NasdaqGS:HOLX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, surgical products, and light-based aesthetic and medical treatment systems for women in the United States and internationally. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Hologic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOLX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

HOLX

-0.3%

US Medical Equipment

-0.4%

US Market


1 Year Return

43.0%

HOLX

25.5%

US Medical Equipment

18.3%

US Market

Return vs Industry: HOLX exceeded the US Medical Equipment industry which returned 23.8% over the past year.

Return vs Market: HOLX exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

HOLXIndustryMarket
7 Day1.5%-0.3%-0.4%
30 Day6.5%8.9%8.0%
90 Day10.0%8.3%9.4%
1 Year43.0%43.0%26.6%25.5%21.0%18.3%
3 Year82.4%82.4%75.2%70.6%42.1%32.7%
5 Year74.8%74.8%146.0%126.8%85.6%64.7%

Price Volatility Vs. Market

How volatile is Hologic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hologic undervalued compared to its fair value and its price relative to the market?

36.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HOLX ($67.97) is trading above our estimate of fair value ($51.03)

Significantly Below Fair Value: HOLX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HOLX is good value based on its PE Ratio (36.3x) compared to the US Medical Equipment industry average (53.9x).

PE vs Market: HOLX is poor value based on its PE Ratio (36.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HOLX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HOLX is overvalued based on its PB Ratio (7.8x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Hologic forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOLX's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: HOLX's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: HOLX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HOLX's revenue (4.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: HOLX's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOLX's Return on Equity is forecast to be high in 3 years time (29.5%)


Next Steps

Past Performance

How has Hologic performed over the past 5 years?

-13.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOLX has a large one-off loss of $276.7M impacting its June 27 2020 financial results.

Growing Profit Margin: HOLX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HOLX's earnings have declined by 13.9% per year over the past 5 years.

Accelerating Growth: HOLX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HOLX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2.5%).


Return on Equity

High ROE: Whilst HOLX's Return on Equity (21.85%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hologic's financial position?


Financial Position Analysis

Short Term Liabilities: HOLX's short term assets ($2.0B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: HOLX's short term assets ($2.0B) do not cover its long term liabilities ($3.2B).


Debt to Equity History and Analysis

Debt Level: HOLX's debt to equity ratio (147.3%) is considered high.

Reducing Debt: HOLX's debt to equity ratio has reduced from 174.7% to 147.3% over the past 5 years.

Debt Coverage: HOLX's debt is well covered by operating cash flow (21.1%).

Interest Coverage: HOLX's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Hologic current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HOLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HOLX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HOLX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOLX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HOLX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Steve MacMillan (56 yo)

6.83yrs

Tenure

US$12,374,753

Compensation

Mr. Stephen P. MacMillan, also known as Steve, has been the Chairman of the Board at Hologic Inc. since June 17, 2015 and its Chief Executive Officer and President since December 9, 2013. Mr. MacMillan ser ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD12.37M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen MacMillan
Chairman6.83yrsUS$12.37m0.67%
$ 117.0m
Karleen Oberton
Chief Financial Officer2.17yrsUS$2.46m0.013%
$ 2.3m
John Griffin
General Counsel5.67yrsUS$2.62m0.037%
$ 6.5m
Kevin Thornal
Division President of Diagnostic Solutions3.17yrsUS$2.74m0.0066%
$ 1.2m
Peter Valenti
Senior Advisor to Chief Executive Officer0.083yrUS$2.59m0.0086%
$ 1.5m
Jay Stein
Co-Founder13yrsUS$1.59mno data
Michael Watts
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Allison Bebo
Senior Vice President of Human Resources5.67yrsno data0.011%
$ 1.9m
Jan Verstreken
Regional President for Europeno datano datano data
Sanjay Prabhakaran
Regional President of Asia Pacificno datano datano data
Monica Berthelot
Chief of Staff1.75yrsno datano data
Mike Kelly
Chief Supply Chain Officer and Corporate VP of Quality Assurance & Regulatory Affairs2.75yrsno datano data

3.2yrs

Average Tenure

56yo

Average Age

Experienced Management: HOLX's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen MacMillan
Chairman6.83yrsUS$12.37m0.67%
$ 117.0m
Jay Stein
Co-Founder13yrsUS$1.59mno data
Scott Garrett
Independent Director7.42yrsUS$298.98k0.017%
$ 3.0m
Sally Crawford
Lead Independent Director3.75yrsUS$321.98k0.048%
$ 8.5m
Ludwig Hantson
Independent Director1.92yrsUS$314.74k0.0011%
$ 189.9k
Charles Dockendorff
Independent Director3.42yrsUS$299.36k0.0077%
$ 1.4m
Christiana Stamoulis
Independent Director8.92yrsUS$279.98k0.014%
$ 2.5m
Namal Nawana
Independent Director2.75yrsUS$281.48k0.0044%
$ 780.9k
Amy Wendell
Independent Director3.83yrsUS$279.98k0.0040%
$ 700.0k

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: HOLX's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HOLX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hologic, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hologic, Inc.
  • Ticker: HOLX
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$17.588b
  • Shares outstanding: 258.99m
  • Website: https://www.hologic.com

Number of Employees


Location

  • Hologic, Inc.
  • 250 Campus Drive
  • Marlborough
  • Massachusetts
  • 1752
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOLXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1990
HO1DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1990
HOLXWBAG (Wiener Boerse AG)YesCommon StockATEURMar 1990
0J5QLSE (London Stock Exchange)YesCommon StockGBUSDMar 1990
HO1ETLX (Eurotlx)YesCommon StockITEURMar 1990
HOLX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1990
H1OL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, surgical products, and light-based aesthetic and medical treatment systems for women in the United States a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:41
End of Day Share Price2020/10/23 00:00
Earnings2020/06/27
Annual Earnings2019/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.