We assign a fundamental rating of 6 out of 10 to HOLX. HOLX was compared to 184 industry peers in the Health Care Equipment & Supplies industry. HOLX gets an excellent profitability rating and is at the same time showing great financial health properties. HOLX has a decent growth rate and is not valued too expensively. These ratings would make HOLX suitable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HOLX had positive earnings in the past year.
HOLX had a positive operating cash flow in the past year.
Each year in the past 5 years HOLX has been profitable.
Each year in the past 5 years HOLX had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 6.28%, HOLX belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.21%, HOLX belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
HOLX has a Return On Invested Capital of 11.59%. This is amongst the best in the industry. HOLX outperforms 91.30% of its industry peers.
HOLX had an Average Return On Invested Capital over the past 3 years of 10.78%. This is in line with the industry average of 8.81%.
The 3 year average ROIC (10.78%) for HOLX is below the current ROIC(11.59%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	6.28%
ROE	11.21%
ROIC	11.59%

ROA(3y)6.63%

ROA(5y)11.04%

ROE(3y)11.9%

ROE(5y)21.35%

ROIC(3y)10.78%

ROIC(5y)15.7%

1.3 Margins

The Profit Margin of HOLX (13.80%) is better than 90.76% of its industry peers.
In the last couple of years the Profit Margin of HOLX has declined.
With an excellent Operating Margin value of 26.06%, HOLX belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
In the last couple of years the Operating Margin of HOLX has declined.
With a Gross Margin value of 56.35%, HOLX perfoms like the industry average, outperforming 55.43% of the companies in the same industry.
HOLX's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	26.06%
PM (TTM)	13.8%
GM	56.35%

OM growth 3Y-8.39%

OM growth 5Y-3.08%

PM growth 3Y-19.83%

PM growth 5Y-14.12%

GM growth 3Y-3.13%

GM growth 5Y-1.14%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HOLX is creating some value.
Compared to 1 year ago, HOLX has less shares outstanding
HOLX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HOLX is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.27 indicates that HOLX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.27, HOLX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of HOLX is 2.79, which is a good value as it means it would take HOLX, 2.79 years of fcf income to pay off all of its debts.
HOLX's Debt to FCF ratio of 2.79 is amongst the best of the industry. HOLX outperforms 83.70% of its industry peers.
HOLX has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HOLX (0.50) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	2.79
Altman-Z	4.27

ROIC/WACC1.18

WACC9.85%

2.3 Liquidity

HOLX has a Current Ratio of 3.75. This indicates that HOLX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HOLX (3.75) is better than 66.30% of its industry peers.
A Quick Ratio of 3.06 indicates that HOLX has no problem at all paying its short term obligations.
HOLX's Quick ratio of 3.06 is fine compared to the rest of the industry. HOLX outperforms 67.93% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.75
Quick Ratio	3.06

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HOLX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.66%.
The Earnings Per Share has been growing slightly by 1.31% on average over the past years.
The Revenue has been growing slightly by 1.74% in the past year.
Measured over the past years, HOLX shows a small growth in Revenue. The Revenue has been growing by 1.66% on average per year.

EPS 1Y (TTM)4.66%

EPS 3Y-10.77%

EPS 5Y1.31%

EPS Q2Q%11.88%

Revenue 1Y (TTM)1.74%

Revenue growth 3Y-5.53%

Revenue growth 5Y1.66%

Sales Q2Q%6.24%

3.2 Future

Based on estimates for the next years, HOLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
HOLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.

EPS Next Y8.84%

EPS Next 2Y9.63%

EPS Next 3Y9.54%

EPS Next 5Y8.79%

Revenue Next Year5.04%

Revenue Next 2Y5.26%

Revenue Next 3Y5.31%

Revenue Next 5Y4.75%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

HOLX is valuated rather expensively with a Price/Earnings ratio of 17.61.
Based on the Price/Earnings ratio, HOLX is valued cheaply inside the industry as 85.33% of the companies are valued more expensively.
HOLX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
With a Price/Forward Earnings ratio of 16.18, HOLX is valued correctly.
HOLX's Price/Forward Earnings ratio is rather cheap when compared to the industry. HOLX is cheaper than 87.50% of the companies in the same industry.
HOLX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.61
Fwd PE	16.18

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HOLX is valued cheaper than 86.96% of the companies in the same industry.
90.76% of the companies in the same industry are more expensive than HOLX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	18.53
EV/EBITDA	12.3

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HOLX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of HOLX may justify a higher PE ratio.