Varian Medical Systems
- Home ›
- US ›
- Healthcare
Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. The last earnings update was 39 days ago. More info.
Add to Portfolio Compare Print
VAR Share Price and Events
7 Day Returns
1 Year Returns
VAR Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Varian Medical Systems (VAR) | 0.1% | 0.2% | -3.5% | 7.1% | 61.5% | 55.2% |
| US Medical Equipment | 0.7% | 5% | 1.5% | 12.2% | 63.1% | 94.2% |
| US Market | 0.5% | -0.1% | 1% | 0.8% | 37.5% | 37.5% |
1 Year Return vs Industry and Market
- VAR underperformed the Medical Equipment industry which returned 12.2% over the past year.
- VAR outperformed the Market in United States of America which returned 0.8% over the past year.
VAR Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Varian Medical Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Varian Medical Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 7 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.1% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Medical Equipment Unlevered Beta | Simply Wall St/ S&P Global | 0.85 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.852 (1 + (1- 21%) (0%)) |
0.901 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.9 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.901 * 5.96%) |
8.1% |
Discounted Cash Flow Calculation for NYSE:VAR using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Varian Medical Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.1%) |
|
|---|---|---|---|
| 2019 | 384.00 | Analyst x1 | 355.24 |
| 2020 | 460.50 | Analyst x2 | 394.10 |
| 2021 | 534.00 | Analyst x1 | 422.77 |
| 2022 | 593.66 | Est @ 11.17% | 434.79 |
| 2023 | 644.95 | Est @ 8.64% | 436.98 |
| 2024 | 689.24 | Est @ 6.87% | 432.01 |
| 2025 | 728.02 | Est @ 5.63% | 422.13 |
| 2026 | 762.65 | Est @ 4.76% | 409.09 |
| 2027 | 794.29 | Est @ 4.15% | 394.14 |
| 2028 | 823.87 | Est @ 3.72% | 378.20 |
| Present value of next 10 years cash flows | $4,079.43 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $823.87 × (1 + 2.73%) ÷ (8.1% – 2.73%) |
$15,769.46 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $15,769.46 ÷ (1 + 8.1%)10 |
$7,238.98 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $4,079.43 + $7,238.98 |
$11,318.41 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $11,318.41 / 90.95 |
$124.45 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $124.45 |
| Current discount | Discount to share price of
$130.88
= -1 x ($130.88 - $124.45) / $124.45 |
-5.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Varian Medical Systems is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Varian Medical Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Varian Medical Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-29) in USD | $4.18 |
| NYSE:VAR Share Price ** | NYSE (2019-06-14) in USD | $130.88 |
| United States of America Medical Equipment Industry PE Ratio | Median Figure of 64 Publicly-Listed Medical Equipment Companies | 40.75x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Varian Medical Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:VAR Share Price ÷ EPS (both in USD) = 130.88 ÷ 4.18 |
31.35x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- 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
Does
Varian Medical Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 31.35x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts |
13.6%per year |
| United States of America Medical Equipment Industry PEG Ratio | Median Figure of 55 Publicly-Listed Medical Equipment Companies | 2.25x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 31.35x ÷ 13.6% |
2.3x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Varian Medical Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Varian Medical Systems's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-29) in USD | $19.03 |
| NYSE:VAR Share Price * | NYSE (2019-06-14) in USD | $130.88 |
| United States of America Medical Equipment Industry PB Ratio | Median Figure of 183 Publicly-Listed Medical Equipment Companies | 4.36x |
| United States of America Market PB Ratio | Median Figure of 5,244 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:VAR Share Price ÷ Book Value per Share (both in USD) = 130.88 ÷ 19.03 |
6.88x |
* Primary Listing of Varian Medical Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Varian Medical Systems is overvalued based on assets compared to the US Medical Equipment industry average.
Value checks
We assess Varian Medical Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check) Varian Medical Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
VAR Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Varian Medical Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Varian Medical Systems's earnings growth is positive but not above the United States of America market average.
- Varian Medical Systems's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:VAR Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts | 13.6% |
| NYSE:VAR Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts | 9% |
| United States of America Medical Equipment Industry Earnings Growth Rate | Market Cap Weighted Average | 21.9% |
| United States of America Medical Equipment Industry Revenue Growth Rate | Market Cap Weighted Average | 7.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-09-30 | 4,204 | 640 | 1 | |
| 2021-09-30 | 3,742 | 609 | 520 | 5 |
| 2020-09-30 | 3,408 | 565 | 462 | 7 |
| 2019-09-30 | 3,138 | 521 | 415 | 7 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-29 | 3,031 | 338 | 381 |
| 2018-12-28 | 2,982 | 417 | 365 |
| 2018-09-28 | 2,919 | 455 | 150 |
| 2018-06-29 | 2,839 | 476 | 112 |
| 2018-03-30 | 2,763 | 529 | 109 |
| 2017-12-29 | 2,696 | 496 | 106 |
| 2017-09-29 | 2,619 | 399 | 225 |
| 2017-06-30 | 2,645 | 421 | 241 |
| 2017-03-31 | 2,655 | 362 | 253 |
| 2016-12-30 | 2,607 | 361 | 260 |
| 2016-09-30 | 2,594 | 356 | 322 |
| 2016-07-01 | 2,692 | 358 | 330 |
| 2016-04-01 | 2,833 | 446 | 361 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
All data from Varian Medical Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-09-30 | 7.33 | 7.33 | 7.33 | 1.00 |
| 2021-09-30 | 5.71 | 6.29 | 5.24 | 3.00 |
| 2020-09-30 | 4.98 | 5.22 | 4.73 | 4.00 |
| 2019-09-30 | 4.48 | 4.81 | 4.27 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-29 | 4.18 |
| 2018-12-28 | 4.00 |
| 2018-09-28 | 1.64 |
| 2018-06-29 | 1.22 |
| 2018-03-30 | 1.19 |
| 2017-12-29 | 1.15 |
| 2017-09-29 | 2.44 |
| 2017-06-30 | 2.59 |
| 2017-03-31 | 2.70 |
| 2016-12-30 | 2.76 |
| 2016-09-30 | 3.37 |
| 2016-07-01 | 3.41 |
| 2016-04-01 | 3.69 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Varian Medical Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Varian Medical Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Varian Medical Systems has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
VAR Past Performance
How has Varian Medical Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
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%).
Earnings and Revenue History
All data from Varian Medical Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-29 | 3,031.10 | 380.80 | 567.80 | 239.40 |
| 2018-12-28 | 2,981.60 | 365.40 | 557.50 | 238.90 |
| 2018-09-28 | 2,919.10 | 149.90 | 539.30 | 233.90 |
| 2018-06-29 | 2,839.30 | 112.10 | 534.80 | 226.00 |
| 2018-03-30 | 2,763.00 | 109.20 | 514.20 | 221.60 |
| 2017-12-29 | 2,696.30 | 105.60 | 505.30 | 216.00 |
| 2017-09-29 | 2,619.30 | 225.30 | 537.20 | 210.00 |
| 2017-06-30 | 2,644.70 | 240.70 | 526.30 | 211.00 |
| 2017-03-31 | 2,654.80 | 252.80 | 535.30 | 207.00 |
| 2016-12-30 | 2,606.80 | 260.40 | 512.60 | 202.70 |
| 2016-09-30 | 2,593.70 | 321.90 | 472.20 | 200.40 |
| 2016-07-01 | 2,691.73 | 329.61 | 464.01 | 216.50 |
| 2016-04-01 | 2,832.84 | 361.32 | 447.63 | 225.41 |
| 2016-01-01 | 2,977.05 | 390.09 | 455.62 | 235.72 |
| 2015-10-02 | 2,490.70 | 310.90 | 428.80 | 195.40 |
| 2015-07-03 | 3,093.38 | 418.65 | 476.75 | 235.57 |
| 2015-04-03 | 3,057.05 | 412.24 | 490.07 | 232.55 |
| 2015-01-02 | 3,076.15 | 399.06 | 490.94 | 233.91 |
| 2014-09-26 | 3,049.80 | 403.70 | 469.90 | 234.80 |
| 2014-06-27 | 3,000.42 | 415.18 | 459.46 | 232.52 |
| 2014-03-28 | 2,978.95 | 420.93 | 437.62 | 228.87 |
| 2013-12-27 | 2,968.80 | 440.93 | 433.09 | 219.09 |
| 2013-09-27 | 2,942.90 | 438.25 | 431.08 | 208.21 |
| 2013-06-28 | 2,929.12 | 441.10 | 424.54 | 197.32 |
| 2013-03-29 | 2,908.16 | 437.11 | 426.83 | 192.93 |
| 2012-12-28 | 2,860.08 | 432.10 | 419.83 | 189.09 |
| 2012-09-28 | 2,807.02 | 427.05 | 416.52 | 185.74 |
| 2012-06-29 | 2,769.78 | 417.30 | 400.83 | 183.70 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Varian Medical Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Varian Medical Systems used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
- Varian Medical Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Varian Medical Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Varian Medical Systems has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
VAR Health
How is Varian Medical Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Varian Medical Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- 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.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Varian Medical Systems has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Varian Medical Systems Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-29 | 1,740.10 | 0.00 | 546.30 |
| 2018-12-28 | 1,682.00 | 0.00 | 656.10 |
| 2018-09-28 | 1,588.70 | 0.00 | 544.20 |
| 2018-06-29 | 1,501.50 | 18.20 | 542.30 |
| 2018-03-30 | 1,456.60 | 255.00 | 746.00 |
| 2017-12-29 | 1,391.00 | 340.00 | 836.60 |
| 2017-09-29 | 1,521.90 | 350.00 | 716.20 |
| 2017-06-30 | 1,394.30 | 364.00 | 658.20 |
| 2017-03-31 | 1,292.60 | 546.50 | 705.50 |
| 2016-12-30 | 1,739.30 | 607.20 | 814.70 |
| 2016-09-30 | 1,754.50 | 665.90 | 906.70 |
| 2016-07-01 | 1,702.19 | 701.44 | 835.94 |
| 2016-04-01 | 1,703.87 | 794.14 | 961.10 |
| 2016-01-01 | 1,642.06 | 728.25 | 953.38 |
| 2015-10-02 | 1,726.30 | 495.90 | 845.50 |
| 2015-07-03 | 1,742.93 | 494.45 | 1,023.14 |
| 2015-04-03 | 1,678.32 | 512.50 | 932.30 |
| 2015-01-02 | 1,617.90 | 525.00 | 972.88 |
| 2014-09-26 | 1,616.42 | 437.50 | 915.45 |
| 2014-06-27 | 1,714.91 | 479.58 | 986.76 |
| 2014-03-28 | 1,679.02 | 468.75 | 1,018.44 |
| 2013-12-27 | 1,699.59 | 481.25 | 1,045.17 |
| 2013-09-27 | 1,713.85 | 506.25 | 1,180.56 |
| 2013-06-28 | 1,683.55 | 174.37 | 825.04 |
| 2013-03-29 | 1,627.87 | 238.12 | 795.87 |
| 2012-12-28 | 1,576.89 | 206.25 | 807.29 |
| 2012-09-28 | 1,509.78 | 161.25 | 754.28 |
| 2012-06-29 | 1,463.33 | 175.01 | 680.54 |
- 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.
Financial health checks
We assess Varian Medical Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Varian Medical Systems has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
VAR Dividends
What is Varian Medical Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Varian Medical Systems
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 7 Analyst Estimates (S&P Global) | See Below |
| United States of America Medical Equipment Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-09-30 | ||
| 2021-09-30 | 0.00 | 1.00 |
| 2020-09-30 | 0.00 | 2.00 |
| 2019-09-30 | 0.00 | 2.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- 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.
Income/ dividend checks
We assess Varian Medical Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Varian Medical Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Varian Medical Systems has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
VAR Management
CEO
| COMPENSATION | $10,276,439 |
| AGE | 59 |
| TENURE AS CEO | 6.8 years |
CEO Bio
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, 2018. Mr. Wilson served as the Chief Operating Officer and Corporate Executive Vice President of Varian Medical Systems Inc. from October 2011 to September 2012 and from August 2005 to September 2012 respectively. He served as the President of Oncology Systems at Varian Medical Systems Inc. from January 10, 2005 to September 2011 and served as its Corporate Vice President since joining in January 2005 until August 2005. Prior to joining the Varian Medical Systems, he served as the Chief Executive Officer of the Healthcare-Information Technologies business in General Electric Company or GEC from 2003 to 2005. Mr. Wilson has 19-year career with General Electric in a variety of senior management positions in both the United States and Europe. While at GEC, he also managed several large, global enterprises, including the CT (Cat Scanner), Xray and Functional Imaging Businesses. Mr. Wilson served as Chief Executive Officer of Patient Monitoring Technologies. Previously, he served as General Manager of Surgical, X-ray and Interventional Businesses and General Manager of Functional Imaging of the Healthcare-Information Technologies business at GEC from 2002 to 2003 and served as its General Manager of Computed Tomography of the Healthcare-Information Technologies business from 2000 to 2002. He was appointed to U.S. President’s Advisory Council on Doing Business in Africa in 2015 and completed a second term on the Council. He gained significant knowledge of domestic and international medical and healthcare industries. He served management positions at General Electric and critical insight into operational requirements of a company with worldwide reach, knowledge of corporate and business unit strategies and operational expertise, each gained from executive management experience at two large, global organizations. He was Director at Varex Imaging Corporation since January 27, 2017 until January 2018. He has been a Director of Varian Medical Systems, Inc. since September 29, 2012. He was a Director of Saba Software, Inc. since August 28, 2006 until March 2015 and served as its Lead Director from August 2011 to March 1, 2013. Mr. Wilson also serves on the board of directors of industry associations AdvaMed and the US-India Strategic Partner Forum. Mr. Wilson holds B.A. degree in English and business from Brigham Young University and an MBA degree from Dartmouth's Amos Tuck School of Business.
CEO Compensation
- Dow's compensation has been consistent with company performance over the past year, both up more than 20%.
- Dow's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Varian Medical Systems management team in years:
- The tenure for the Varian Medical Systems management team is about average.
Management Team
Dow Wilson
President
$10M
59
6.8 yrs
Gary Bischoping
Senior VP of Finance & CFO
$3M
50
2.1 yrs
John Kuo
Senior VP
$3M
55
13.9 yrs
Kolleen Kennedy
Chief Growth Officer & President of Proton Solutions
$4M
59
Kevin O’Reilly
Senior Vice President of Global Operations
0.2 yrs
Magnus Momsen
Senior VP
Mike Bruff
Senior Vice President of Investor Relations
49
1.8 yrs
Mark Plungy
Director of Public Relations
Rafael Torres
Senior Vice President of Business Development and Strategy
4.1 yrs
Terilyn Monroe
Chief People Officer & Senior Vice President of People Places and Communications
51
1.7 yrs
Board of Directors Tenure
Average tenure and age of the Varian Medical Systems board of directors in years:
- The tenure for the Varian Medical Systems board of directors is about average.
Board of Directors
Andy Eckert
Chairman
$445K
56
5.3 yrs
Dow Wilson
President
$10M
59
6.8 yrs
Dave Illingworth
Independent Director
$285K
64
7.8 yrs
Regina Dugan
Independent Director
$277K
55
5.5 yrs
Judy Bruner
Independent Director
$308K
59
2.8 yrs
Jean-Luc Butel
Independent Director
$286K
62
2.3 yrs
Tim Guertin
Director
$271K
68
14.4 yrs
Jeff Balser
Independent Director
55
0.7 yrs
Anat Ashkenazi
Independent Director
45
0.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Varian Medical Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Varian Medical Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
VAR News
Simply Wall St News
A Holistic Look At Varian Medical Systems, Inc. (NYSE:VAR)
For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Varian Medical Systems here. … NYSE:VAR Income Statement, June 10th 2019 Next Steps: For Varian Medical Systems, I've compiled three pertinent factors you should look at: Future Outlook: What are well-informed industry analysts predicting for VAR’s future growth? … Take a look at our free research report of analyst consensus for VAR’s outlook.
Simply Wall St - – Full articleIs Varian Medical Systems, Inc.'s (NYSE:VAR) Liquidity Good Enough?
See our latest analysis for Varian Medical Systems Can VAR service its debt comfortably? … The good news for investors is that Varian Medical Systems has no debt. … Given zero long-term debt on its balance sheet, Varian Medical Systems has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations.
Simply Wall St - – Full articleDoes This Valuation Of Varian Medical Systems, Inc. (NYSE:VAR) Imply Investors Are Overpaying?
We assume companies with shrinking free cash flow are will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $443.57 $486.86 $534.00 $572.92 $606.84 $636.95 $664.30 $689.71 $713.82 $737.13 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x1 Est @ 7.29% Est @ 5.92% Est @ 4.96% Est @ 4.29% Est @ 3.82% Est @ 3.5% Est @ 3.27% Present Value ($, Millions) Discounted @ 8.27% $409.67 $415.29 $420.69 $416.85 $407.78 $395.31 $380.78 $365.12 $349.01 $332.86 Present Value of 10-year Cash Flow (PVCF)= $3.89b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … NYSE:VAR Intrinsic value, May 13th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Simply Wall St - – Full articleVarian Medical Systems, Inc. (NYSE:VAR): What We Can Expect From This Growth Stock
Help shape the future of investing tools and you could win a $250 gift card! … Based on Varian Medical Systems, Inc.'s (NYSE:VAR) earnings update on 29 March 2019, … with earnings expected to grow by 16% in the upcoming year
Simply Wall St - – Full articleHow Should Investors React To Varian Medical Systems, Inc.'s (NYSE:VAR) CEO Pay?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Dow Wilson's Compensation Compare With Similar Sized Companies. … is worth US$12b, and total annual CEO compensation is US$10m.
Simply Wall St - – Full articleDo You Like Varian Medical Systems, Inc. (NYSE:VAR) At This P/E Ratio?
Varian Medical Systems has a price to earnings ratio of 35.19, based on the last twelve months. … How Do I Calculate Varian Medical Systems's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs Varian Medical Systems, Inc.'s (NYSE:VAR) 22% ROE Better Than Average?
We'll use ROE to examine Varian Medical Systems, Inc. … Over the last twelve months Varian Medical Systems has recorded a ROE of 22%. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAre Varian Medical Systems, Inc.’s (NYSE:VAR) High Returns Really That Great?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … The formula for calculating the return on capital employed is:
Simply Wall St - – Full articleAt US$133, Is It Time To Put Varian Medical Systems, Inc. (NYSE:VAR) On Your Watch List?
The company's stock. … led the NYSE gainers with a relatively large price hike in the past couple of weeks … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price.
Simply Wall St - – Full articleHow Many Insiders Sold Varian Medical Systems, Inc. (NYSE:VAR) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Varian Medical Systems, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price
Simply Wall St - – Full articleVAR Company Info
Description
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 two segments, Oncology Systems and Proton Solutions. The Oncology Systems segment offers hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy, as well as related quality assurance equipment. Its products include linear accelerators, brachytherapy after loaders, treatment accessories, and quality assurance software; and information management, treatment planning, image processing, clinical knowledge exchange, patient care management, decision-making support, and practice management software. This segment serves university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices, medical oncology practices, radiotherapy centers, and cancer care clinics. The Proton Solutions segment designs, develops, manufactures, sells, and services products and systems for delivering proton therapy for the treatment of cancer. Varian Medical Systems, Inc. has a strategic partnership with Siemens AG to co-develop new imaging and treatment solutions; and a strategic cooperation framework agreement with Shandong Cancer Hospital for proton therapy clinical application and research in China. The company was formerly known as Varian Associates, Inc. and changed its name to Varian Medical Systems, Inc. in April 1999. Varian Medical Systems, Inc. was founded in 1948 and is headquartered in Palo Alto, California.
Details
| Name: | Varian Medical Systems, Inc. |
| VAR | |
| Exchange: | NYSE |
| Founded: | 1948 |
| $11,902,979,367 | |
| 90,945,747 | |
| Website: | http://www.varian.com |
| Address: |
Varian Medical Systems, Inc. 3100 Hansen Way, Palo Alto, California, 94304, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | VAR | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | VNM | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0LNU | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| BMV | VAR * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Health Care Equipment | |
| Healthcare |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/16 23:46 |
| End of day share price update: | 2019/06/14 00:00 |
| Last estimates confirmation: | 2019/06/14 |
| Last earnings filing: | 2019/05/08 |
| Last earnings reported: | 2019/03/29 |
| Last annual earnings reported: | 2018/09/28 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
