Loading...

We've got a brand new version of Simply Wall St! Try it out

Varex Imaging

Nasdaq:VREX
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VREX
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Varex Imaging Corporation designs and manufactures X-ray imaging components. The last earnings update was 11 days ago. More info.


Add to Portfolio Compare Print
VREX Share Price and Events
7 Day Returns
1.6%
NasdaqGS:VREX
-0.6%
US Medical Equipment
-1%
US Market
1 Year Returns
-10.9%
NasdaqGS:VREX
14.5%
US Medical Equipment
-0.4%
US Market
VREX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Varex Imaging (VREX) 1.6% -13.6% -7.5% -10.9% - -
US Medical Equipment -0.6% 0.4% 10.1% 14.5% 61.8% 104.8%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • VREX underperformed the Medical Equipment industry which returned 14.5% over the past year.
  • VREX underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
VREX
Industry
5yr Volatility vs Market

VREX Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Varex Imaging to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Varex Imaging.

NasdaqGS:VREX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:VREX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.863 (1 + (1- 21%) (40.35%))
1.093
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.093 * 5.96%)
9.24%

Discounted Cash Flow Calculation for NasdaqGS:VREX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Varex Imaging is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:VREX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.24%)
2020 59.20 Analyst x2 54.19
2021 78.25 Analyst x2 65.57
2022 89.53 Est @ 14.41% 68.67
2023 99.29 Est @ 10.91% 69.72
2024 107.69 Est @ 8.45% 69.22
2025 114.94 Est @ 6.74% 67.63
2026 121.31 Est @ 5.54% 65.34
2027 127.00 Est @ 4.69% 62.62
2028 132.21 Est @ 4.1% 59.67
2029 137.10 Est @ 3.69% 56.64
Present value of next 10 years cash flows $639.26
NasdaqGS:VREX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $137.10 × (1 + 2.73%) ÷ (9.24% – 2.73%)
$2,162.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,162.65 ÷ (1 + 9.24%)10
$893.46
NasdaqGS:VREX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $639.26 + $893.46
$1,532.73
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,532.73 / 38.34
$39.98
NasdaqGS:VREX Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.98
Current discount Discount to share price of $26.50
= -1 x ($26.50 - $39.98) / $39.98
33.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Varex Imaging is available for.
Intrinsic value
34%
Share price is $26.5 vs Future cash flow value of $39.98
Current Discount Checks
For Varex Imaging to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Varex Imaging's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Varex Imaging's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:VREX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-28) in USD $0.19
NasdaqGS:VREX Share Price ** NasdaqGS (2019-08-16) in USD $26.5
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 40.88x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Varex Imaging.

NasdaqGS:VREX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:VREX Share Price ÷ EPS (both in USD)

= 26.5 ÷ 0.19

136.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Varex Imaging's expected growth come at a high price?
Raw Data
NasdaqGS:VREX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 136.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
29.5%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.32x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:VREX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 136.8x ÷ 29.5%

4.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Varex Imaging is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Varex Imaging's assets?
Raw Data
NasdaqGS:VREX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-28) in USD $11.33
NasdaqGS:VREX Share Price * NasdaqGS (2019-08-16) in USD $26.5
United States of America Medical Equipment Industry PB Ratio Median Figure of 186 Publicly-Listed Medical Equipment Companies 3.99x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:VREX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:VREX Share Price ÷ Book Value per Share (both in USD)

= 26.5 ÷ 11.33

2.34x

* Primary Listing of Varex Imaging.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Varex Imaging is good value based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess Varex Imaging's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Varex Imaging has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VREX Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Varex Imaging expected to grow at an attractive rate?
  • Varex Imaging's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Varex Imaging's earnings growth is expected to exceed the United States of America market average.
  • Varex Imaging's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:VREX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:VREX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 29.5%
NasdaqGS:VREX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2.6%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 22.5%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:VREX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:VREX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 825 66 1
2021-09-30 834 100 62 4
2020-09-30 808 81 50 5
2019-09-30 782 78 39 5
NasdaqGS:VREX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-28 783 68 7
2019-03-29 778 73 13
2018-12-28 783 65 19
2018-09-28 773 85 28
2018-06-29 784 82 42
2018-03-30 763 87 49
2017-12-29 717 96 52
2017-09-29 698 75 52
2017-06-30 655 80 59
2017-03-31 636 80 66
2016-12-30 631 87 66
2016-09-30 620 74 69
2016-07-01 608 85 62

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Varex Imaging's earnings are expected to grow significantly at over 20% yearly.
  • Varex Imaging's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:VREX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Varex Imaging Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:VREX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 1.67 1.67 1.67 1.00
2021-09-30 1.59 1.85 1.47 4.00
2020-09-30 1.29 1.50 1.05 4.00
2019-09-30 1.01 1.30 0.59 4.00
NasdaqGS:VREX Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-28 0.19
2019-03-29 0.33
2018-12-28 0.51
2018-09-28 0.73
2018-06-29 1.12
2018-03-30 1.30
2017-12-29 1.37
2017-09-29 1.37
2017-06-30 1.57
2017-03-31 1.75
2016-12-30 1.75
2016-09-30 1.83
2016-07-01 1.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Varex Imaging is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Varex Imaging's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Varex Imaging has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VREX Past Performance

  How has Varex Imaging performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Varex Imaging's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Varex Imaging's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Varex Imaging Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:VREX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-28 783.00 7.40 118.00 79.20
2019-03-29 777.50 12.70 119.00 78.80
2018-12-28 782.90 19.20 119.60 82.10
2018-09-28 773.40 27.50 117.00 83.00
2018-06-29 784.30 42.30 115.50 84.20
2018-03-30 763.30 49.10 109.80 81.40
2017-12-29 716.90 51.80 98.80 73.70
2017-09-29 698.10 51.60 97.50 67.30
2017-06-30 654.50 58.80 95.60 59.30
2017-03-31 635.70 65.70 89.70 55.60
2016-12-30 630.70 65.50 90.70 54.30
2016-09-30 620.10 68.50 85.80 53.50
2016-07-01 608.00 62.10 79.60 55.30
2015-10-02 632.30 80.00 72.70 50.40
2014-09-26 685.20 110.10 62.60 40.00
2013-09-27 669.80 109.60 61.70 35.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Varex Imaging has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Varex Imaging used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Varex Imaging's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Varex Imaging's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Varex Imaging has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VREX Health

 How is Varex Imaging's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Varex Imaging's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Varex Imaging's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Varex Imaging Company Filings, last reported 1 month ago.

NasdaqGS:VREX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-28 448.60 410.00 29.00
2019-03-29 446.00 346.10 32.70
2018-12-28 440.10 375.40 57.20
2018-09-28 439.40 389.80 54.10
2018-06-29 434.30 399.60 54.60
2018-03-30 424.30 417.10 56.60
2017-12-29 408.90 454.50 94.30
2017-09-29 390.20 483.90 83.30
2017-06-30 369.40 498.70 89.30
2017-03-31 353.80 202.30 79.60
2016-12-30 564.00 0.00 53.90
2016-09-30 536.30 0.00 36.50
2016-07-01 524.10 0.00 34.20
2015-10-02 495.60 0.00 20.60
2014-09-26 359.30 0.00 0.50
2013-09-27
  • 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).
X
Financial health checks
We assess Varex Imaging's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Varex Imaging has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VREX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Varex Imaging dividends.
If you bought $2,000 of Varex Imaging shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:VREX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:VREX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30
2021-09-30
2020-09-30
2019-09-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Varex Imaging's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Varex Imaging's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Varex Imaging afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Varex Imaging has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VREX Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sunny Sanyal
COMPENSATION $3,001,432
AGE 55
TENURE AS CEO 2.6 years
CEO Bio

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 Components Businesses at Varian Medical Systems, Inc. from February 2014 to January 28, 2017. Mr. Sanyal served as Chief Executive Officer at T-System, Inc., for Practice Management Associates, LLC from August 2010 to July 11, 2014. He guides T-System through an increasingly complex and competitive marketplace as it meets the evolving needs of hospital EDs and he drives strategy to improve the functionality and interoperability of its ED solutions - ultimately providing more value for customers. Mr. Sanyal has significant public company operational experience. Mr. Sanyal served as the President of Provider Technologies division in Atlanta of McKesson Corporation until June 2010. He has served for eight years as President of McKesson Automation division in Cranberry Township, Pa. He was responsible for leading McKesson's technology business for hospitals, health systems, home care providers and physicians at McKesson Provider Technologies. He served as Chief Operating Officer of McKesson Provider Technologies at McKesson Corporation from 2006 to 2010 and its Group President of Clinical Information Systems division from 2004 to 2006. Previously, he served with GE Healthcare, Accenture and IDX Systems Corporation. He served on the boards of HIMSS and the National Alliance for Healthcare IT (NAHIT). He has Extensive experience in medical device and healthcare industry. Mr. Sanyal received his MBA from Harvard Business School, his master's degree in Industrial Engineering from Louisiana State University and his bachelor's degree in Electrical Engineering from the University of Bombay.

CEO Compensation
  • Sunny's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sunny's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Varex Imaging management team in years:

2.6
Average Tenure
56
Average Age
  • The tenure for the Varex Imaging management team is about average.
Management Team

Sunny Sanyal

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
55
TENURE
2.6 yrs

Clarence Verhoef

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
64
TENURE
2.6 yrs

Kim Honeysett

TITLE
Senior VP
COMPENSATION
$759K
AGE
47
TENURE
2.6 yrs

Carl LaCasce

TITLE
Senior VP & GM of Industrial Imaging
COMPENSATION
$782K
AGE
62
TENURE
1.6 yrs

Brian Giambattista

TITLE
Senior VP & GM of X-Ray Detectors
COMPENSATION
$793K
AGE
60
TENURE
2.3 yrs

David Frick

TITLE
Vice President of Operations

Kevin Yankton

TITLE
Chief Accounting Officer & Corporate Controller
AGE
52
TENURE
2.6 yrs

Howard Goldman

TITLE
Director of Investor & Public Relations

Chad Holman

TITLE
Chief Human Resources Officer & VP

Mark Jonaitis

TITLE
Senior VP & GM of X-Ray Sources
AGE
56
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Varex Imaging board of directors in years:

2.6
Average Tenure
63
Average Age
  • The average tenure for the Varex Imaging board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ruediger Naumann-Etienne

TITLE
Chairman
COMPENSATION
$348K
AGE
72
TENURE
2.6 yrs

Sunny Sanyal

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
55
TENURE
2.6 yrs

Jay Kunkel

TITLE
Director
COMPENSATION
$256K
AGE
59
TENURE
2.6 yrs

Erich Reinhardt

TITLE
Director
COMPENSATION
$252K
AGE
73
TENURE
2.6 yrs

Christine Tsingos

TITLE
Director
COMPENSATION
$257K
AGE
60
TENURE
2.6 yrs

Jocelyn Chertoff

TITLE
Director
COMPENSATION
$243K
AGE
63
TENURE
2.3 yrs

Walt Rosebrough

TITLE
Director
COMPENSATION
$168K
AGE
65
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Varex Imaging's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Varex Imaging has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VREX News

Simply Wall St News

Investors Who Bought Varex Imaging (NASDAQ:VREX) Shares A Year Ago Are Now Down 18%

Investors in Varex Imaging Corporation (NASDAQ:VREX) have tasted that bitter downside in the last year, as the share price dropped 18%. … A Different Perspective Given that the market gained 7.1% in the last year, Varex Imaging shareholders might be miffed that they lost 18%. … Varex Imaging is not the only stock that insiders are buying.

Simply Wall St -

Does Market Volatility Impact Varex Imaging Corporation's (NASDAQ:VREX) Share Price?

If you're interested in Varex Imaging Corporation (NASDAQ:VREX), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … What this means for you: Since Varex Imaging tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Is There An Opportunity With Varex Imaging Corporation's (NASDAQ:VREX) 32% Undervaluation?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $41.15 $67.20 $81.75 $93.61 $103.88 $112.71 $120.33 $127.02 $133.00 $138.48 Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ 14.5% Est @ 10.97% Est @ 8.5% Est @ 6.77% Est @ 5.56% Est @ 4.71% Est @ 4.12% Present Value ($, Millions) Discounted @ 9.21% $37.68 $56.34 $62.76 $65.80 $66.86 $66.43 $64.94 $62.77 $60.18 $57.37 Present Value of 10-year Cash Flow (PVCF)= $601.14m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.2%. … NasdaqGS:VREX Intrinsic value, June 1st 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Read This Before Selling Varex Imaging Corporation (NASDAQ:VREX) Shares

So we'll take a look at whether insiders have been buying or selling shares in Varex Imaging Corporation (NASDAQ:VREX). … View our latest analysis for Varex Imaging The Last 12 Months Of Insider Transactions At Varex Imaging Over the last year, we can see that the biggest insider purchase was by Director Walter Rosebrough for US$284k worth of shares, at about US$28.39 per share. … Our data indicates that Varex Imaging insiders own about US$5.3m worth of shares (which is 0.5% of the company).

Simply Wall St -

Is Varex Imaging Corporation (NASDAQ:VREX) Struggling With Its 6.9% Return On Capital Employed?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

The Varex Imaging Share Price Is Down 12% So Some Shareholders Are Getting Worried

It is doubtless a positive to see that the Varex Imaging Corporation (NASDAQ:VREX) share price has gained some 32% in the last three months. … In fact, the price has declined 12% in a year, falling short of the returns you could get by investing in an index fund. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Simply Wall St -

What You Must Know About Varex Imaging Corporation's (NASDAQ:VREX) Beta Value

If you're interested in Varex Imaging Corporation (NASDAQ:VREX), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

Need To Know: Varex Imaging Corporation (NASDAQ:VREX) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Varex Imaging Corporation (NASDAQ:VREX). … We generally consider it a positive if insiders have been buying on market, even above the current price.

Simply Wall St -

Varex Imaging Corporation (NASDAQ:VREX) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.064 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Varex Imaging Corporation (NASDAQ:VREX) Have A Good P/E Ratio?

We'll look at Varex Imaging Corporation's (NASDAQ:VREX) P/E ratio and reflect on what it tells us about the company's share price. … Varex Imaging has a P/E ratio of 33.43, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

VREX Company Info

Description

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-ray imaging components comprising X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers, and buckys. This segment's products are used in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, oncology, cardiac, surgery, dental, and computer-aided detection. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital detectors, high voltage connectors, and image-processing software for use in security and industrial inspection applications, such as airport security, cargo screening at ports and borders, and nondestructive examination in various applications. Varex Imaging Corporation sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, Latin America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation is headquartered in Salt Lake City, Utah.

Details
Name: Varex Imaging Corporation
VREX
Exchange: NasdaqGS
Founded:
$1,016,039,229
38,341,103
Website: http://www.vareximaging.com
Address: Varex Imaging Corporation
1678 South Pioneer Road,
Salt Lake City,
Utah, 84104,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS VREX Common Share Nasdaq Global Select US USD 30. Jan 2017
DB VI4 Common Share Deutsche Boerse AG DE EUR 30. Jan 2017
Number of employees
Current staff
Staff numbers
2,000
Varex Imaging employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 00:52
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/12
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/28
Last annual earnings reported: 2018/09/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.