VAREX IMAGING CORP (VREX)
US92214X1063 - Common Stock
Taking everything into account, VREX scores 4 out of 10 in our fundamental rating. VREX was compared to 192 industry peers in the Health Care Equipment & Supplies industry. VREX has an average financial health and profitability rating. VREX is valued correctly, but it does not seem to be growing.
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.
VREX had positive earnings in 4 of the past 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 3.59%, VREX is doing good in the industry, outperforming 79.17% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.84%, VREX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.33%, VREX is doing good in the industry, outperforming 75.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VREX is below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.84% | ||
| ROIC | 4.33% |
ROA(3y)2.64%
ROA(5y)0.87%
ROE(3y)5.92%
ROE(5y)1.69%
ROIC(3y)5.5%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VREX (5.08%) is better than 76.56% of its industry peers.
In the last couple of years the Profit Margin of VREX has grown nicely.
VREX has a Operating Margin of 7.78%. This is in the better half of the industry: VREX outperforms 73.96% of its industry peers.
In the last couple of years the Operating Margin of VREX has grown nicely.
Looking at the Gross Margin, with a value of 32.37%, VREX is doing worse than 71.88% of the companies in the same industry.
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 | 7.78% | ||
| PM (TTM) | 5.08% | ||
| GM | 32.37% |
OM growth 3YN/A
OM growth 5Y8.45%
PM growth 3YN/A
PM growth 5Y8.7%
GM growth 3Y7.26%
GM growth 5Y-0.21%
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.
VREX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VREX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.11 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.11, VREX is doing good in the industry, outperforming 61.46% of the companies in the same industry.
VREX has a debt to FCF ratio of 4.58. This is a neutral value as VREX would need 4.58 years to pay back of all of its debts.
The Debt to FCF ratio of VREX (4.58) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that VREX is somewhat dependend on debt financing.
The Debt to Equity ratio of VREX (0.78) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.47
WACC9.28%
2.3 Liquidity
A Current Ratio of 4.30 indicates that VREX has no problem at all paying its short term obligations.
The Current ratio of VREX (4.30) is better than 62.50% of its industry peers.
VREX has a Quick Ratio of 2.37. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX's Quick ratio of 2.37 is in line compared to the rest of the industry. VREX outperforms 48.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.3 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
VREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.79%.
Measured over the past years, VREX shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.31% on average per year.
Looking at the last year, VREX shows a small growth in Revenue. The Revenue has grown by 1.34% in the last year.
Measured over the past years, VREX shows a small growth in Revenue. The Revenue has been growing by 2.93% on average per year.
EPS 1Y (TTM)-16.79%
EPS 3Y142.91%
EPS 5Y-0.31%
EPS growth Q2Q-71.43%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y6.56%
Revenue growth 5Y2.93%
Revenue growth Q2Q-7.59%
3.2 Future
Based on estimates for the next years, VREX will show a small growth in Earnings Per Share. The EPS will grow by 0.47% on average per year.
VREX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.55% yearly.
EPS Next Y-23.04%
EPS Next 2Y0.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.04%
Revenue Next 2Y-0.55%
Revenue Next 3YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.25, which indicates a correct valuation of VREX.
VREX's Price/Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 91.67% of the companies in the same industry.
VREX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.67.
The Price/Forward Earnings ratio is 12.48, which indicates a correct valuation of VREX.
VREX's Price/Forward Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 95.83% of the companies in the same industry.
VREX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VREX is valued cheaper than 94.79% of the companies in the same industry.
VREX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VREX is cheaper than 99.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
VREX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VAREX IMAGING CORP
NASDAQ:VREX (4/30/2024, 7:00:02 PM)
After market: 16.25 0 (0%)16.25
-0.66 (-3.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap659.75M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 12.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 7.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.78% | ||
| PM (TTM) | 5.08% | ||
| GM | 32.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.3 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.79%
EPS 3Y142.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.34%
Revenue growth 3Y6.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y