Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. More Details
No risks detected for VAR from our risk checks.
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Varian Medical Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VAR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 0% a week.
Volatility Over Time: VAR's weekly volatility (0%) has been stable over the past year.
7 Day Return
US Medical Equipment
1 Year Return
US Medical Equipment
Return vs Industry: VAR exceeded the US Medical Equipment industry which returned 41.8% over the past year.
Return vs Market: VAR exceeded the US Market which returned 57.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Varian Medical Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StVarian Medical Systems, Inc. (NYSE:VAR) On An Uptrend: Could Fundamentals Be Driving The Stock?
3 months ago | Simply Wall StDid You Participate In Any Of Varian Medical Systems' (NYSE:VAR) Fantastic 154% Return ?
6 months ago | Simply Wall StVarian Medical Systems (NYSE:VAR) Seems To Use Debt Quite Sensibly
Is Varian Medical Systems undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VAR ($177.07) is trading above our estimate of fair value ($145.36)
Significantly Below Fair Value: VAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VAR is poor value based on its PE Ratio (58.1x) compared to the US Medical Equipment industry average (50.8x).
PE vs Market: VAR is poor value based on its PE Ratio (58.1x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: VAR is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: VAR is overvalued based on its PB Ratio (7.3x) compared to the US Medical Equipment industry average (5.1x).
How is Varian Medical Systems forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VAR's forecast earnings growth (24.1% per year) is above the savings rate (2%).
Earnings vs Market: VAR's earnings (24.1% per year) are forecast to grow faster than the US market (18.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VAR's revenue (11.1% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: VAR's revenue (11.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VAR's Return on Equity is forecast to be low in 3 years time (18.7%).
How has Varian Medical Systems performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VAR has high quality earnings.
Growing Profit Margin: VAR's current net profit margins (8.9%) are higher than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: VAR's earnings have declined by 2.8% per year over the past 5 years.
Accelerating Growth: VAR's earnings growth over the past year (0.2%) exceeds its 5-year average (-2.8% per year).
Earnings vs Industry: VAR earnings growth over the past year (0.2%) underperformed the Medical Equipment industry 10.1%.
Return on Equity
High ROE: VAR's Return on Equity (12.3%) is considered low.
How is Varian Medical Systems's financial position?
Financial Position Analysis
Short Term Liabilities: VAR's short term assets ($2.6B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: VAR's short term assets ($2.6B) exceed its long term liabilities ($533.4M).
Debt to Equity History and Analysis
Debt Level: VAR's debt to equity ratio (9.3%) is considered satisfactory.
Reducing Debt: VAR's debt to equity ratio has reduced from 44.4% to 9.3% over the past 5 years.
Debt Coverage: VAR's debt is well covered by operating cash flow (244.2%).
Interest Coverage: VAR's interest payments on its debt are well covered by EBIT (1062.5x coverage).
What is Varian Medical Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate VAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate VAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VAR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VAR's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dow Wilson (61 yo)
Mr. Dow R. Wilson has been the Chief Executive Officer of Varian Medical Systems, Inc. since September 29, 2012 and served as its President from September 29, 2012 to October 5, 2020. Mr. Wilson has been a...
CEO Compensation Analysis
Compensation vs Market: Dow's total compensation ($USD9.80M) is about average for companies of similar size in the US market ($USD11.02M).
Compensation vs Earnings: Dow's compensation has been consistent with company performance over the past year.
Experienced Management: VAR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Experienced Board: VAR's board of directors are considered experienced (4.4 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.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Varian Medical Systems, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Varian Medical Systems, Inc.
- Ticker: VAR
- Exchange: NYSE
- Founded: 1948
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: US$16.118b
- Shares outstanding: 91.84m
- Website: https://www.varian.com
Number of Employees
- Varian Medical Systems, Inc.
- 3100 Hansen Way
- Palo Alto
- United States
Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through Oncology System...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/15 22:32|
|End of Day Share Price||2021/04/14 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.