Hologic, Inc. (NASDAQ:HOLX) Financial Performance Analysis

• Hologic's ROIC stands at 10.04%, indicating efficient capital utilization compared to its peers.
• ResMed Inc. showcases the highest efficiency with a ROIC of 20.06% and a ROIC to WACC ratio of 2.69.
• Companies like Henry Schein, Inc. and DENTSPLY SIRONA Inc. display lower efficiency in capital utilization, with ROIC to WACC ratios below 1.

Hologic, Inc. (NASDAQ:HOLX) is a prominent player in the medical technology industry, specializing in women's health, diagnostics, and medical imaging solutions. The company is known for its innovative products and services that aim to improve patient care and outcomes. Hologic competes with other major companies in the healthcare sector, such as Henry Schein, Inc. (HSIC), DENTSPLY SIRONA Inc. (XRAY), ResMed Inc. (RMD), Laboratory Corporation of America Holdings (LH), and The Cooper Companies, Inc. (COO).

In evaluating Hologic's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. Hologic's ROIC stands at 10.04%, while its WACC is 7.92%. This results in a ROIC to WACC ratio of 1.27, indicating that the company is generating returns above its cost of capital. This is a positive indicator for investors, as it suggests efficient capital utilization.

When comparing Hologic to its peers, Henry Schein, Inc. has a ROIC of 5.92% and a WACC of 7.15%, resulting in a ROIC to WACC ratio of 0.83. This indicates that Henry Schein is not generating returns above its cost of capital, which may be a concern for investors. Similarly, DENTSPLY SIRONA Inc. has a negative ROIC of -17.66% and a WACC of 6.59%, leading to a ROIC to WACC ratio of -2.68, highlighting inefficiencies in capital utilization.

ResMed Inc. stands out among the peers with a ROIC of 20.06% and a WACC of 7.46%, resulting in a ROIC to WACC ratio of 2.69. This indicates that ResMed is generating significantly higher returns on its invested capital compared to its cost of capital, making it the most efficient in utilizing its capital among the group. This efficiency may attract investors seeking high capital returns.

Laboratory Corporation of America Holdings and The Cooper Companies, Inc. also show lower ROIC to WACC ratios of 0.69 and 0.54, respectively. These figures suggest that both companies are not generating returns above their cost of capital, which may be a concern for investors. Overall, Hologic's favorable ROIC to WACC ratio indicates efficient capital use, although it is outperformed by ResMed in this specific metric.