📊 HOLX Key Takeaways
Is HOLX a Good Investment? Thesis Analysis
Hologic demonstrates exceptional operational profitability with 56% gross margins and generates strong free cash flow ($215.2M, 20.5% FCF margin), but faces concerning growth stagnation (0% YoY revenue and net income growth) with deteriorating shareholder returns (3.4% ROE, 25% EPS decline). The company's financial health is solid with excellent liquidity and moderate leverage, but capital inefficiency and lack of growth trajectory limit investment appeal.
Why Buy HOLX? Key Strengths
- Exceptional profitability margins (56% gross, 22.6% operating, 17.1% net) indicate strong competitive positioning and pricing power
- Outstanding free cash flow generation ($215.2M with 20.5% FCF margin) provides financial flexibility and capital allocation optionality
- Strong balance sheet fundamentals with excellent liquidity (4.04x current ratio), $2.2B cash, and moderate leverage (0.48x debt/equity)
- High-quality earnings with cash conversion - operating cash flow of $229.9M nearly matches net income of $179.1M
HOLX Investment Risks to Consider
- Complete revenue growth stagnation (0% YoY) signals competitive headwinds or market saturation in core X-ray diagnostic business
- Poor capital efficiency reflected in 3.4% ROE and 2.0% ROA despite high margins indicates misallocation of capital or asset impairment concerns
- EPS decline of 25% despite flat net income suggests shareholder dilution and diminishing per-share value creation
- Interest coverage ratio of 2.7x provides limited cushion; financial distress risk increases if operational performance deteriorates further
- Minimal capital expenditure ($14.7M, 1.5% of revenue) raises concerns about R&D investment and future competitive positioning in medical devices sector
Key Metrics to Watch
- Revenue growth trajectory - must demonstrate positive YoY growth to signal market recovery
- Return on Equity - current 3.4% is severely depressed; watch for improvement indicating better capital allocation
- Operating cash flow sustainability - ensure FCF generation continues as proxy for business health
- Insider Form 4 activity trends - monitor for unusual selling patterns that could signal management concerns
HOLX Financial Metrics
💡 AI Analyst Insight
The 20.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.04x current ratio provides a solid financial cushion.
HOLX Profitability Ratios
HOLX vs Default Sector
How HOLOGIC INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HOLX Overvalued or Undervalued?
Based on fundamental analysis, HOLOGIC INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HOLX Balance Sheet & Liquidity
HOLX 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HOLOGIC INC's revenue has declined by 27% over the 5-year period, indicating business contraction. The most recent EPS of $1.83 reflects profitable operations.
HOLX Growth Metrics (YoY)
HOLX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | -$17.4M | $0.79 |
| Q3 2025 | $1.0B | -$17.4M | $0.82 |
| Q2 2025 | $1.0B | -$17.4M | $-0.08 |
| Q1 2025 | $1.0B | $169.9M | $0.87 |
| Q3 2024 | $984.4M | -$40.5M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HOLX Capital Allocation
HOLX SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HOLOGIC INC (CIK: 0000859737)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HOLX
What is the AI rating for HOLX?
HOLOGIC INC (HOLX) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HOLX's key strengths?
Claude: Exceptional profitability margins (56% gross, 22.6% operating, 17.1% net) indicate strong competitive positioning and pricing power. Outstanding free cash flow generation ($215.2M with 20.5% FCF margin) provides financial flexibility and capital allocation optionality.
What are the risks of investing in HOLX?
Claude: Complete revenue growth stagnation (0% YoY) signals competitive headwinds or market saturation in core X-ray diagnostic business. Poor capital efficiency reflected in 3.4% ROE and 2.0% ROA despite high margins indicates misallocation of capital or asset impairment concerns.
What is HOLX's revenue and growth?
HOLOGIC INC reported revenue of $1.0B.
Does HOLX pay dividends?
HOLOGIC INC does not currently pay dividends.
Where can I find HOLX SEC filings?
Official SEC filings for HOLOGIC INC (CIK: 0000859737) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HOLX's EPS?
HOLOGIC INC has a diluted EPS of $0.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HOLX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HOLOGIC INC has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HOLX stock overvalued or undervalued?
Valuation metrics for HOLX: ROE of 3.4% (sector avg: 15%), net margin of 17.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HOLX stock in 2026?
Our dual AI analysis gives HOLOGIC INC a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HOLX's free cash flow?
HOLOGIC INC's operating cash flow is $229.9M, with capital expenditures of $14.7M. FCF margin is 20.5%.
How does HOLX compare to other Default stocks?
Vs Default sector averages: Net margin 17.1% (avg: 12%), ROE 3.4% (avg: 15%), current ratio 4.04 (avg: 1.8).