Nasdaq:HOLX
HOLOGIC INC
A leading provider of advanced medical imaging and molecular diagnostics solutions focused on women's health and cancer detection technologies.
Key Metrics
Investment Thesis
Bull Case
Investors may buy HOLX due to its dominant position in the high-growth breast health sector, consistent double-digit gross margins reflected in a $2.12B gross profit, and robust free cash flow supporting substantial share repurchases of $752.9M which enhance shareholder value.
Bear Case
Concerns include the recent dip in net income from $789.5M to $565.7M, a large retained earnings deficit of -$3.41B indicating historical losses or heavy investment phases, and high levels of long-term debt at $2.50B combined with other liabilities exceeding equity.
About HOLOGIC INC
Hologic Inc. designs, manufactures, and markets healthcare diagnostic products including imaging systems like MammoSuite for breast health and molecular diagnostics platforms serving radiology and oncology markets globally.
Analysis
Management Discussion
Hologic reported revenue of $4.10B with operating profit reaching $714.3M, demonstrating strong cash generation capabilities evidenced by $1.06B in operating cash flow despite significant capital expenditures of $58.8M and strategic acquisitions totaling $321.5M.
Industry Overview
The medical imaging and diagnostics industry is characterized by rapid technological innovation, stringent regulatory oversight from bodies like the FDA, and a shift towards value-based care models that favor integrated service agreements over one-time equipment sales.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $4.03B | $4.03B | $4.10B |
| Cost of Revenue | $1.96B | $1.80B | $1.60B |
| Gross Profit | $2.07B | $2.23B | $2.12B |
| Operating Expenses | $1.40B | $1.35B | $1.40B |
| Operating Income | $668.4M | $882.6M | $714.3M |
| R&D | $294.3M | $272.8M | $248.2M |
| G&A | $392.4M | $409.4M | $449.3M |
| Marketing | $595.2M | $585.4M | $620.6M |
| Stock-Based Comp | $79.6M | $82.3M | $84.3M |
| Depreciation | $89.6M | $99.3M | $108.9M |
| Amortization | $28.1M | $29.2M | $14.4M |
| Other OpEx | $121.2M | $77.6M | $85.5M |
| Non-Operating Income | $7.7M | $-17.5M | $-33.1M |
| Interest Expense | $111.1M | $122.1M | — |
| Interest Income | $120.5M | $108.7M | $74.4M |
| Pre-Tax Income | $676.1M | $865.1M | $681.2M |
| Income Tax | $220.1M | $75.6M | $115.5M |
| Continuing Ops | $456.0M | $789.5M | $565.7M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $456.0M | $789.5M | $565.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $456.0M | $789.5M | $565.7M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $4.18B | $3.82B | $3.67B |
| Cash & Equivalents | $2.72B | $2.16B | $1.96B |
| Marketable Securities | — | $173.4M | $243.2M |
| Accounts Receivable | $625.6M | $600.4M | $600.8M |
| Inventory | $617.6M | $679.8M | $679.4M |
| Prepaid Expenses | $175.3M | $156.2M | $152.0M |
| Other Current Assets | $43.5M | $53.3M | $33.2M |
| Long-Term Assets | $4.95B | $5.33B | $5.35B |
| PP&E (Net) | $517.0M | $537.8M | $559.6M |
| Intangibles | $888.6M | $844.6M | $589.1M |
| Goodwill | $3.28B | $3.44B | $3.64B |
| Operating Leases | $62.7M | $92.2M | $94.1M |
| LT Investments | — | $96.4M | $0 |
| Other LT Assets | $205.2M | $318.6M | $463.4M |
| Total Assets | $9.14B | $9.16B | $9.01B |
| Current Liabilities | $1.21B | $1.04B | $977.2M |
| Accounts Payable | $175.2M | $203.8M | $193.4M |
| Current Debt | $287.0M | $37.5M | $2.9M |
| Current Leases | $20.4M | $24.0M | $27.0M |
| Other Current Liab | $190.1M | $192.2M | $176.2M |
| Long-Term Liabilities | $2.92B | $2.99B | $2.99B |
| Long-Term Debt | $2.53B | $2.50B | $2.50B |
| LT Operating Leases | $47.1M | $83.9M | $79.4M |
| Other LT Liab | $336.8M | $407.8M | $405.4M |
| Total Liabilities | $4.12B | $4.03B | $3.97B |
| Shareholders' Equity | $5.02B | $5.13B | $5.05B |
| Paid-In Capital | $6.14B | $6.24B | $6.35B |
| Retained Earnings | $2.06B | $2.85B | $3.41B |
| AOCI | $-147.6M | $-111.5M | $-100.8M |
| Treasury Stock | $3.04B | $3.85B | $4.61B |
| Total L&E | $9.14B | $9.16B | $9.01B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $456.0M | $789.5M | $565.7M |
| Non-Cash Adjustments | $652.6M | $370.0M | $588.8M |
| Working Capital Changes | $-57.4M | $125.7M | $-97.4M |
| Cash from Operations | $1.05B | $1.29B | $1.06B |
| Capital Expenditures | $91.8M | $72.4M | $58.8M |
| Cash from Investing | $-152.1M | $-781.0M | $-482.7M |
| Share Buybacks | $474.8M | $835.1M | $752.9M |
| Cash from Financing | $-483.2M | $-1.11B | $-777.2M |
| FX Effect | $300.0K | $8.9M | $2.1M |
| Net Change in Cash | $416.2M | $-595.5M | $-200.7M |
| Beginning Cash | $2.34B | $2.76B | $2.16B |
| Ending Cash | $2.76B | $2.16B | $1.96B |
Frequently Asked Questions
How does HOLOGIC INC make money?
The company derives revenue primarily from Imaging Systems (MRI, CT, Ultrasound, Mammography), Molecular Diagnostics (in vitro testing reagents and instruments), and Service Operations (maintenance contracts and parts for installed equipment).
What are the main risks for HOLX?
Regulatory approval delays for new medical devices, potential price pressure from payers on diagnostic tests, exposure to foreign exchange fluctuations impacting international sales, and competition from larger tech giants entering the imaging space.
What is HOLX's competitive advantage?
Strong intellectual property portfolio in breast imaging technology, high switching costs due to integrated service contracts with hospitals, and a diversified global footprint across emerging and developed markets.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.