Varex Imaging Corporation designs and manufactures X-ray imaging components.
Fair value with moderate growth potential.
Share Price & News
How has Varex Imaging's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VREX's share price has been volatile over the past 3 months.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: VREX underperformed the US Medical Equipment industry which returned 14.8% over the past year.
Return vs Market: VREX underperformed the US Market which returned 15.8% over the past year.
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
2 months ago | Simply Wall StWhy Varex Imaging Corporation’s (NASDAQ:VREX) Return On Capital Employed Might Be A Concern
8 months ago | Simply Wall StHere's Why Varex Imaging (NASDAQ:VREX) Has A Meaningful Debt Burden
8 months ago | Simply Wall StShould You Be Tempted To Sell Varex Imaging Corporation (NASDAQ:VREX) Because Of Its P/E Ratio?
Is Varex Imaging undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VREX ($16.38) is trading below our estimate of fair value ($28.71)
Significantly Below Fair Value: VREX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VREX is poor value based on its PE Ratio (179.7x) compared to the US Medical Equipment industry average (53.2x).
PE vs Market: VREX is poor value based on its PE Ratio (179.7x) compared to the US market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: VREX is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: VREX is good value based on its PB Ratio (1.4x) compared to the US Medical Equipment industry average (4x).
How is Varex Imaging forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VREX's forecast earnings growth (114.1% per year) is above the savings rate (2.2%).
Earnings vs Market: VREX's earnings (114.1% per year) are forecast to grow faster than the US market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VREX's revenue (2.2% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: VREX's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VREX's Return on Equity is forecast to be low in 3 years time (9.7%).
How has Varex Imaging performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VREX has a large one-off loss of $13.6M impacting its April 3 2020 financial results.
Growing Profit Margin: VREX's current net profit margins (0.4%) are lower than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: VREX's earnings have declined by 45.3% per year over the past 5 years.
Accelerating Growth: VREX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VREX had negative earnings growth (-71.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (-0.7%).
Return on Equity
High ROE: VREX's Return on Equity (0.8%) is considered low.
How is Varex Imaging's financial position?
Financial Position Analysis
Short Term Liabilities: VREX's short term assets ($454.0M) exceed its short term liabilities ($198.1M).
Long Term Liabilities: VREX's short term assets ($454.0M) exceed its long term liabilities ($419.1M).
Debt to Equity History and Analysis
Debt Level: VREX's debt to equity ratio (83.2%) is considered high.
Reducing Debt: Insufficient data to determine if VREX's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: VREX's debt is not well covered by operating cash flow (16.3%).
Interest Coverage: VREX's interest payments on its debt are not well covered by EBIT (2x coverage).
What is Varex Imaging current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VREX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VREX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VREX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VREX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VREX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sunny Sanyal (56 yo)
Mr. Sunny S. Sanyal has been the Chief Executive Officer, President and Director of Varex Imaging Corporation since January 28, 2017. Mr. Sanyal served as Senior Vice President and President of Imaging Com ...
CEO Compensation Analysis
Compensation vs Market: Sunny's total compensation ($USD3.17M) is about average for companies of similar size in the US market ($USD3.05M).
Compensation vs Earnings: Sunny's compensation has been consistent with company performance over the past year.
|Senior VP||3.58yrs||US$832.79k||0.011% |
|Senior VP & GM of X-Ray Sources||3.58yrs||US$777.66k||0.10% |
|Senior VP & GM of X-Ray Detectors||3.25yrs||US$858.98k||no data|
|Chief Financial Officer||0.083yr||no data||no data|
|Vice President of Operations||no data||no data||no data|
|Corporate Controller & Chief Accounting Officer||3.58yrs||no data||no data|
|Director of Investor & Public Relations||no data||no data||no data|
|Chief Human Resources Officer & VP||no data||no data||no data|
|Senior VP & GM of Industrial Imaging||2.58yrs||US$781.52k||no data|
|VP & MD for China||2.42yrs||no data||no data|
|Senior Vice President of Medical Global Sales & Marketing||2.58yrs||no data||no data|
Experienced Management: VREX's management team is considered experienced (3.3 years average tenure).
|Independent Director||3.58yrs||US$259.48k||0.013% |
|Independent Chairman of the Board||3.58yrs||US$347.97k||0.059% |
|Independent Director||3.58yrs||US$253.48k||0.046% |
|Independent Director||2.33yrs||US$244.98k||0.036% |
|Independent Director||3.58yrs||US$253.48k||0.013% |
|Independent Director||3.33yrs||US$239.98k||0.012% |
Experienced Board: VREX's board of directors are considered experienced (3.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Varex Imaging Corporation's company bio, employee growth, exchange listings and data sources
- Name: Varex Imaging Corporation
- Ticker: VREX
- Exchange: NasdaqGS
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$638.059m
- Shares outstanding: 38.95m
- Website: https://www.vareximaging.com
Number of Employees
- Varex Imaging Corporation
- 1678 South Pioneer Road
- Salt Lake City
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|VREX||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Jan 2017|
|VI4||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jan 2017|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/09 00:14|
|End of Day Share Price||2020/08/07 00:00|
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.