NasdaqGS:VREX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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

Stable Share Price: VREX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

VREX

0.1%

US Medical Equipment

-0.8%

US Market


1 Year Return

-50.7%

VREX

25.7%

US Medical Equipment

18.0%

US Market

Return vs Industry: VREX underperformed the US Medical Equipment industry which returned 23.8% over the past year.

Return vs Market: VREX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

VREXIndustryMarket
7 Day5.2%0.1%-0.8%
30 Day21.0%7.9%6.8%
90 Day-11.3%8.3%8.9%
1 Year-50.7%-50.7%26.7%25.7%20.7%18.0%
3 Year-57.6%-57.6%76.7%72.0%41.5%32.1%
5 Yearn/a146.4%127.1%84.6%63.8%

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 compared to its fair value and its price relative to the market?

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VREX ($14.33) is trading below our estimate of fair value ($15.39)

Significantly Below Fair Value: VREX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VREX is unprofitable, so we can't compare its PE Ratio to the US Medical Equipment industry average.

PE vs Market: VREX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VREX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VREX is good value based on its PB Ratio (1.2x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

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

74.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VREX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VREX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VREX's is expected to become profitable in the next 3 years.

Revenue vs Market: VREX's revenue (0.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: VREX's revenue (0.4% 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 (4.8%).


Next Steps

Past Performance

How has Varex Imaging performed over the past 5 years?

-50.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VREX is currently unprofitable.

Growing Profit Margin: VREX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VREX is unprofitable, and losses have increased over the past 5 years at a rate of 50% per year.

Accelerating Growth: Unable to compare VREX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VREX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2.5%).


Return on Equity

High ROE: VREX has a negative Return on Equity (-4.78%), as it is currently unprofitable.


Next Steps

Financial Health

How is Varex Imaging's financial position?


Financial Position Analysis

Short Term Liabilities: VREX's short term assets ($498.9M) exceed its short term liabilities ($191.9M).

Long Term Liabilities: VREX's short term assets ($498.9M) exceed its long term liabilities ($448.7M).


Debt to Equity History and Analysis

Debt Level: VREX's debt to equity ratio (87.4%) 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 (11.4%).

Interest Coverage: VREX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Sunny Sanyal (56 yo)

3.75yrs

Tenure

US$3,165,121

Compensation

Mr. Sunny S. Sanyal serves as Deputy Chairman at MeVis Medical Solutions AG since 2020. He has been the Chief Executive Officer, President and Director of Varex Imaging Corporation since January 28, 2017. ...


CEO Compensation Analysis

Compensation vs Market: Sunny's total compensation ($USD3.17M) is above average for companies of similar size in the US market ($USD1.93M).

Compensation vs Earnings: Sunny's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sunny Sanyal
President3.75yrsUS$3.17m0.14%
$ 804.5k
Kimberley Honeysett
Senior VP3.75yrsUS$832.79k0.011%
$ 60.8k
Mark Jonaitis
Senior VP & GM of X-Ray Sources3.75yrsUS$777.66k0.10%
$ 580.4k
Brian Giambattista
Senior VP & GM of X-Ray Detectors3.42yrsUS$858.98kno data
Shubham Maheshwari
Chief Financial Officer0.25yrno datano data
Kevin Yankton
Corporate Controller & Chief Accounting Officer3.75yrsno data0%
$ 0
Howard Goldman
Director of Investor & Public Relationsno datano datano data
Chad Holman
Chief Human Resources Officer & VPno datano datano data
Carl LaCasce
Senior VP & GM of Industrial Imaging2.75yrsUS$781.52kno data
Shaohua Liang
VP & MD for China2.58yrsno datano data
Andrew Hartmann
Senior Vice President of Medical Global Sales & Marketing2.75yrsno datano data
Matthew Lowell
Vice President of Financeno datano datano data

3.4yrs

Average Tenure

56yo

Average Age

Experienced Management: VREX's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunny Sanyal
President3.75yrsUS$3.17m0.14%
$ 804.5k
Christine Tsingos
Independent Director3.75yrsUS$259.48k0.013%
$ 73.8k
Timothy Guertin
Director0.083yrno datano data
Ruediger Naumann-Etienne
Independent Chairman of the Board3.75yrsUS$347.97k0.059%
$ 328.3k
Erich Reinhardt
Independent Director3.75yrsUS$253.48k0.046%
$ 259.1k
Walter Rosebrough
Independent Director2.5yrsUS$244.98k0.036%
$ 200.6k
Jay Kunkel
Independent Director3.75yrsUS$253.48k0.013%
$ 73.8k
Jocelyn Chertoff
Independent Director3.5yrsUS$239.98k0.012%
$ 67.2k

3.8yrs

Average Tenure

65yo

Average Age

Experienced Board: VREX's board of directors are considered experienced (3.8 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$559.686m
  • Shares outstanding: 39.06m
  • 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 SharesUSUSDJan 2017
VI4DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 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 Analysis2020/10/23 00:44
End of Day Share Price2020/10/22 00:00
Earnings2020/07/03
Annual Earnings2019/09/27


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.