HOLX
Hologic Inc
Healthcare, TMT
03/04/2020
Presented
| Date | 02/28/2020 |
| Price | $47.12 |
| Market Cap | $12.41B |
| Ent Value | $16.95B |
| P/E Ratio | 51.61x |
| Book Value | $8.53 |
| Div Yield | 0% |
| Shares O/S | 263.30M |
| Ave Daily Vol | 1,961,896 |
| Short Int | N/A |
Current
| Price | $81.66 |
| Market Cap | $18.97B |
| Hologic, Inc. engages in the development, manufacture, and supply of diagnostics products, medical imaging systems, and surgical products dedicated to serve the healthcare needs of women. It operates through the following business segments: Breast Health, Diagnostics, Medical Aesthetics, GYN Surgical, and Skeletal Health. The Breast Health segment includes a broad portfolio of breast imaging and related products and accessories, including digital mammography systems, computer-aided detection, for mammography and minimally invasive breast biopsy devices, breast biopsy site markers, and breast biopsy guidance systems. The Diagnostics segment comprises Aptima family of Assays, target capture/nucleic acid extraction techonolgy, transcription-mediated amplification technology, hybridization protection assay and dual kinetic assat technologies, instrumentation, and Invader Chemistry Platform. The Medical Aesthetics segment offers SculpSure; PicoSure, MedLite, and RevLite; and MonaLisa Touch. The GYN Surgical segment encompasses the NovaSure Endometrial Ablation System and the MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment covers the discovery and horizon X-ray bone densitometry system, an ultrasound-based osteoporosis assessment product, and Fluoroscan mini C-arm imaging products. The company was founded by S. David Ellenbogen and Jay A. Stein in 1986 and is headquartered in Marlborough, MA. |
Publicly traded companies mentioned herein: Hologic Inc (HOLX), Koninklijke Philips NV (PHIA NA), Roche Holding AG (RHHBY US), Siemens AG (SIE GR)
Highlights
The presenter is long shares of Hologic (HOLX), seeing significant upside from a number of factors which include: accelerated organic revenue growth, aggressive share buybacks, commitment to higher leverage and elimination of the Cynosure overhang, an underperforming asset. He believes the stock is cheap relative to peers, given its history of guiding conservatively and delivering beats and raises. Historically the stock has traded closer to 20x earnings, but currently trades at 16x FY 2021 earnings or ~$46 per share. If management executes, he targets low-60s or ~20% upside from its current price.
Hologic is a $12B market cap medtech company selling medical devices for diagnostics, surgery, and medical imaging, primarily focused on women's health. Its three main revenue generating segments include:
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