Hologic

Methodology

Hologic's women's health diagnostic equipment generates relatively stable earnings from breast imaging systems, molecular diagnostics, and surgical products. The company's installed base of mammography systems creates recurring service revenue. This calculation works reasonably well, though COVID testing revenue created temporary earnings inflation that has since normalized—focusing on core women's health franchise provides more reliable baseline profitability.

Methodology

Hologic typically shows moderate PEG ratios reflecting steady growth from breast health screening volumes and diagnostic testing adoption. The company's focus on women's health provides a defensible niche. Compare to other medical device companies to assess whether Hologic's category specialization and recurring revenue characteristics justify valuations relative to broader medical equipment peers.

Methodology

Hologic does not pay dividends, prioritizing debt reduction post-COVID test revenue windfall and strategic investments in women's health technologies. Management focuses on expanding diagnostic capabilities and international markets. Total return depends on Hologic's ability to grow beyond mammography into adjacent women's health diagnostics and sustain margins post-COVID testing normalization.