VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
11.99 USD
+0.11 (+0.93%)
11.99 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VREX. VREX was compared to 190 industry peers in the Health Care Equipment & Supplies industry. VREX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VREX is valued quite cheap, while showing a decent growth score. This is a good combination!
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
VREX's Return On Assets of -12.34% is in line compared to the rest of the industry. VREX outperforms 56.84% of its industry peers.
VREX has a Return On Equity (-29.10%) which is in line with its industry peers.
VREX has a Return On Invested Capital of 5.07%. This is in the better half of the industry: VREX outperforms 76.84% 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 8.88%.
| 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
With a decent Operating Margin value of 7.00%, VREX is doing good in the industry, outperforming 73.68% of the companies in the same industry.
VREX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.06%, VREX is doing worse than 73.16% of the companies in the same industry.
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
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.
The debt/assets ratio for VREX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.90 indicates that VREX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VREX (1.90) 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.
The Debt to FCF ratio of VREX (10.24) is better than 73.68% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that VREX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, VREX is doing worse than 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.74
WACC6.87%
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 64.74% of its industry peers.
VREX has a Quick Ratio of 1.82. This is a normal value and indicates that VREX is financially healthy and should not expect problems in meeting its short term obligations.
VREX has a Quick ratio of 1.82. This is comparable to the rest of the industry: VREX outperforms 48.95% 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
The Revenue has decreased by -1.36% in the past year.
Measured over the past years, VREX shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
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.
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
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
The Price/Earnings ratio is 17.13, which indicates a rather expensive current valuation of VREX.
VREX's Price/Earnings ratio is rather cheap when compared to the industry. VREX is cheaper than 83.16% of the companies in the same industry.
VREX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.63, VREX is valued correctly.
Based on the Price/Forward Earnings ratio, VREX is valued cheaply inside the industry as 87.89% 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 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
VREX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VREX is cheaper than 90.53% of the companies in the same industry.
VREX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VREX is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 9.99 |
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)0.61
PEG (5Y)N/A
EPS Next 2Y22.09%
EPS Next 3Y23.27%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.99
+0.11 (+0.93%)
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 Change1.02%
Ins Owners1.66%
Ins Owner Change-0.41%
Market Cap497.58M
Revenue(TTM)821.40M
Net Income(TTM)-132500000
Analysts83.64
Price Target17.75 (48.04%)
Short Float %2.13%
Short Ratio2.81
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 | 17.13 | ||
| Fwd PE | 14.63 | ||
| P/S | 0.61 | ||
| P/FCF | 13.63 | ||
| P/OCF | 8.32 | ||
| P/B | 1.09 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 9.99 |
EPS(TTM)0.7
EY5.84%
EPS(NY)0.82
Fwd EY6.84%
FCF(TTM)0.88
FCFY7.34%
OCF(TTM)1.44
OCFY12.02%
SpS19.79
BVpS10.97
TBVpS5.83
PEG (NY)0.61
PEG (5Y)N/A
Graham Number13.15
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
ROICexgc growth 3Y-22.06%
ROICexgc 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 | 1.9 |
F-Score5
WACC6.87%
ROIC/WACC0.74
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 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 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%
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.