NYSE:VAR

Stock Analysis Report

Varian Medical Systems

Executive Summary

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

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


Market Performance


7 Day Return

-1.8%

NYSE:VAR

0.9%

US Medical Equipment

-1.2%

US Market


1 Year Return

14.2%

NYSE:VAR

14.6%

US Medical Equipment

3.3%

US Market

VAR matched the Medical Equipment industry (15.1%) over the past year.

VAR outperformed the Market in United States of America which returned 3.4% over the past year.


Share holder returns

VARIndustryMarket
7 Day-1.8%0.9%-1.2%
30 Day-3.2%1.0%0.8%
90 Day-0.08%12.0%0.9%
1 Year14.2%14.2%15.6%14.6%5.6%3.3%
3 Year72.7%53.3%69.4%64.0%45.4%35.9%
5 Year79.7%59.4%131.3%104.1%59.4%41.7%

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

Valuation

Is Varian Medical Systems undervalued based on future cash flows and its price relative to the stock market?

31.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Varian Medical Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Varian Medical Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Varian Medical Systems is good value based on earnings compared to the US Medical Equipment industry average.

Varian Medical Systems is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Varian Medical Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Varian Medical Systems is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Varian Medical Systems expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Varian Medical Systems's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

Varian Medical Systems's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).

Varian Medical Systems's revenue growth is expected to exceed the United States of America market average.

Varian Medical Systems's earnings growth is positive but not above the United States of America market average.

Varian Medical Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Varian Medical Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Varian Medical Systems performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Varian Medical Systems's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Varian Medical Systems's 1-year earnings growth exceeds its 5-year average (248.8% vs -16%)

Varian Medical Systems's earnings growth has exceeded the US Medical Equipment industry average in the past year (248.8% vs 31.9%).


Return on Equity

Varian Medical Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Varian Medical Systems used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Varian Medical Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Varian Medical Systems's financial position?


Financial Position Analysis

Varian Medical Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Varian Medical Systems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Varian Medical Systems has no debt.

Varian Medical Systems has no debt compared to 5 years ago when it was 27.9%.

Varian Medical Systems has no debt, it does not need to be covered by operating cash flow.

Varian Medical Systems has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Varian Medical Systems has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Varian Medical Systems's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Varian Medical Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Varian Medical Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Varian Medical Systems has not reported any payouts.

Unable to verify if Varian Medical Systems's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Varian Medical Systems has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Varian Medical Systems's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Varian Medical Systems's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Dow Wilson (60yo)

6.8yrs

Tenure

US$10,276,439

Compensation

Mr. Dow R. Wilson has been the Chief Executive Officer and President of Varian Medical Systems, Inc. since September 29, 2012. Mr. Wilson has been a Director of Agilent Technologies, Inc. since March 20, 2 ...


CEO Compensation Analysis

Dow's remuneration is about average for companies of similar size in United States of America.

Dow's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

The tenure for the Varian Medical Systems management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

The tenure for the Varian Medical Systems board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUS$25,49317 Jul 19
John Kuo
EntityIndividual
Role
Senior VP
Shares465
Max PriceUS$135.22
SellUS$413,86917 Jul 19
Timothy Guertin
EntityIndividual
Role
Member of the Board of Directors
Shares5,651
Max PriceUS$135.22
SellUS$2,025,07715 Jul 19
Gary Bischoping
EntityIndividual
Role
Senior VP of Finance & CFO
Shares56,232
Max PriceUS$136.28
SellUS$53,92410 Jul 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares1,242
Max PriceUS$138.65
SellUS$23,71719 Jun 19
John Kuo
EntityIndividual
Role
Senior VP
Shares465
Max PriceUS$131.40
SellUS$45,87012 Jun 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares1,242
Max PriceUS$131.51
SellUS$127,11722 May 19
Gary Bischoping
EntityIndividual
Role
Senior VP of Finance & CFO
Shares974
Max PriceUS$130.51
SellUS$23,11617 May 19
John Kuo
EntityIndividual
Role
Senior VP
Shares465
Max PriceUS$130.35
SellUS$36,68114 May 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares699
Max PriceUS$133.28
SellUS$11,79010 May 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares544
Max PriceUS$134.94
SellUS$561,21317 Apr 19
John Kuo
EntityIndividual
Role
Senior VP
Shares11,278
Max PriceUS$142.00
SellUS$57,58310 Apr 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares1,242
Max PriceUS$141.48
SellUS$3,041,81602 Apr 19
Dow Wilson
EntityIndividual
Role
President
Member of the Board of Directors
Shares45,050
Max PriceUS$141.73
SellUS$41,55202 Apr 19
Christopher Toth
EntityIndividual
Shares1,400
Max PriceUS$142.50
SellUS$107,20025 Mar 19
Christopher Toth
EntityIndividual
Shares2,611
Max PriceUS$140.00
SellUS$222,17620 Mar 19
Christopher Toth
EntityIndividual
Shares3,498
Max PriceUS$136.68
SellUS$47,72713 Mar 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares1,243
Max PriceUS$133.94
SellUS$133,00521 Feb 19
John Kuo
EntityIndividual
Role
Senior VP
Shares1,002
Max PriceUS$132.74
SellUS$83,71021 Feb 19
Gary Bischoping
EntityIndividual
Role
Senior VP of Finance & CFO
Shares633
Max PriceUS$132.74
SellUS$564,13120 Feb 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares4,269
Max PriceUS$132.74
SellUS$290,85420 Feb 19
Magnus Momsen
EntityIndividual
Role
Senior VP
Shares2,204
Max PriceUS$132.74
SellUS$415,60920 Feb 19
Dow Wilson
EntityIndividual
Role
President
Member of the Board of Directors
Shares9,024
Max PriceUS$132.74
SellUS$161,41220 Feb 19
Christopher Toth
EntityIndividual
Shares1,216
Max PriceUS$132.74
SellUS$56,63115 Feb 19
Jean-Luc Butel
EntityIndividual
Role
Member of the Board of Directors
Shares432
Max PriceUS$131.09
SellUS$71,20615 Feb 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares1,088
Max PriceUS$132.85
SellUS$35,68614 Feb 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares699
Max PriceUS$131.45
SellUS$112,60112 Feb 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares6,517
Max PriceUS$130.59
SellUS$1,152,41731 Jan 19
Kolleen Kennedy
EntityIndividual
Role
Chief Growth Officer & President of Proton Solutions
Shares19,580
Max PriceUS$131.34
SellUS$411,84531 Jan 19
Robert Eckert
EntityIndividual
Role
Chairman of the Board
Shares5,651
Max PriceUS$130.15
SellUS$101,09807 Jan 19
Magnus Momsen
EntityIndividual
Role
Senior VP
Shares2,800
Max PriceUS$111.64
SellUS$57,92016 Nov 18
John Kuo
EntityIndividual
Role
Senior VP
Shares1,324
Max PriceUS$116.51
SellUS$14,68831 Oct 18
John Kuo
EntityIndividual
Role
Senior VP
Shares465
Max PriceUS$111.99
SellUS$116,89231 Oct 18
Magnus Momsen
EntityIndividual
Role
Senior VP
Shares2,700
Max PriceUS$112.15
SellUS$32,88017 Oct 18
John Kuo
EntityIndividual
Role
Senior VP
Shares862
Max PriceUS$106.01
SellUS$4,93005 Oct 18
Magnus Momsen
EntityIndividual
Role
Senior VP
Shares100
Max PriceUS$110.21
SellUS$51,92419 Sep 18
John Kuo
EntityIndividual
Role
Senior VP
Shares1,327
Max PriceUS$111.01
SellUS$142,14806 Sep 18
Magnus Momsen
EntityIndividual
Role
Senior VP
Shares2,800
Max PriceUS$111.68
SellUS$10,80420 Aug 18
John Kuo
EntityIndividual
Role
Senior VP
Shares365
Max PriceUS$110.00
SellUS$38,81017 Aug 18
John Kuo
EntityIndividual
Role
Senior VP
Shares962
Max PriceUS$110.00

Ownership Breakdown


Management Team

  • Kevin O’Reilly

    Senior Vice President of Global Operations

    • Tenure: 0.3yrs
  • Rafael Torres

    Senior Vice President of Business Development and Strategy

    • Tenure: 4.2yrs
  • Terilyn Monroe (52yo)

    Chief People Officer & Senior Vice President of People Places and Communications

    • Tenure: 1.8yrs
  • Gary Bischoping (51yo)

    Senior VP of Finance & CFO

    • Tenure: 2.2yrs
    • Compensation: $2.87m
  • Magnus Momsen

    Senior VP

  • Mike Bruff (50yo)

    Senior Vice President of Investor Relations

    • Tenure: 1.9yrs
  • Dow Wilson (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: $10.28m
  • John Kuo (56yo)

    Senior VP

    • Tenure: 14.0yrs
    • Compensation: $2.51m
  • Mark Plungy

    Director of Public Relations

  • Kolleen Kennedy (60yo)

    Chief Growth Officer & President of Proton Solutions

    • Compensation: $3.93m

Board Members

  • Tim Guertin (69yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: $270.50k
  • Anat Ashkenazi (46yo)

    Independent Director

    • Tenure: 0.6yrs
  • Dave Illingworth (65yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: $285.25k
  • Jeff Balser (56yo)

    Independent Director

    • Tenure: 0.8yrs
  • Dow Wilson (60yo)

    President

    • Tenure: 6.8yrs
    • Compensation: $10.28m
  • Jean-Luc Butel (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: $286.25k
  • Regina Dugan (56yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: $276.50k
  • Andy Eckert (57yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: $444.75k
  • Judy Bruner (60yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: $307.50k

Company Information

Varian Medical Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Varian Medical Systems, Inc.
  • Ticker: VAR
  • Exchange: NYSE
  • Founded: 1948
  • Industry: health care equipment
  • Sector: healthcare
  • Market Cap: US$12.078b
  • Shares outstanding: 90.95m
  • Website: Click here

Number of Employees


Location

  • Varian Medical Systems, Inc.
  • 3100 Hansen Way
  • Palo Alto
  • California
  • 94304
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VARNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
VNMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0LNULSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
VAR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates in two segments, Oncolo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 01:57
End of Day Share Price2019/07/19 00:00
Earnings2019/03/29
Annual Earnings2018/09/28


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.