Taking everything into account, HOLX scores 6 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate. With these ratings, HOLX could be worth investigating further 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.
HOLX had positive earnings in each of the past 5 years.
HOLX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 6.28%, HOLX belongs to the best of the industry, outperforming 86.41% of the companies in the same industry.
HOLX's Return On Equity of 11.21% is amongst the best of the industry. HOLX outperforms 87.50% of its industry peers.
The Return On Invested Capital of HOLX (11.59%) is better than 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

HOLX has a Profit Margin of 13.80%. This is amongst the best in the industry. HOLX outperforms 90.76% of its industry peers.
HOLX's Profit Margin has declined in the last couple of years.
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.
HOLX has a Gross Margin of 56.35%. This is comparable to the rest of the industry: HOLX outperforms 55.43% of its industry peers.
In the last couple of years the Gross Margin of HOLX has remained more or less at the same level.

		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

HOLX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HOLX has been reduced compared to 1 year ago.
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

HOLX has an Altman-Z score of 4.27. This indicates that HOLX is financially healthy and has little risk of bankruptcy at the moment.
HOLX has a Altman-Z score of 4.27. This is in the better half of the industry: HOLX outperforms 75.54% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.79, HOLX belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that HOLX is not too dependend on debt financing.
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/WACC1.17

WACC9.91%

2.3 Liquidity

A Current Ratio of 3.75 indicates that HOLX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.75, HOLX is in the better half of the industry, outperforming 66.30% of the companies in the same industry.
A Quick Ratio of 3.06 indicates that HOLX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.06, HOLX is in the better half of the industry, outperforming 67.93% of the companies in the same industry.

		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

The Earnings Per Share has been growing slightly by 4.66% over the past year.
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.
HOLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.66% yearly.

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

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

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.56, HOLX is valued on the expensive side.
HOLX's Price/Earnings ratio is rather cheap when compared to the industry. HOLX is cheaper than 84.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.39, HOLX is valued a bit cheaper.
HOLX is valuated correctly with a Price/Forward Earnings ratio of 16.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOLX indicates a rather cheap valuation: HOLX is cheaper than 86.96% of the companies listed in the same industry.
HOLX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	17.56
Fwd PE	16.13

4.2 Price Multiples

86.96% of the companies in the same industry are more expensive than HOLX, based on the Enterprise Value to EBITDA ratio.
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	18.47
EV/EBITDA	12.29

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.
HOLX has a very decent profitability rating, which may justify a higher PE ratio.