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HOLX Hologic, Inc. - Fundamental Analysis

NEUTRAL
HOLX Stock | Fundamental Analysis & Investment Insights
NYSE Healthcare Medical Instruments & Supplies
Current Price
$74.56
Analyst Target
$76.5
+2.6% Upside
52W High
$75.34
52W Low
$51.9

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
HOLX exhibits mixed financial health with a weak Piotroski F-Score of 4/9 indicating marginal stability, while the Altman Z-Score of 28517251750.4 suggests an extremely low distress risk, reflecting robust balance sheet strength. The stock trades above its Graham Number of $35.65 and near its intrinsic value of $58.89, currently at $74.56, implying a premium valuation likely supported by solid profitability and growth expectations. Despite strong operating margins and consistent earnings beats, insider selling and lackluster long-term price performance temper bullish sentiment. Analysts concur with a 'hold' recommendation, aligning with the neutral stance.

Key Strengths

Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk and exceptional financial stability
Strong profitability with gross margin of 60.82%, operating margin of 32.74%, and ROE of 11.12%
Consistent earnings beat record: 3 out of last 4 quarters, with a 5-year history of positive surprises averaging over 20% in several periods
Healthy liquidity position with current ratio of 3.75 and quick ratio of 2.87, well above industry norms
Forward P/E of 14.92 suggests reasonable valuation relative to near-term earnings expectations

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial momentum and potential deterioration in key profitability or leverage trends
Current P/E of 29.94 is elevated compared to forward P/E, indicating potential overvaluation if growth slows
Insider selling activity totaling $9.81M in the last 6 months, including CEO sales, raises governance or sentiment concerns
Technical trend score of 10/100 reflects strong bearish momentum near 52-week high, suggesting resistance pressure
Dividend strength is 0/100 with no dividend policy, reducing appeal for income-oriented investors
AI Fair Value Estimate
Based on comprehensive analysis
$62.5
-16.2% below current price

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