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VAREX IMAGING CORP (VREX) Stock Fundamental Analysis

NASDAQ:VREX - Nasdaq - US92214X1063 - Common Stock - Currency: USD

8.32  +0.06 (+0.73%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to VREX. VREX was compared to 188 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of VREX get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on VREX.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year VREX was profitable.
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.
Each year in the past 5 years VREX had a positive operating cash flow.
VREX Yearly Net Income VS EBIT VS OCF VS FCFVREX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M

1.2 Ratios

VREX has a Return On Assets of -3.09%. This is in the better half of the industry: VREX outperforms 68.09% of its industry peers.
Looking at the Return On Equity, with a value of -7.64%, VREX is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
VREX has a Return On Invested Capital of 3.56%. This is in the better half of the industry: VREX outperforms 72.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VREX is below the industry average of 7.89%.
Industry RankSector 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
VREX Yearly ROA, ROE, ROICVREX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

VREX has a better Operating Margin (6.47%) than 73.40% of its industry peers.
VREX's Operating Margin has declined in the last couple of years.
VREX has a Gross Margin of 33.74%. This is in the lower half of the industry: VREX underperforms 72.87% of its industry peers.
VREX's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
VREX Yearly Profit, Operating, Gross MarginsVREX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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4

2. Health

2.1 Basic Checks

VREX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VREX has been increased compared to 1 year ago.
VREX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VREX has a worse debt to assets ratio.
VREX Yearly Shares OutstandingVREX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
VREX Yearly Total Debt VS Total AssetsVREX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

VREX has an Altman-Z score of 1.53. This is a bad value and indicates that VREX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VREX (1.53) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 14.97, VREX is doing good in the industry, outperforming 72.87% of the companies in the same industry.
A Debt/Equity ratio of 1.04 is on the high side and indicates that VREX has dependencies on debt 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 78.19% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF 14.97
Altman-Z 1.53
ROIC/WACC0.53
WACC6.71%
VREX Yearly LT Debt VS Equity VS FCFVREX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

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 65.43% of the companies in the same industry.
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 53.19% of its industry peers.
Industry RankSector Rank
Current Ratio 4.05
Quick Ratio 2.36
VREX Yearly Current Assets VS Current LiabilitesVREX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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4

3. Growth

3.1 Past

VREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.54%.
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.
Looking at the last year, VREX shows a decrease in Revenue. The Revenue has decreased by -3.31% in the last 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 28.16% yearly.
Based on estimates for the next years, VREX will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y5.65%
EPS Next 2Y21.23%
EPS Next 3Y28.16%
EPS Next 5YN/A
Revenue Next Year0.57%
Revenue Next 2Y2.52%
Revenue Next 3Y3.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
VREX Yearly Revenue VS EstimatesVREX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
VREX Yearly EPS VS EstimatesVREX Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.61 indicates a correct valuation of VREX.
VREX's Price/Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 89.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.43, VREX is valued rather cheaply.
A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of VREX.
92.02% of the companies in the same industry are more expensive than VREX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.17. VREX is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.61
Fwd PE 10.29
VREX Price Earnings VS Forward Price EarningsVREX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

94.68% of the companies in the same industry are more expensive than VREX, based on the Enterprise Value to EBITDA ratio.
97.34% of the companies in the same industry are more expensive than VREX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.02
EV/EBITDA 8.36
VREX Per share dataVREX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as VREX's earnings are expected to grow with 28.16% in the coming years.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y21.23%
EPS Next 3Y28.16%

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0

5. Dividend

5.1 Amount

No dividends for VREX!.
Industry RankSector Rank
Dividend Yield N/A

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VAREX IMAGING CORP

NASDAQ:VREX (6/5/2025, 12:01:42 PM)

8.32

+0.06 (+0.73%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners95.77%
Inst Owner Change-4.38%
Ins Owners1.64%
Ins Owner Change14.31%
Market Cap345.28M
Analysts83.64
Price Target21.62 (159.86%)
Short Float %2.67%
Short Ratio1.99
Dividend
Industry RankSector 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)0%
EPS NQ rev (1m)-78.35%
EPS NQ rev (3m)-79.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-9.37%
Revenue NQ rev (3m)-9.12%
Revenue NY rev (1m)-2.28%
Revenue NY rev (3m)-2.16%
Valuation
Industry RankSector Rank
PE 12.61
Fwd PE 10.29
P/S 0.42
P/FCF 9.02
P/OCF 5.75
P/B 0.63
P/tB 1.41
EV/EBITDA 8.36
EPS(TTM)0.66
EY7.93%
EPS(NY)0.81
Fwd EY9.72%
FCF(TTM)0.92
FCFY11.09%
OCF(TTM)1.45
OCFY17.38%
SpS19.94
BVpS13.25
TBVpS5.88
PEG (NY)2.23
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.53
F-Score3
WACC6.71%
ROIC/WACC0.53
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 Y5.65%
EPS Next 2Y21.23%
EPS Next 3Y28.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%3.25%
Revenue Next Year0.57%
Revenue Next 2Y2.52%
Revenue Next 3Y3.81%
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%