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 rivals 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).
Hologic's financial performance is highlighted by its Return on Invested Capital (ROIC) of 10.04%, surpassing its Weighted Average Cost of Capital (WACC) of 8.19%. This signifies that Hologic is effectively generating returns that exceed its cost of capital, a crucial indicator of financial health and investor value. The ROIC to WACC ratio of 1.23 further underscores Hologic's efficient capital utilization.
In contrast, Henry Schein's ROIC of 4.90% against a WACC of 7.49% results in a ROIC to WACC ratio of 0.65, indicating less efficient capital use. DENTSPLY SIRONA's negative ROIC of -5.73% versus a WACC of 6.96% leads to a ROIC to WACC ratio of -0.82, highlighting significant capital utilization challenges. On the other hand, ResMed showcases superior efficiency with a ROIC of 20.06% and a WACC of 7.55%, achieving a ROIC to WACC ratio of 2.66, making it an attractive investment option for those seeking high returns on capital.
