VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
12.23 USD
-0.12 (-0.97%)
Taking everything into account, VREX scores 4 out of 10 in our fundamental rating. VREX was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While VREX seems to be doing ok healthwise, there are quite some concerns on its profitability. VREX is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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
Looking at the Return On Assets, with a value of -12.34%, VREX is in line with its industry, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of -29.10%, VREX is in line with its industry, outperforming 55.56% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.07%, VREX is doing good in the industry, outperforming 77.25% of the companies in the same industry.
VREX had an Average Return On Invested Capital over the past 3 years of 5.22%. This is below the industry average of 8.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.34% | ||
| ROE | -29.1% | ||
| ROIC | 5.07% |
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
VREX's Operating Margin of 7.00% is fine compared to the rest of the industry. VREX outperforms 72.49% of its industry peers.
In the last couple of years the Operating Margin of VREX has declined.
The Gross Margin of VREX (34.06%) is worse than 73.02% of its industry peers.
VREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7% | ||
| PM (TTM) | N/A | ||
| GM | 34.06% |
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.
The number of shares outstanding for VREX has been increased compared to 5 years ago.
Compared to 1 year ago, VREX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.91 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, VREX is in line with its industry, outperforming 58.73% of the companies in the same industry.
The Debt to FCF ratio of VREX is 10.24, which is on the high side as it means it would take VREX, 10.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 10.24, VREX is doing good in the industry, outperforming 71.96% of the companies in the same industry.
VREX has a Debt/Equity ratio of 0.82. This is a neutral value indicating VREX is somewhat dependend on debt financing.
VREX has a worse Debt to Equity ratio (0.82) than 72.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.73
WACC6.96%
2.3 Liquidity
VREX has a Current Ratio of 3.51. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a better Current ratio (3.51) than 65.08% of its industry peers.
VREX has a Quick Ratio of 1.82. This is a normal value and indicates that VREX is financially healthy and should not expect problems in meeting its short term obligations.
VREX has a Quick ratio (1.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for VREX have decreased strongly by -13.58% in the last year.
The earnings per share for VREX have been decreasing by -15.81% on average. This is quite bad
The Revenue has decreased by -1.36% in the past year.
VREX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
EPS 1Y (TTM)-13.58%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%28.57%
Revenue 1Y (TTM)-1.36%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%-2.92%
3.2 Future
Based on estimates for the next years, VREX will show a very strong growth in Earnings Per Share. The EPS will grow by 23.27% on average per year.
VREX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y27.96%
EPS Next 2Y22.09%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue Next Year3.76%
Revenue Next 2Y3.37%
Revenue Next 3Y3.83%
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.
4. Valuation
4.1 Price/Earnings Ratio
VREX is valuated rather expensively with a Price/Earnings ratio of 17.47.
Compared to the rest of the industry, the Price/Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 81.48% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. VREX is valued slightly cheaper when compared to this.
VREX is valuated correctly with a Price/Forward Earnings ratio of 14.92.
Based on the Price/Forward Earnings ratio, VREX is valued cheaply inside the industry as 86.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, VREX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
89.95% 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 cheaply inside the industry as 92.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
VREX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VREX's earnings are expected to grow with 23.27% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y22.09%
EPS Next 3Y23.27%
5. Dividend
5.1 Amount
VREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VREX (11/13/2025, 10:56:58 AM)
12.23
-0.12 (-0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change0.94%
Ins Owners1.66%
Ins Owner Change-0.41%
Market Cap507.55M
Revenue(TTM)821.40M
Net Income(TTM)-132.50M
Analysts83.64
Price Target18.16 (48.49%)
Short Float %2.14%
Short Ratio2.82
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)242.7%
Min EPS beat(2)81.21%
Max EPS beat(2)404.2%
EPS beat(4)4
Avg EPS beat(4)171.36%
Min EPS beat(4)81.21%
Max EPS beat(4)404.2%
EPS beat(8)5
Avg EPS beat(8)76.69%
EPS beat(12)9
Avg EPS beat(12)57.27%
EPS beat(16)12
Avg EPS beat(16)50.06%
Revenue beat(2)2
Avg Revenue beat(2)3.04%
Min Revenue beat(2)1.51%
Max Revenue beat(2)4.57%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)4.57%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)8
Avg Revenue beat(16)-0.01%
PT rev (1m)2.3%
PT rev (3m)7.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)87.18%
EPS NY rev (1m)0%
EPS NY rev (3m)50.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 14.92 | ||
| P/S | 0.62 | ||
| P/FCF | 13.91 | ||
| P/OCF | 8.49 | ||
| P/B | 1.11 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.7
EY5.72%
EPS(NY)0.82
Fwd EY6.7%
FCF(TTM)0.88
FCFY7.19%
OCF(TTM)1.44
OCFY11.78%
SpS19.79
BVpS10.97
TBVpS5.83
PEG (NY)0.62
PEG (5Y)N/A
Graham Number13.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.34% | ||
| ROE | -29.1% | ||
| ROCE | 6.41% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 6.81% | ||
| OM | 7% | ||
| PM (TTM) | N/A | ||
| GM | 34.06% | ||
| FCFM | 4.44% |
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
ROICexgc growth 3Y-22.06%
ROICexgc 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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 87.92% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | 71.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.51 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.91 |
F-Score5
WACC6.96%
ROIC/WACC0.73
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)-13.58%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%28.57%
EPS Next Y27.96%
EPS Next 2Y22.09%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.36%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%-2.92%
Revenue Next Year3.76%
Revenue Next 2Y3.37%
Revenue Next 3Y3.83%
Revenue Next 5YN/A
EBIT growth 1Y26.37%
EBIT growth 3Y-21.02%
EBIT growth 5Y-6.03%
EBIT Next Year118.8%
EBIT Next 3Y36.54%
EBIT Next 5YN/A
FCF growth 1Y-31.52%
FCF growth 3Y-35.91%
FCF growth 5Y-17.1%
OCF growth 1Y-23.72%
OCF growth 3Y-20.06%
OCF growth 5Y-8.03%
VAREX IMAGING CORP / VREX FAQ
What is the fundamental rating for VREX stock?
ChartMill assigns a fundamental rating of 4 / 10 to VREX.
Can you provide the valuation status for VAREX IMAGING CORP?
ChartMill assigns a valuation rating of 7 / 10 to VAREX IMAGING CORP (VREX). This can be considered as Undervalued.
What is the profitability of VREX stock?
VAREX IMAGING CORP (VREX) has a profitability rating of 3 / 10.
Can you provide the financial health for VREX stock?
The financial health rating of VAREX IMAGING CORP (VREX) is 4 / 10.
What is the earnings growth outlook for VAREX IMAGING CORP?
The Earnings per Share (EPS) of VAREX IMAGING CORP (VREX) is expected to grow by 27.96% in the next year.