VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
NASDAQ:VREX - Nasdaq - US92214X1063 - Common Stock - Currency: USD
VREX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
In multiple years VREX reported negative net income over the last 5 years.
Each year in the past 5 years VREX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of -3.09%, VREX is doing good in the industry, outperforming 67.91% of the companies in the same industry.
VREX's Return On Equity of -7.64% is fine compared to the rest of the industry. VREX outperforms 68.98% of its industry peers.
VREX has a Return On Invested Capital of 3.56%. This is in the better half of the industry: VREX outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VREX is below the industry average of 7.91%.
| 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.
VREX's Operating Margin has declined in the last couple of years.
VREX has a worse Gross Margin (33.74%) than 72.19% of its industry peers.
In the last couple of years the Gross Margin of VREX has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for VREX is higher compared to a year ago.
2.2 Solvency
VREX has an Altman-Z score of 1.51. This is a bad value and indicates that VREX is not financially healthy and even has some risk of bankruptcy.
VREX has a Altman-Z score of 1.51. This is comparable to the rest of the industry: VREX outperforms 54.55% of its industry peers.
The Debt to FCF ratio of VREX is 14.97, which is on the high side as it means it would take VREX, 14.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.97, VREX is in the better half of the industry, outperforming 72.19% of the companies in the same industry.
VREX has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
VREX has a worse Debt to Equity ratio (1.04) than 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.54
WACC6.64%
2.3 Liquidity
VREX has a Current Ratio of 4.05. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Current ratio of 4.05. This is in the better half of the industry: VREX outperforms 65.78% of its industry peers.
A Quick Ratio of 2.36 indicates that VREX has no problem at all paying its short term obligations.
VREX's Quick ratio of 2.36 is in line compared to the rest of the industry. VREX outperforms 53.48% of 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.
Measured over the past years, VREX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.81% on average per year.
The Revenue has decreased by -3.31% in the past year.
Measured over the past years, VREX shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
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
VREX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.24% yearly.
The Revenue is expected to grow by 3.08% on average over the next years.
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
VREX is valuated reasonably with a Price/Earnings ratio of 11.89.
Based on the Price/Earnings ratio, VREX is valued cheaply inside the industry as 92.51% of the companies are valued more expensively.
VREX is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.33, which indicates a very decent valuation of VREX.
VREX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 92.51% of the companies 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 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 95.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 97.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
VREX's earnings are expected to grow with 22.24% in the coming years. This may justify a more expensive valuation.
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 |
7.85
+0.3 (+3.97%)
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 Change-0.17%
Ins Owners1.68%
Ins Owner Change7.95%
Market Cap325.77M
Analysts83.64
Price Target16.93 (115.67%)
Short Float %3%
Short Ratio2.86
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)-20.95%
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 | 11.89 | ||
| Fwd PE | 10.33 | ||
| P/S | 0.39 | ||
| P/FCF | 8.51 | ||
| P/OCF | 5.43 | ||
| P/B | 0.59 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 7.99 |
EPS(TTM)0.66
EY8.41%
EPS(NY)0.76
Fwd EY9.68%
FCF(TTM)0.92
FCFY11.76%
OCF(TTM)1.45
OCFY18.42%
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 | 1.51 |
F-Score3
WACC6.64%
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%