VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
NASDAQ:VREX - Nasdaq - US92214X1063 - Common Stock - Currency: USD
Overall VREX gets a fundamental rating of 4 out of 10. We evaluated VREX against 189 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 is not valued too expensively and it also shows a decent growth rate.
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.
1.2 Ratios
The Return On Assets of VREX (-3.57%) is better than 65.43% of its industry peers.
The Return On Equity of VREX (-8.79%) is better than 65.96% of its industry peers.
With a decent Return On Invested Capital value of 2.61%, VREX is doing good in the industry, outperforming 71.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VREX is below the industry average of 8.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -8.79% | ||
| ROIC | 2.61% |
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 (4.76%) is better than 72.34% of its industry peers.
In the last couple of years the Operating Margin of VREX has declined.
VREX's Gross Margin of 32.69% is on the low side compared to the rest of the industry. VREX is outperformed by 72.87% 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 | 4.76% | ||
| PM (TTM) | N/A | ||
| GM | 32.69% |
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
VREX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VREX has more shares outstanding
The number of shares outstanding for VREX has been increased compared to 5 years ago.
The debt/assets ratio for VREX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that VREX is in the distress zone and has some risk of bankruptcy.
VREX's Altman-Z score of 1.64 is in line compared to the rest of the industry. VREX outperforms 57.98% of its industry peers.
VREX has a debt to FCF ratio of 22.22. This is a negative value and a sign of low solvency as VREX would need 22.22 years to pay back of all of its debts.
The Debt to FCF ratio of VREX (22.22) is better than 69.68% of its industry peers.
VREX has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
VREX has a worse Debt to Equity ratio (1.06) than 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 22.22 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.3
WACC8.74%
2.3 Liquidity
VREX has a Current Ratio of 4.36. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VREX (4.36) is better than 72.87% of its industry peers.
A Quick Ratio of 2.50 indicates that VREX has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.50, VREX is in line with its industry, outperforming 59.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.36 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The earnings per share for VREX have decreased strongly by -50.88% in the last year.
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 -6.49% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-50.88%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%15.16%
3.2 Future
VREX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.48% yearly.
Based on estimates for the next years, VREX will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y6.78%
EPS Next 2Y24.09%
EPS Next 3Y24.48%
EPS Next 5YN/A
Revenue Next Year2.79%
Revenue Next 2Y3.05%
Revenue Next 3Y4.33%
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
With a Price/Earnings ratio of 22.57, VREX is valued on the expensive side.
Based on the Price/Earnings ratio, VREX is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VREX to the average of the S&P500 Index (29.62), we can say VREX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.93, the valuation of VREX can be described as correct.
Based on the Price/Forward Earnings ratio, VREX is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
VREX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 87.77% of the companies listed 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 89.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.18 | ||
| EV/EBITDA | 12.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VREX's earnings are expected to grow with 24.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)N/A
EPS Next 2Y24.09%
EPS Next 3Y24.48%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.64
-0.21 (-1.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.77%
Inst Owner Change-87.11%
Ins Owners1.64%
Ins Owner Change15.21%
Market Cap520.77M
Analysts83.64
Price Target21.62 (71.04%)
Short Float %2.1%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)100.02%
Min EPS beat(2)87.15%
Max EPS beat(2)112.89%
EPS beat(4)2
Avg EPS beat(4)36.73%
Min EPS beat(4)-29%
Max EPS beat(4)112.89%
EPS beat(8)5
Avg EPS beat(8)22.71%
EPS beat(12)9
Avg EPS beat(12)25.64%
EPS beat(16)12
Avg EPS beat(16)29.26%
Revenue beat(2)2
Avg Revenue beat(2)3.63%
Min Revenue beat(2)1.14%
Max Revenue beat(2)6.12%
Revenue beat(4)2
Avg Revenue beat(4)0.91%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)6.12%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)6
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.69%
PT rev (1m)-4.5%
PT rev (3m)-4.5%
EPS NQ rev (1m)4.25%
EPS NQ rev (3m)-48.52%
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-14.13%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 14.93 | ||
| P/S | 0.63 | ||
| P/FCF | 20.18 | ||
| P/OCF | 11.2 | ||
| P/B | 0.96 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)0.56
EY4.43%
EPS(NY)0.85
Fwd EY6.7%
FCF(TTM)0.63
FCFY4.95%
OCF(TTM)1.13
OCFY8.93%
SpS19.92
BVpS13.11
TBVpS5.8
PEG (NY)3.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -8.79% | ||
| ROCE | 3.31% | ||
| ROIC | 2.61% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 4.63% | ||
| OM | 4.76% | ||
| PM (TTM) | N/A | ||
| GM | 32.69% | ||
| FCFM | 3.14% |
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-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 22.22 | ||
| Debt/EBITDA | 8.33 | ||
| Cap/Depr | 70.17% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 67.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.36 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 1.64 |
F-Score4
WACC8.74%
ROIC/WACC0.3
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)-50.88%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%16.67%
EPS Next Y6.78%
EPS Next 2Y24.09%
EPS Next 3Y24.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%15.16%
Revenue Next Year2.79%
Revenue Next 2Y3.05%
Revenue Next 3Y4.33%
Revenue Next 5YN/A
EBIT growth 1Y-42.75%
EBIT growth 3Y-21.02%
EBIT growth 5Y-6.03%
EBIT Next Year85.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y227.09%
FCF growth 3Y-35.91%
FCF growth 5Y-17.1%
OCF growth 1Y1837.5%
OCF growth 3Y-20.06%
OCF growth 5Y-8.03%