VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
NASDAQ:VREX - US92214X1063 - Common Stock
11.45 USD
+0.17 (+1.51%)
11.42 USD
-0.03 (-0.26%)
We assign a fundamental rating of 4 out of 10 to VREX. VREX was compared to 185 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. VREX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year VREX was profitable.
VREX had a positive operating cash flow in the past year.
In multiple years VREX reported negative net income over the last 5 years.
VREX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -3.09%, VREX is doing good in the industry, outperforming 65.41% of the companies in the same industry.
With a decent Return On Equity value of -7.64%, VREX is doing good in the industry, outperforming 65.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.54%, VREX is in the better half of the industry, outperforming 71.89% of the companies in the same industry.
VREX had an Average Return On Invested Capital over the past 3 years of 5.21%. This is below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROIC | 3.54% |
ROA(3y)0.82%
ROA(5y)-0.22%
ROE(3y)1.73%
ROE(5y)-0.8%
ROIC(3y)5.21%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 6.44%, VREX is in the better half of the industry, outperforming 72.43% of the companies in the same industry.
In the last couple of years the Operating Margin of VREX has declined.
The Gross Margin of VREX (33.74%) is worse than 73.51% 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 | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% |
OM growth 3Y-20.93%
OM growth 5Y-6.85%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.94%
GM growth 5Y-0.37%
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.
The number of shares outstanding for VREX has been increased compared to 5 years ago.
VREX has a worse debt/assets ratio than last year.
2.2 Solvency
VREX has an Altman-Z score of 1.63. This is a bad value and indicates that VREX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, VREX is in line with its industry, outperforming 57.84% of the companies in the same industry.
VREX has a debt to FCF ratio of 15.16. This is a negative value and a sign of low solvency as VREX would need 15.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.16, VREX is in the better half of the industry, outperforming 71.35% 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.
With a Debt to Equity ratio value of 1.04, VREX is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 15.16 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.51
WACC6.99%
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 69.73% of the companies in the same industry.
VREX has a Quick Ratio of 2.36. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Quick ratio (2.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 |
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%.
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 -9.22% 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)-9.22%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%-2.92%
3.2 Future
VREX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.27% yearly.
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 2Y21.23%
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.
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 correctly with a Price/Earnings ratio of 16.36.
Based on the Price/Earnings ratio, VREX is valued cheaper than 84.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of VREX to the average of the S&P500 Index (27.14), we can say VREX is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.16 indicates a correct valuation of VREX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 87.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. VREX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VREX is valued cheaper than 91.89% of the companies in the same industry.
95.14% of the companies in the same industry are more expensive than VREX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.57 | ||
| EV/EBITDA | 10.03 |
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.
VREX's earnings are expected to grow with 23.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y21.23%
EPS Next 3Y23.27%
5. Dividend
5.1 Amount
VREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.45
+0.17 (+1.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change-0.69%
Ins Owners1.67%
Ins Owner Change-1.81%
Market Cap475.18M
Analysts83.64
Price Target17.75 (55.02%)
Short Float %3.16%
Short Ratio2.9
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)4.82%
PT rev (3m)-17.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)50.82%
EPS NY rev (3m)21.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)4.25%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 14.16 | ||
| P/S | 0.57 | ||
| P/FCF | 12.57 | ||
| P/OCF | 7.97 | ||
| P/B | 0.86 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)0.7
EY6.11%
EPS(NY)0.81
Fwd EY7.06%
FCF(TTM)0.91
FCFY7.95%
OCF(TTM)1.44
OCFY12.54%
SpS19.94
BVpS13.25
TBVpS5.9
PEG (NY)0.58
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROCE | 4.48% | ||
| ROIC | 3.54% | ||
| ROICexc | 4.36% | ||
| ROICexgc | 6.37% | ||
| OM | 6.44% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% | ||
| FCFM | 4.57% |
ROA(3y)0.82%
ROA(5y)-0.22%
ROE(3y)1.73%
ROE(5y)-0.8%
ROIC(3y)5.21%
ROIC(5y)N/A
ROICexc(3y)6.12%
ROICexc(5y)N/A
ROICexgc(3y)9.47%
ROICexgc(5y)N/A
ROCE(3y)6.6%
ROCE(5y)N/A
ROICexcg growth 3Y-22.2%
ROICexcg growth 5Y-8.3%
ROICexc growth 3Y-20.66%
ROICexc growth 5Y-5.83%
OM growth 3Y-20.93%
OM growth 5Y-6.85%
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 | 15.16 | ||
| Debt/EBITDA | 7.1 | ||
| Cap/Depr | 79.85% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 73.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 1.63 |
F-Score3
WACC6.99%
ROIC/WACC0.51
Cap/Depr(3y)71.04%
Cap/Depr(5y)62.62%
Cap/Sales(3y)2.71%
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 2Y21.23%
EPS Next 3Y23.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.22%
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 1Y-11.75%
EBIT growth 3Y-21.16%
EBIT growth 5Y-6.13%
EBIT Next Year93.17%
EBIT Next 3Y38.19%
EBIT Next 5YN/A
FCF growth 1Y188.55%
FCF growth 3Y-36.33%
FCF growth 5Y-17.43%
OCF growth 1Y56.84%
OCF growth 3Y-20.23%
OCF growth 5Y-8.15%