VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
NASDAQ:VREX - Nasdaq - US92214X1063 - Common Stock - Currency: USD
Overall VREX gets a fundamental rating of 4 out of 10. We evaluated VREX against 187 industry peers in the Health Care Equipment & Supplies industry. VREX has only an average score on both its financial health and profitability. VREX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
VREX had positive earnings in the past year.
In the past year VREX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VREX reported negative net income in multiple years.
VREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VREX's Return On Assets of -3.09% is fine compared to the rest of the industry. VREX outperforms 67.91% of its industry peers.
With a decent Return On Equity value of -7.64%, VREX is doing good in the industry, outperforming 68.98% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.56%, VREX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VREX is below the industry average of 7.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROIC | 3.56% |
ROA(3y)0.83%
ROA(5y)-0.21%
ROE(3y)1.75%
ROE(5y)-0.79%
ROIC(3y)5.22%
ROIC(5y)N/A
1.3 Margins
With a decent Operating Margin value of 6.47%, VREX is doing good in the industry, outperforming 73.26% of the companies in the same industry.
In the last couple of years the Operating Margin of VREX has declined.
The Gross Margin of VREX (33.74%) is worse than 72.19% of its industry peers.
VREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.47% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% |
OM growth 3Y-20.79%
OM growth 5Y-6.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.94%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VREX is destroying value.
VREX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VREX has more shares outstanding
VREX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that VREX is in the distress zone and has some risk of bankruptcy.
VREX has a Altman-Z score of 1.50. This is comparable to the rest of the industry: VREX outperforms 56.68% of its industry peers.
VREX has a debt to FCF ratio of 14.97. This is a negative value and a sign of low solvency as VREX would need 14.97 years to pay back of all of its debts.
VREX's Debt to FCF ratio of 14.97 is fine compared to the rest of the industry. VREX outperforms 72.19% of its industry peers.
VREX has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
VREX's Debt to Equity ratio of 1.04 is on the low side compared to the rest of the industry. VREX is outperformed by 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.54
WACC6.55%
2.3 Liquidity
A Current Ratio of 4.05 indicates that VREX has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.05, VREX is doing good in the industry, outperforming 65.78% of the companies in the same industry.
VREX has a Quick Ratio of 2.36. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Quick ratio (2.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
The earnings per share for VREX have decreased strongly by -36.54% in the last year.
The earnings per share for VREX have been decreasing by -15.81% on average. This is quite bad
Looking at the last year, VREX shows a decrease in Revenue. The Revenue has decreased by -3.31% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-36.54%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%62.5%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%3.25%
3.2 Future
The Earnings Per Share is expected to grow by 22.24% on average over the next years. This is a very strong growth
VREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.08% yearly.
EPS Next Y-15.15%
EPS Next 2Y17.54%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue Next Year-0.47%
Revenue Next 2Y1.94%
Revenue Next 3Y3.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.83 indicates a reasonable valuation of VREX.
VREX's Price/Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 91.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. VREX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.41, the valuation of VREX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 92.51% of the companies listed in the same industry.
VREX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
95.19% of the companies in the same industry are more expensive than VREX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VREX is valued cheaper than 97.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.75 | ||
| EV/EBITDA | 7.85 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VREX's earnings are expected to grow with 22.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.54%
EPS Next 3Y22.24%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VREX (8/1/2025, 3:12:23 PM)
7.15
-0.13 (-1.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change1.37%
Ins Owners1.68%
Ins Owner Change7.95%
Market Cap296.73M
Analysts83.64
Price Target16.93 (136.78%)
Short Float %2.83%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)84.18%
Min EPS beat(2)81.21%
Max EPS beat(2)87.15%
EPS beat(4)3
Avg EPS beat(4)63.06%
Min EPS beat(4)-29%
Max EPS beat(4)112.89%
EPS beat(8)5
Avg EPS beat(8)27.99%
EPS beat(12)9
Avg EPS beat(12)27.59%
EPS beat(16)12
Avg EPS beat(16)27.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)1.51%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)8
Avg Revenue beat(16)-0.24%
PT rev (1m)0%
PT rev (3m)-21.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-78.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.36 | ||
| P/FCF | 7.75 | ||
| P/OCF | 4.95 | ||
| P/B | 0.54 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 7.85 |
EPS(TTM)0.66
EY9.23%
EPS(NY)0.76
Fwd EY10.63%
FCF(TTM)0.92
FCFY12.91%
OCF(TTM)1.45
OCFY20.22%
SpS19.94
BVpS13.25
TBVpS5.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROCE | 4.5% | ||
| ROIC | 3.56% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 6.4% | ||
| OM | 6.47% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% | ||
| FCFM | 4.63% |
ROA(3y)0.83%
ROA(5y)-0.21%
ROE(3y)1.75%
ROE(5y)-0.79%
ROIC(3y)5.22%
ROIC(5y)N/A
ROICexc(3y)6.12%
ROICexc(5y)N/A
ROICexgc(3y)9.48%
ROICexgc(5y)N/A
ROCE(3y)6.6%
ROCE(5y)N/A
ROICexcg growth 3Y-22.06%
ROICexcg growth 5Y-8.2%
ROICexc growth 3Y-20.52%
ROICexc growth 5Y-5.73%
OM growth 3Y-20.79%
OM growth 5Y-6.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.94%
GM growth 5Y-0.37%
F-Score3
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 14.97 | ||
| Debt/EBITDA | 7.07 | ||
| Cap/Depr | 79.49% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 1.5 |
F-Score3
WACC6.55%
ROIC/WACC0.54
Cap/Depr(3y)70.75%
Cap/Depr(5y)62.44%
Cap/Sales(3y)2.7%
Cap/Sales(5y)2.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.54%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%62.5%
EPS Next Y-15.15%
EPS Next 2Y17.54%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%3.25%
Revenue Next Year-0.47%
Revenue Next 2Y1.94%
Revenue Next 3Y3.08%
Revenue Next 5YN/A
EBIT growth 1Y-11.42%
EBIT growth 3Y-21.02%
EBIT growth 5Y-6.03%
EBIT Next Year93.17%
EBIT Next 3Y38.19%
EBIT Next 5YN/A
FCF growth 1Y192.37%
FCF growth 3Y-35.91%
FCF growth 5Y-17.1%
OCF growth 1Y57.89%
OCF growth 3Y-20.06%
OCF growth 5Y-8.03%