NASDAQ:HOLX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Discover HOLOGIC INC (NASDAQ:HOLX), an undervalued stock highlighted by our stock screener. NASDAQ:HOLX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Analysis for NASDAQ:HOLX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:HOLX, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio, HOLX is valued cheaply inside the industry as 90.96% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 28.20. HOLX is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, HOLX is valued cheaply inside the industry as 90.96% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of HOLX to the average of the S&P500 Index (94.48), we can say HOLX is valued rather cheaply.
• HOLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HOLX is cheaper than 88.83% of the companies in the same industry.
• 94.15% of the companies in the same industry are more expensive than HOLX, based on the Price/Free Cash Flow ratio.
• HOLX has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination for NASDAQ:HOLX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HOLX scores a 8 out of 10:

• Looking at the Return On Assets, with a value of 8.52%, HOLX belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
• HOLX has a Return On Equity of 15.59%. This is amongst the best in the industry. HOLX outperforms 91.49% of its industry peers.
• The Return On Invested Capital of HOLX (10.23%) is better than 90.43% of its industry peers.
• HOLX had an Average Return On Invested Capital over the past 3 years of 11.66%. This is above the industry average of 8.15%.
• HOLX has a Profit Margin of 18.42%. This is amongst the best in the industry. HOLX outperforms 92.55% of its industry peers.
• The Operating Margin of HOLX (24.66%) is better than 94.68% of its industry peers.
• In the last couple of years the Operating Margin of HOLX has grown nicely.
• HOLX's Gross Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HOLX has earned a 8 out of 10:

• An Altman-Z score of 3.92 indicates that HOLX is not in any danger for bankruptcy at the moment.
• HOLX has a better Altman-Z score (3.92) than 72.34% of its industry peers.
• The Debt to FCF ratio of HOLX is 2.30, which is a good value as it means it would take HOLX, 2.30 years of fcf income to pay off all of its debts.
• HOLX has a Debt to FCF ratio of 2.30. This is amongst the best in the industry. HOLX outperforms 87.23% of its industry peers.
• Although HOLX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• A Current Ratio of 3.49 indicates that HOLX has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 3.49, HOLX is in the better half of the industry, outperforming 62.77% of the companies in the same industry.
• A Quick Ratio of 2.78 indicates that HOLX has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 2.78, HOLX is doing good in the industry, outperforming 60.64% of the companies in the same industry.

Growth Examination for NASDAQ:HOLX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HOLX scores a 4 out of 10:

• Measured over the past years, HOLX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.83% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of HOLX contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.