uncertainty in the medical device industry could erode Hologic's market share and negatively impact its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score HOLX and 4,400+ other equities.
HOLOGIC INC exhibits a 122% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.8%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
51.4%
Sector: 71.5%
Operating Margin
Core business profitability
17.4%
Sector: -66.1%
Net Margin
Bottom-line profitability
12.9%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
