VAREX IMAGING CORP (VREX) Stock Fundamental Analysis
USA - NASDAQ:VREX - US92214X1063 - Common Stock
11.97 USD
+0.08 (+0.67%)
11.97 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VREX. VREX was compared to 189 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. VREX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
VREX had positive earnings in the past year.
In the past year VREX had a positive cash flow from operations.
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
VREX has a Return On Assets of -12.34%. This is comparable to the rest of the industry: VREX outperforms 57.14% 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 76.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VREX is below the industry average of 9.17%.
| 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 73.55% of the companies in the same industry.
In the last couple of years the Operating Margin of VREX has declined.
VREX has a Gross Margin of 34.06%. This is in the lower half of the industry: VREX underperforms 73.02% 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.
VREX has more shares outstanding than it did 5 years ago.
VREX has a worse debt/assets ratio than last year.
2.2 Solvency
VREX has an Altman-Z score of 1.90. This is not the best score and indicates that VREX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.90, VREX perfoms like the industry average, outperforming 59.79% of the companies in the same 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.
VREX has a Debt to FCF ratio of 10.24. This is in the better half of the industry: VREX outperforms 73.02% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that VREX is somewhat dependend on debt financing.
VREX has a worse Debt to Equity ratio (0.82) than 72.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.73
WACC6.92%
2.3 Liquidity
A Current Ratio of 3.51 indicates that VREX has no problem at all paying its short term obligations.
VREX's Current ratio of 3.51 is fine compared to the rest of the industry. VREX outperforms 64.02% of its industry peers.
A Quick Ratio of 1.82 indicates that VREX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.82, VREX perfoms like the industry average, outperforming 48.68% 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%.
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.
VREX shows a decrease in Revenue. In the last year, the revenue decreased by -1.36%.
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
The Earnings Per Share is expected to grow by 23.27% on average over the next years. This is a very strong growth
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 17.10, VREX is valued on the expensive side.
Based on the Price/Earnings ratio, VREX is valued cheaply inside the industry as 83.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VREX to the average of the S&P500 Index (26.06), we can say VREX is valued slightly cheaper.
VREX is valuated correctly with a Price/Forward Earnings ratio of 14.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 87.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VREX to the average of the S&P500 Index (32.73), we can say VREX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.1 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
VREX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VREX is cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VREX is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| EV/EBITDA | 9.98 |
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
VREX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.97
+0.08 (+0.67%)
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 Change0.94%
Ins Owners1.66%
Ins Owner Change-0.41%
Market Cap496.75M
Revenue(TTM)821.40M
Net Income(TTM)-132.50M
Analysts83.64
Price Target18.16 (51.71%)
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)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 | 17.1 | ||
| Fwd PE | 14.6 | ||
| P/S | 0.6 | ||
| P/FCF | 13.61 | ||
| P/OCF | 8.31 | ||
| P/B | 1.09 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)0.7
EY5.85%
EPS(NY)0.82
Fwd EY6.85%
FCF(TTM)0.88
FCFY7.35%
OCF(TTM)1.44
OCFY12.04%
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
WACC6.92%
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 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.