📊 HOLX Key Takeaways
Is Hologic Inc. (HOLX) a Good Investment?
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.
Hologic exhibits solid profitability and cash generation with strong gross/operating margins and a healthy free cash flow margin supported by low capex and ample liquidity. However, top-line growth is flat and EPS declined materially, while interest coverage is relatively thin, suggesting limited upside without a clear growth reacceleration. Maintain a neutral stance pending evidence of sustained organic growth and improved coverage.
Why Buy Hologic Inc. Stock? 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
- Strong liquidity (current 4.0x, quick 3.3x) and $2.17B cash
- Healthy margins and FCF (56% gross, 22.6% operating, 20.5% FCF margin)
- Moderate leverage (0.48x D/E) and low net debt
HOLX Stock Risks: Hologic Inc. Investment Risks
- 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
- Flat revenue and -25% YoY EPS trend pressure
- Low returns on capital (ROE 3.4%, ROA 2.0%)
- Interest coverage only 2.7x heightens rate and earnings sensitivity
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
- Organic revenue growth (YoY)
- Interest coverage (EBIT/interest) and operating margin trend
Hologic Inc. (HOLX) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
HOLX vs Market Sector: How Hologic Inc. Compares
How Hologic Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hologic Inc. Stock Overvalued? HOLX Valuation Analysis 2026
Based on fundamental analysis, Hologic Inc. has mixed fundamental signals relative to the Market 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.
Hologic Inc. Balance Sheet: HOLX Debt, Cash & Liquidity
HOLX Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
HOLX Quarterly Earnings & 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.
Hologic Inc. Dividends, Buybacks & Capital Allocation
HOLX SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 69% combined 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. ChatGPT: Strong liquidity (current 4.0x, quick 3.3x) and $2.17B cash. Healthy margins and FCF (56% gross, 22.6% operating, 20.5% FCF margin).
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. ChatGPT: Flat revenue and -25% YoY EPS trend pressure. Low returns on capital (ROE 3.4%, ROA 2.0%).
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 69% 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 Market stocks?
Vs Default sector averages: Net margin 17.1% (avg: 12%), ROE 3.4% (avg: 15%), current ratio 4.04 (avg: 1.8).