VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
10.81 USD
-0.48 (-4.25%)
10.81 USD
0 (0%)
Taking everything into account, VREX scores 4 out of 10 in our fundamental rating. VREX was compared to 191 industry peers in the Health Care Equipment & Supplies industry. The financial health of VREX is average, but there are quite some concerns on its 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.
Each year in the past 5 years VREX had a positive operating cash flow.
1.2 Ratios
VREX has a Return On Assets (-12.34%) which is comparable to the rest of the industry.
VREX's Return On Equity of -29.10% is in line compared to the rest of the industry. VREX outperforms 54.45% of its industry peers.
VREX has a Return On Invested Capital of 5.07%. This is in the better half of the industry: VREX outperforms 76.96% of its industry peers.
VREX had an Average Return On Invested Capital over the past 3 years of 5.22%. This is below the industry average of 9.00%.
| 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
The Operating Margin of VREX (7.00%) is better than 73.82% of its industry peers.
VREX's Operating Margin has declined in the last couple of years.
VREX has a Gross Margin of 34.06%. This is in the lower half of the industry: VREX underperforms 72.77% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VREX is destroying value.
Compared to 1 year ago, VREX has more shares outstanding
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 1.85 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VREX (1.85) is comparable to the rest of the 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 73.82% 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 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.75
WACC6.79%
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.
The Current ratio of VREX (3.51) is better than 65.44% of its industry peers.
A Quick Ratio of 1.82 indicates that VREX should not have too much problems paying its short term obligations.
VREX's Quick ratio of 1.82 is in line compared to the rest of the industry. VREX outperforms 48.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
VREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.58%.
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 -1.36% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
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 2Y34.47%
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
The Price/Earnings ratio is 15.44, which indicates a correct valuation of VREX.
Based on the Price/Earnings ratio, VREX is valued cheaply inside the industry as 84.82% of the companies are valued more expensively.
VREX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.02.
A Price/Forward Earnings ratio of 10.87 indicates a reasonable valuation of VREX.
Based on the Price/Forward Earnings ratio, VREX is valued cheaper than 92.67% of the companies in the same industry.
VREX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
VREX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VREX is cheaper than 90.58% of the companies 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 95.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The 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)0.55
PEG (5Y)N/A
EPS Next 2Y34.47%
EPS Next 3Y23.27%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.81
-0.48 (-4.25%)
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 Change0.49%
Ins Owners1.66%
Ins Owner Change-0.41%
Market Cap448.62M
Analysts83.64
Price Target17.75 (64.2%)
Short Float %2.23%
Short Ratio2.13
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)0%
PT rev (3m)4.82%
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 | 15.44 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.55 | ||
| P/FCF | 12.29 | ||
| P/OCF | 7.5 | ||
| P/B | 0.99 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)0.7
EY6.48%
EPS(NY)0.99
Fwd EY9.2%
FCF(TTM)0.88
FCFY8.14%
OCF(TTM)1.44
OCFY13.33%
SpS19.79
BVpS10.97
TBVpS5.83
PEG (NY)0.55
PEG (5Y)N/A
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
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-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 | 1.85 |
F-Score5
WACC6.79%
ROIC/WACC0.75
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 2Y34.47%
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%