VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
11.92 USD
-0.1 (-0.83%)
11.92 USD
0 (0%)
Overall VREX gets a fundamental rating of 4 out of 10. We evaluated VREX against 188 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. 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.
The reported net income has been mixed in the past 5 years: VREX reported negative net income in multiple years.
In the past 5 years VREX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -12.34%, VREX perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
With a Return On Equity value of -29.10%, VREX perfoms like the industry average, outperforming 56.38% of the companies in the same industry.
VREX has a better Return On Invested Capital (5.03%) than 76.60% of its industry peers.
VREX had an Average Return On Invested Capital over the past 3 years of 5.21%. This is below the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.34% | ||
| ROE | -29.1% | ||
| ROIC | 5.03% |
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
With a decent Operating Margin value of 6.94%, VREX is doing good in the industry, outperforming 72.34% of the companies in the same industry.
VREX's Operating Margin has declined in the last couple of years.
VREX has a worse Gross Margin (34.06%) than 73.40% of its industry peers.
VREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.94% | ||
| PM (TTM) | N/A | ||
| GM | 34.06% |
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.
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 1.89 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
VREX has a Altman-Z score (1.89) which is comparable to the rest of the industry.
The Debt to FCF ratio of VREX is 10.11, which is on the high side as it means it would take VREX, 10.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.11, VREX is in the better half of the industry, outperforming 71.81% 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.
With a Debt to Equity ratio value of 0.82, VREX is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.72
WACC6.96%
2.3 Liquidity
VREX has a Current Ratio of 3.50. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Current ratio of 3.50. This is in the better half of the industry: VREX outperforms 63.83% of its industry peers.
A Quick Ratio of 1.81 indicates that VREX should not have too much problems paying its short term obligations.
The Quick ratio of VREX (1.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.5 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The earnings per share for VREX have decreased strongly by -13.58% in the last year.
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.
The Revenue has decreased by -1.36% in the past 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.
Based on estimates for the next years, VREX will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
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
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
With a Price/Earnings ratio of 17.03, VREX is valued on the expensive side.
84.57% of the companies in the same industry are more expensive than VREX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, VREX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.54, VREX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 85.64% of the companies listed in the same industry.
VREX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VREX is valued cheaply inside the industry as 89.89% of the companies are valued more expensively.
93.09% 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 | 13.37 | ||
| EV/EBITDA | 9.97 |
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.
VREX's earnings are expected to grow with 23.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
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 |
11.92
-0.1 (-0.83%)
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 Change2.41%
Ins Owners1.66%
Ins Owner Change-1.48%
Market Cap494.68M
Revenue(TTM)821.40M
Net Income(TTM)-132.40M
Analysts83.64
Price Target18.16 (52.35%)
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)50.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.54 | ||
| P/S | 0.6 | ||
| P/FCF | 13.37 | ||
| P/OCF | 8.24 | ||
| P/B | 1.09 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)0.7
EY5.87%
EPS(NY)0.82
Fwd EY6.88%
FCF(TTM)0.89
FCFY7.48%
OCF(TTM)1.45
OCFY12.13%
SpS19.79
BVpS10.96
TBVpS5.81
PEG (NY)0.61
PEG (5Y)N/A
Graham Number13.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.34% | ||
| ROE | -29.1% | ||
| ROCE | 6.36% | ||
| ROIC | 5.03% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 6.76% | ||
| OM | 6.94% | ||
| PM (TTM) | N/A | ||
| GM | 34.06% | ||
| FCFM | 4.5% |
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
ROICexgc growth 3Y-22.2%
ROICexgc 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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.11 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 85.5% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | 71.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.5 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 1.89 |
F-Score5
WACC6.96%
ROIC/WACC0.72
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 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 1Y25.27%
EBIT growth 3Y-21.16%
EBIT growth 5Y-6.13%
EBIT Next Year118.8%
EBIT Next 3Y36.54%
EBIT Next 5YN/A
FCF growth 1Y-30.58%
FCF growth 3Y-36.33%
FCF growth 5Y-17.43%
OCF growth 1Y-23.47%
OCF growth 3Y-20.23%
OCF growth 5Y-8.15%
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.