VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
11.63 USD
+0.15 (+1.31%)
11.63 USD
0 (0%)
Overall VREX gets a fundamental rating of 4 out of 10. We evaluated VREX against 191 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on VREX.
1. Profitability
1.1 Basic Checks
VREX had positive earnings in the past year.
VREX had a positive operating cash flow in the past year.
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 58.64% 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 56.54% of the companies in the same industry.
VREX has a better Return On Invested Capital (5.07%) than 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 8.46%.
| 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 73.82% of its industry peers.
In the last couple of years the Operating Margin of VREX has declined.
VREX's Gross Margin of 34.06% is on the low side compared to the rest of the industry. VREX is outperformed by 73.82% 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 | 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.
Compared to 5 years ago, VREX has more shares outstanding
Compared to 1 year ago, VREX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.88 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VREX (1.88) is better than 60.21% of its industry peers.
VREX has a debt to FCF ratio of 10.24. This is a negative value and a sign of low solvency as VREX would need 10.24 years to pay back of 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.
The Debt to Equity ratio of VREX (0.82) is worse than 73.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.88 |
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's Current ratio of 3.51 is fine compared to the rest of the industry. VREX outperforms 64.40% of its industry peers.
A Quick Ratio of 1.82 indicates that VREX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.82, VREX is in line with its industry, outperforming 49.74% of the companies in the same industry.
| 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.
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
VREX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.27% yearly.
The Revenue is expected to grow by 3.83% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 16.61, which indicates a correct valuation of VREX.
Based on the Price/Earnings ratio, VREX is valued cheaper than 83.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. VREX is valued slightly cheaper when compared to this.
VREX is valuated correctly with a Price/Forward Earnings ratio of 14.39.
86.91% of the companies in the same industry are more expensive than VREX, based on the Price/Forward Earnings ratio.
VREX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VREX is valued cheaply inside the industry as 90.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VREX is valued cheaply inside the industry as 94.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 9.81 |
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)0.59
PEG (5Y)N/A
EPS Next 2Y21.23%
EPS Next 3Y23.27%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.63
+0.15 (+1.31%)
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 Cap482.65M
Analysts83.64
Price Target17.75 (52.62%)
Short Float %2.29%
Short Ratio2.29
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)4.82%
PT rev (3m)4.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)87.18%
EPS NY rev (1m)50.82%
EPS NY rev (3m)21.12%
Revenue NQ rev (1m)2.35%
Revenue NQ rev (3m)10.78%
Revenue NY rev (1m)4.25%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 14.39 | ||
| P/S | 0.59 | ||
| P/FCF | 13.22 | ||
| P/OCF | 8.07 | ||
| P/B | 1.06 | ||
| P/tB | 2 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)0.7
EY6.02%
EPS(NY)0.81
Fwd EY6.95%
FCF(TTM)0.88
FCFY7.56%
OCF(TTM)1.44
OCFY12.39%
SpS19.79
BVpS10.97
TBVpS5.83
PEG (NY)0.59
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 | 1.88 |
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 2Y21.23%
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 Year93.17%
EBIT Next 3Y38.19%
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%