Hologic, Inc. (NASDAQ:HOLX) is a leading medical technology company specializing in women's health, offering a comprehensive range of products and services in diagnostics, breast health, and surgical solutions. The company stands out in the competitive healthcare sector, which includes firms like Henry Schein, Inc., DENTSPLY SIRONA Inc., ResMed Inc., Laboratory Corporation of America Holdings, and The Cooper Companies, Inc.
Hologic's financial performance showcases its operational efficiency, with a Return on Invested Capital (ROIC) of 10.04%, surpassing its Weighted Average Cost of Capital (WACC) of 8.24%. This achievement indicates that Hologic is generating returns that exceed its cost of capital, a positive sign for investors. The company's ROIC to WACC ratio stands at 1.22, highlighting its efficient use of capital.
In contrast, Henry Schein, Inc. reports a ROIC of 4.90% against a WACC of 7.37%, resulting in a ROIC to WACC ratio of 0.66. This suggests that Henry Schein is not generating returns above its cost of capital, potentially making it less appealing to investors. DENTSPLY SIRONA Inc. faces a more challenging situation with a negative ROIC of -5.73% and a WACC of 7.12%, leading to a ROIC to WACC ratio of -0.80, indicating capital use inefficiency.
ResMed Inc. distinguishes itself with a ROIC of 20.06% and a WACC of 7.50%, achieving a ROIC to WACC ratio of 2.68. This exceptional performance suggests that ResMed is generating significantly higher returns on its invested capital compared to its cost of capital, pointing to strong operational efficiency and growth potential.
Meanwhile, Laboratory Corporation of America Holdings and The Cooper Companies, Inc. report ROIC to WACC ratios of 0.67 and 0.50, respectively. These figures imply that both companies are not generating returns above their cost of capital, potentially making them less attractive to investors compared to Hologic and ResMed.
