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 187 industry peers in the Health Care Equipment & Supplies industry. VREX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on VREX.
1. Profitability
1.1 Basic Checks
In the past year VREX was profitable.
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
With a decent Return On Assets value of -3.09%, VREX is doing good in the industry, outperforming 67.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of -7.64%, VREX is in the better half of the industry, outperforming 68.98% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.56%, VREX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
VREX had an Average Return On Invested Capital over the past 3 years of 5.22%. This is below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROIC | 3.56% |
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 (6.47%) is better than 73.26% of its industry peers.
In the last couple of years the Operating Margin of VREX has declined.
VREX has a Gross Margin of 33.74%. This is in the lower half of the industry: VREX underperforms 72.19% of its industry peers.
VREX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.47% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% |
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
Based on the Altman-Z score of 1.54, we must say that VREX is in the distress zone and has some risk of bankruptcy.
VREX has a Altman-Z score (1.54) which is in line with its industry peers.
VREX has a debt to FCF ratio of 14.97. This is a negative value and a sign of low solvency as VREX would need 14.97 years to pay back of all of its debts.
VREX has a Debt to FCF ratio of 14.97. This is in the better half of the industry: VREX outperforms 72.73% of its industry peers.
VREX has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
VREX has a worse Debt to Equity ratio (1.04) than 79.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 14.97 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.53
WACC6.66%
2.3 Liquidity
VREX has a Current Ratio of 4.05. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Current ratio of 4.05. This is in the better half of the industry: VREX outperforms 65.78% of its industry peers.
VREX has a Quick Ratio of 2.36. This indicates that VREX is financially healthy and has no problem in meeting its short term obligations.
VREX has a Quick ratio (2.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 |
3. Growth
3.1 Past
VREX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.54%.
The earnings per share for VREX have been decreasing by -15.81% on average. This is quite bad
The Revenue has decreased by -3.31% in the past 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)-36.54%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%62.5%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%3.25%
3.2 Future
VREX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.24% yearly.
Based on estimates for the next years, VREX will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y-15.15%
EPS Next 2Y17.54%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue Next Year-0.47%
Revenue Next 2Y1.94%
Revenue Next 3Y3.08%
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
A Price/Earnings ratio of 12.38 indicates a correct valuation of VREX.
Compared to the rest of the industry, the Price/Earnings ratio of VREX indicates a rather cheap valuation: VREX is cheaper than 89.84% of the companies listed in the same industry.
VREX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
VREX is valuated reasonably with a Price/Forward Earnings ratio of 10.75.
Based on the Price/Forward Earnings ratio, VREX is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
VREX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
VREX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VREX is cheaper than 94.12% of the companies in the same industry.
97.33% 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 | 8.85 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VREX's earnings are expected to grow with 22.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.54%
EPS Next 3Y22.24%
5. Dividend
5.1 Amount
No dividends for VREX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.17
-0.37 (-4.33%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change-0.13%
Ins Owners1.68%
Ins Owner Change7.95%
Market Cap339.06M
Analysts83.64
Price Target16.93 (107.22%)
Short Float %2.92%
Short Ratio2.33
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)84.18%
Min EPS beat(2)81.21%
Max EPS beat(2)87.15%
EPS beat(4)3
Avg EPS beat(4)63.06%
Min EPS beat(4)-29%
Max EPS beat(4)112.89%
EPS beat(8)5
Avg EPS beat(8)27.99%
EPS beat(12)9
Avg EPS beat(12)27.59%
EPS beat(16)12
Avg EPS beat(16)27.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-3.1%
Max Revenue beat(2)1.51%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-3.1%
Max Revenue beat(4)1.51%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.32%
Revenue beat(16)8
Avg Revenue beat(16)-0.24%
PT rev (1m)-21.7%
PT rev (3m)-20.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-79.23%
EPS NY rev (1m)-19.69%
EPS NY rev (3m)-20.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 10.75 | ||
| P/S | 0.41 | ||
| P/FCF | 8.85 | ||
| P/OCF | 5.65 | ||
| P/B | 0.62 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)0.66
EY8.08%
EPS(NY)0.76
Fwd EY9.3%
FCF(TTM)0.92
FCFY11.3%
OCF(TTM)1.45
OCFY17.7%
SpS19.94
BVpS13.25
TBVpS5.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.09% | ||
| ROE | -7.64% | ||
| ROCE | 4.5% | ||
| ROIC | 3.56% | ||
| ROICexc | 4.38% | ||
| ROICexgc | 6.4% | ||
| OM | 6.47% | ||
| PM (TTM) | N/A | ||
| GM | 33.74% | ||
| FCFM | 4.63% |
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-Score3
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 14.97 | ||
| Debt/EBITDA | 7.07 | ||
| Cap/Depr | 79.49% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 74.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.05 | ||
| Quick Ratio | 2.36 | ||
| Altman-Z | 1.54 |
F-Score3
WACC6.66%
ROIC/WACC0.53
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)-36.54%
EPS 3Y-24.54%
EPS 5Y-15.81%
EPS Q2Q%62.5%
EPS Next Y-15.15%
EPS Next 2Y17.54%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y-0.29%
Revenue growth 5Y0.77%
Sales Q2Q%3.25%
Revenue Next Year-0.47%
Revenue Next 2Y1.94%
Revenue Next 3Y3.08%
Revenue Next 5YN/A
EBIT growth 1Y-11.42%
EBIT growth 3Y-21.02%
EBIT growth 5Y-6.03%
EBIT Next Year93.17%
EBIT Next 3Y38.19%
EBIT Next 5YN/A
FCF growth 1Y192.37%
FCF growth 3Y-35.91%
FCF growth 5Y-17.1%
OCF growth 1Y57.89%
OCF growth 3Y-20.06%
OCF growth 5Y-8.03%