Varex Imaging
Market Cap
US$1.1b
Last Updated
2019/12/09 00:51 UTC
Data Sources
Company Financials +
Executive Summary
Varex Imaging Corporation designs and manufactures X-ray imaging components.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.3%
VREX
0.5%
US Medical Equipment
0.3%
US Market
1 Year Return
25.8%
VREX
24.7%
US Medical Equipment
18.5%
US Market
Return vs Industry: VREX matched the US Medical Equipment industry which returned 24.7% over the past year.
Return vs Market: VREX exceeded the US Market which returned 18.5% over the past year.
Shareholder returns
| VREX | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 0.5% | 0.3% |
| 30 Day | -6.7% | 4.9% | 1.5% |
| 90 Day | 2.4% | 6.1% | 5.7% |
| 1 Year | 25.8%25.8% | 25.7%24.7% | 21.1%18.5% |
| 3 Year | n/a | 92.9%87.2% | 45.9%36.4% |
| 5 Year | n/a | 125.4%100.9% | 71.4%52.5% |
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
1 week ago | Simply Wall St
Here's Why Varex Imaging (NASDAQ:VREX) Has A Meaningful Debt Burden3 weeks ago | Simply Wall St
Should You Be Tempted To Sell Varex Imaging Corporation (NASDAQ:VREX) Because Of Its P/E Ratio?1 month ago | Simply Wall St
Should You Think About Buying Varex Imaging Corporation (NASDAQ:VREX) Now?Valuation
Is Varex Imaging undervalued compared to its fair value and its price relative to the market?
21.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VREX ($30.27) is trading below our estimate of fair value ($38.67)
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 (69.7x) compared to the Medical Equipment industry average (46.7x).
PE vs Market: VREX is poor value based on its PE Ratio (69.7x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: VREX is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: VREX is good value based on its PB Ratio (2.6x) compared to the US Medical Equipment industry average (4.2x).
Next Steps
Future Growth
How is Varex Imaging forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
37.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VREX's forecast earnings growth (37.8% per year) is above the savings rate (1.7%).
Earnings vs Market: VREX's earnings (37.8% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VREX's revenue (2.3% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: VREX's revenue (2.3% 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 (13.6%).
Next Steps
Past Performance
How has Varex Imaging performed over the past 5 years?
-38.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VREX has a large one-off loss of $6.6M impacting its September 27 2019 financial results.
Growing Profit Margin: VREX's current net profit margins (2.1%) are lower than last year (3.6%).
Past Earnings Growth Analysis
Earnings Trend: VREX's earnings have declined by -38.9% 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 (-40%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.3%).
Return on Equity
High ROE: VREX's Return on Equity (3.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Varex Imaging's financial position?
Financial Position Analysis
Short Term Liabilities: VREX's short term assets ($440.3M) exceed its short term liabilities ($175.1M).
Long Term Liabilities: VREX's short term assets ($440.3M) exceed its long term liabilities ($405.9M).
Debt to Equity History and Analysis
Debt Level: VREX's debt to equity ratio (85.9%) 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 (17.1%).
Interest Coverage: VREX's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Inventory Level: VREX has a high level of physical assets or inventory.
Debt Coverage by Assets: VREX's 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 vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate VREX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate VREX's dividend yield against the top 25% of dividend payers, as the company has not reported any 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
What is the CEO of Varex Imaging's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Sunny Sanyal (55yo)
2.9yrs
Tenure
US$3,001,432
Compensation
Mr. Sunny S. Sanyal has been the Chief Executive Officer, President and Director of Varex Imaging Corporation since January 28, 2017. Mr. Sanyal served as Senior Vice President and President of Imaging Com ...
CEO Compensation Analysis
Compensation vs Market: Sunny's total compensation ($USD3.00M) is about average for companies of similar size in the US market ($USD2.63M).
Compensation vs Earnings: Sunny's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.9yrs
Average Tenure
56yo
Average Age
Experienced Management: VREX's management team is considered experienced (2.9 years average tenure).
Board Age and Tenure
2.9yrs
Average Tenure
63yo
Average Age
Experienced Board: VREX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Insider Trading
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.
Management Team
Clarence Verhoef (64yo)
Senior VP & CFO
- Tenure: 2.9yrs
- Compensation: US$1.03m
Howard Goldman
Director of Investor & Public Relations
- Tenure: 0yrs
Sunny Sanyal (55yo)
CEO, President & Director
- Tenure: 2.9yrs
- Compensation: US$3.00m
Kim Honeysett (47yo)
Senior VP
- Tenure: 2.9yrs
- Compensation: US$758.80k
Carl LaCasce (62yo)
Senior VP & GM of Industrial Imaging
- Tenure: 1.9yrs
- Compensation: US$781.52k
Mark Jonaitis (56yo)
Senior VP & GM of X-Ray Sources
- Tenure: 2.9yrs
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: 2.9yrs
Brian Giambattista (60yo)
Senior VP & GM of X-Ray Detectors
- Tenure: 2.6yrs
- Compensation: US$793.43k
Board Members
Christine Tsingos (60yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$256.98k
Rudi Naumann-Etienne (72yo)
Chairman
- Tenure: 2.9yrs
- Compensation: US$347.97k
Erich Reinhardt (73yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$251.98k
Walt Rosebrough (65yo)
Independent Director
- Tenure: 1.7yrs
- Compensation: US$167.72k
Sunny Sanyal (55yo)
CEO, President & Director
- Tenure: 2.9yrs
- Compensation: US$3.00m
Jay Kunkel (59yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$255.98k
Jocelyn Chertoff (63yo)
Independent Director
- Tenure: 2.7yrs
- 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$1.125b
- Shares outstanding: 38.37m
- Website: https://www.vareximaging.com
Number of Employees
Location
- Varex Imaging Corporation
- 1678 South Pioneer Road
- Salt Lake City
- Utah
- 84104
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VREX | NasdaqGS (Nasdaq Global Select) | Yes | Common Share | US | USD | Jan 2017 |
| VI4 | DB (Deutsche Boerse AG) | Yes | Common Share | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/09 00:51 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/09/27 |
| Annual Earnings | 2019/09/27 |
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.