Hologic Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>HOL</div>
HOLX -- USA Stock  

USD 72.09  0.27  0.37%

As many of us are excited about healthcare space, it is fair to break down Hologic. We will evaluate why we are still confident in anticipation of a recovery. Is the entity valuation justified? Here we go over the stock perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Is Hologic growth trend slowing down?
The company currently holds 3.17 B in liabilities with Debt to Equity (D/E) ratio of 1.17, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hologic has an asset utilization ratio of 2052.71 percent. This suggests that the company is making $20.53 for each dollar of assets. An increasing asset utilization means that Hologic is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Hologic using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hologic based exclusively on its fundamental and basic technical indicators. By analyzing Hologic's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hologic's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hologic. We calculate exposure to Hologic's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hologic's related companies.

Hologic Investment Alerts

Hologic investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Hologic performance across your portfolios.Please check all investment alerts for Hologic

Hologic Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Hologic value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hologic competition to find correlations between indicators driving the intrinsic value of Hologic.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Hologic, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Benjamin Cohn of 8396 shares of Hologic subject to Rule 16b-3

Legal trades by Hologic insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Hologic insider trading alert for exercise of non-qualified stock option (right to buy) by Benjamin Cohn, Principal Accounting Officer, on 8th of February 2021. This event was filed by Hologic Inc with SEC on 2021-02-08. Statement of changes in beneficial ownership - SEC Form 4. Benjamin Cohn currently serves as principal chief accounting officer of Hologic [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Hologic Investor Appetite?

Hologic reported the previous year's revenue of 3.78 B. Net Income was 1.12 B with profit before overhead, payroll, taxes, and interest of 2.51 B.

Margins Breakdown

Hologic profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Hologic itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Hologic profit margins.
Operating Margin16.6
EBITDA Margin0.65
Gross Margin0.57
Profit Margin0.27


Hologic Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Moreover, Hologic Net Income Per Employee is fairly stable at the moment.

Will Hologic price slide impact its balance sheet?

Expected Short fall just dropped to -1.88, may suggest upcoming price decrease. Hologic currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.32. However, we do advice investors to further question Hologic expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Hologic

While some companies under the medical instruments & supplies industry are still a bit expensive, Hologic may offer a potential longer-term growth to investors. To summarize, as of the 26th of January 2021, our analysis shows that Hologic almost neglects market trends. The company is overvalued and projects very low chance of financial distress for the next 2 years. Our overall 30 days buy-hold-sell recommendation on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Hologic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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