NasdaqGS:VREX

Stock Analysis Report

Executive Summary

Varex Imaging Corporation designs and manufactures X-ray imaging components.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Varex Imaging's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

NasdaqGS:VREX

1.5%

US Medical Equipment

0.8%

US Market


1 Year Return

-4.1%

NasdaqGS:VREX

9.7%

US Medical Equipment

1.9%

US Market

VREX underperformed the Medical Equipment industry which returned 9.6% over the past year.

VREX underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

VREXIndustryMarket
7 Day-4.1%1.5%0.8%
30 Day7.0%0.7%3.4%
90 Day-2.4%2.4%2.1%
1 Year-4.1%-4.1%10.6%9.7%4.2%1.9%
3 Yearn/a70.2%65.0%46.7%37.2%
5 Yearn/a136.0%109.1%62.3%44.5%

Price Volatility Vs. Market

How volatile is Varex Imaging's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Varex Imaging undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Varex Imaging's share price is below the future cash flow value, and at a moderate discount (> 20%).

Varex Imaging's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Varex Imaging is overvalued based on earnings compared to the US Medical Equipment industry average.

Varex Imaging is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Varex Imaging is poor value based on expected growth next year.


Price Based on Value of Assets

Varex Imaging is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Varex Imaging expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

32.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Varex Imaging's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Varex Imaging's earnings are expected to grow significantly at over 20% yearly.

Varex Imaging's revenue growth is positive but not above the United States of America market average.

Varex Imaging's earnings growth is expected to exceed the United States of America market average.

Varex Imaging's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Varex Imaging is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Varex Imaging performed over the past 5 years?

-38.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Varex Imaging's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Varex Imaging's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Varex Imaging's 1-year earnings growth is negative, it can't be compared to the US Medical Equipment industry average.


Return on Equity

Varex Imaging has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Varex Imaging used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Varex Imaging's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Varex Imaging's financial position?


Financial Position Analysis

Varex Imaging is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Varex Imaging's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Varex Imaging's level of debt (91.4%) compared to net worth is high (greater than 40%).

Unable to establish if Varex Imaging's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is Varex Imaging's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Varex Imaging's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Varex Imaging's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Varex Imaging has not reported any payouts.

Unable to verify if Varex Imaging's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Varex Imaging has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Varex Imaging's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Sunny Sanyal (55yo)

2.7yrs

Tenure

US$3,001,432

Compensation

Mr. Sunny S. Sanyal has been the Chief Executive Officer, President and Director of Varex Imaging Corporation since January 28, 2017. Mr. Sanyal served as Senior Vice President and President of Imaging Co ...


CEO Compensation Analysis

Sunny's remuneration is about average for companies of similar size in United States of America.

Sunny's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

The tenure for the Varex Imaging management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Varex Imaging board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Clarence Verhoef (64yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.03m
  • Howard Goldman

    Director of Investor & Public Relations

    • Tenure: 0yrs
  • Sunny Sanyal (55yo)

    CEO, President & Director

    • Tenure: 2.7yrs
    • Compensation: US$3.00m
  • Kim Honeysett (47yo)

    Senior VP

    • Tenure: 2.7yrs
    • Compensation: US$758.80k
  • Carl LaCasce (62yo)

    Senior VP & GM of Industrial Imaging

    • Tenure: 1.7yrs
    • Compensation: US$781.52k
  • Mark Jonaitis (56yo)

    Senior VP & GM of X-Ray Sources

    • Tenure: 2.7yrs
  • Chad Holman

    Chief Human Resources Officer & VP

    • Tenure: 0yrs
  • David Frick

    Vice President of Operations

    • Tenure: 0yrs
  • Kevin Yankton (52yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 2.7yrs
  • Brian Giambattista (60yo)

    Senior VP & GM of X-Ray Detectors

    • Tenure: 2.3yrs
    • Compensation: US$793.43k

Board Members

  • Christine Tsingos (60yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$256.98k
  • Ruediger Naumann-Etienne (72yo)

    Chairman

    • Tenure: 2.7yrs
    • Compensation: US$347.97k
  • Erich Reinhardt (73yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$251.98k
  • Walt Rosebrough (65yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$167.72k
  • Sunny Sanyal (55yo)

    CEO, President & Director

    • Tenure: 2.7yrs
    • Compensation: US$3.00m
  • Jay Kunkel (59yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$255.98k
  • Jocelyn Chertoff (63yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$242.58k

Company Information

Varex Imaging Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Varex Imaging Corporation
  • Ticker: VREX
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$1.107b
  • Shares outstanding: 38.34m
  • Website: https://www.vareximaging.com

Number of Employees


Location

  • Varex Imaging Corporation
  • 1678 South Pioneer Road
  • Salt Lake City
  • Utah
  • 84104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VREXNasdaqGS (Nasdaq Global Select)YesCommon ShareUSUSDJan 2017
VI4DB (Deutsche Boerse AG)YesCommon ShareDEEURJan 2017

Biography

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company operates in two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:59
End of Day Share Price2019/09/17 00:00
Earnings2019/06/28
Annual Earnings2018/09/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.