HOLX – Market expectations are for Uniform ROA to fade, but management is confident about demand, sales initiatives, and guidance
- Hologic, Inc. (HOLX) currently trades in line with corporate averages yet above historical averages relative to Uniform earnings, with a 21.3x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to fade back to 22%, accompanied by 3% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to compress to 17% in 2023, accompanied by a 5% Uniform asset shrinkage.
If sustained going forward, these levels would imply a stock price closer to $34, representing significant potential equity downside for the firm.
However, the firm’s most recent earnings call suggests management is confident about demand, sales initiatives, and guidance.