(VREX) Varex Imaging - Overview
Sector: Healthcare | Industry: Medical Devices | Exchange: NASDAQ (USA) | Market Cap: 424m USD | Total Return: 29.9% in 12m
Avg Turnover: 4.73M
EPS Trend: -41.8%
Qual. Beats: 0
Rev. Trend: -52.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (320.4) with thin interest coverage (-0.6)
High Debt while negative Cash Flow
Interest Coverage Ratio -0.6 is critical
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Varex Imaging Corporation (VREX) is a global manufacturer of X-ray imaging components, operating through Medical and Industrial segments. The Medical division provides essential hardware and software for CT scans, mammography, and oncology, while the Industrial division focuses on linear accelerators and cargo inspection systems for security and non-destructive testing.
The company utilizes an OEM-heavy business model, supplying critical sub-systems to larger medical and security imaging equipment manufacturers rather than focusing solely on end-user retail. As a specialized player in the Health Care Equipment sector, Varex must navigate high R&D costs and strict regulatory standards required for radiation-emitting devices. Investors may find it useful to evaluate ValueRays competitive positioning within this niche hardware market. Headquartered in Utah, Varex maintains a global footprint with sales and service operations spanning North America, Europe, and Asia.
- Medical OEM demand for CT and oncology systems drives core revenue growth
- Global supply chain stability impacts manufacturing costs and component delivery timelines
- Security and industrial inspection contracts fluctuate with government infrastructure spending cycles
- China market exposure creates significant revenue volatility and geopolitical regulatory risk
- High R&D investment in digital detector technology determines long-term competitive positioning
| Net Income: -82.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -5.65 > 1.0 |
| NWC/Revenue: 50.18% < 20% (prev 62.24%; Δ -12.05% < -1%) |
| CFO/TA -0.00 > 3% & CFO -2.00m > Net Income -82.7m |
| Current Ratio: 3.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (41.9m) vs 12m ago -18.16% < -2% |
| Gross Margin: 33.55% > 18% (prev 0.34%; Δ 3.32k% > 0.5%) |
| Asset Turnover: 70.09% > 50% (prev 60.95%; Δ 9.13% > 0%) |
| Interest Coverage Ratio: -0.62 > 6 (EBITDA TTM 1.00m / Interest Expense TTM 42.1m) |
| A: 0.39 (Total Current Assets 625.6m - Total Current Liabilities 195.3m) / Total Assets 1.09b |
| B: -0.01 (Retained Earnings -11.7m / Total Assets 1.09b) |
| C: -0.02 (EBIT TTM -26.1m / Avg Total Assets 1.22b) |
| D: -0.03 (Book Value of Equity -16.9m / Total Liabilities 601.3m) |
| Altman-Z'' = 2.38 = BBB |
| DSRI: 0.98 (Receivables 148.9m/146.5m, Revenue 857.5m/827.5m) |
| GMI: 1.01 (GM 33.55% / 33.74%) |
| AQI: 0.68 (AQ_t 0.25 / AQ_t-1 0.37) |
| SGI: 1.04 (Revenue 857.5m / 827.5m) |
| TATA: -0.07 (NI -82.7m - CFO -2.00m) / TA 1.09b) |
| Beneish M = -3.28 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 10.17 with a total of 274,224 shares traded.
Over the past week, the price has changed by +4.85%,
over one month by -19.98%,
over three months by -24.78% and
over the past year by +29.89%.
Varex Imaging has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy VREX.
- StrongBuy: 3
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18.8 | 84.9% |
P/E Forward = 15.015
P/S = 0.4949
P/B = 0.8941
P/EG = 6.2987
Revenue TTM = 857.5m USD
EBIT TTM = -26.1m USD
EBITDA TTM = 1.00m USD
Long Term Debt = 329.0m USD (from longTermDebt, last quarter)
Short Term Debt = 23.7m USD (from shortTermDebt, last quarter)
Debt = 408.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 27.7m
Net Debt = 320.4m USD (calculated: Debt 408.7m - CCE 88.3m)
Enterprise Value = 744.8m USD (424.4m + Debt 408.7m - CCE 88.3m)
Interest Coverage Ratio = -0.62 (Ebit TTM -26.1m / Interest Expense TTM 42.1m)
EV/FCF = -24.18x (Enterprise Value 744.8m / FCF TTM -30.8m)
FCF Yield = -4.14% (FCF TTM -30.8m / Enterprise Value 744.8m)
FCF Margin = -3.59% (FCF TTM -30.8m / Revenue TTM 857.5m)
Net Margin = -9.64% (Net Income TTM -82.7m / Revenue TTM 857.5m)
Gross Margin = 33.55% ((Revenue TTM 857.5m - Cost of Revenue TTM 569.8m) / Revenue TTM)
Gross Margin QoQ = 33.61% (prev 33.30%)
Tobins Q-Ratio = 0.68 (Enterprise Value 744.8m / Total Assets 1.09b)
Interest Expense / Debt = 10.30% (Interest Expense 42.1m / Debt 408.7m)
Taxrate = 21.0% (US default 21%)
NOPAT = -20.6m (EBIT -26.1m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.20 (Total Current Assets 625.6m / Total Current Liabilities 195.3m)
Debt / Equity = 0.86 (Debt 408.7m / totalStockholderEquity, last quarter 474.2m)
Debt / EBITDA = 320.4 (Net Debt 320.4m / EBITDA 1.00m)
Debt / FCF = -10.40 (negative FCF - burning cash) (Net Debt 320.4m / FCF TTM -30.8m)
Total Stockholder Equity = 469.8m (last 4 quarters mean from totalStockholderEquity)
RoA = -6.76% (Net Income -82.7m / Total Assets 1.09b)
RoE = -17.18% (Net Income TTM -82.7m / Total Stockholder Equity 481.4m)
RoCE = -3.22% (EBIT -26.1m / Capital Employed (Equity 481.4m + L.T.Debt 329.0m))
RoIC = -2.26% (negative operating profit) (NOPAT -20.6m / Invested Capital 914.3m)
WACC = 10.61% (E(424.4m)/V(833.1m) * Re(12.99%) + D(408.7m)/V(833.1m) * Rd(10.30%) * (1-Tc(0.21)))
Discount Rate = 12.99% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 48.77 | Cagr: 1.08%
[DCF] Fair Price = unknown (Cash Flow -30.8m)
EPS Correlation: -41.81 | EPS CAGR: -12.79% | SUE: 0.14 | # QB: 0
Revenue Correlation: -52.00 | Revenue CAGR: -1.92% | SUE: -0.18 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=-8.05% | Revisions=+20% | Analysts=5
EPS current Year (2026-09-30): EPS=0.78 | Chg30d=-14.05% | Revisions=+20% | GrowthEPS=-13.3% | GrowthRev=+3.2%
EPS next Year (2027-09-30): EPS=1.02 | Chg30d=-3.16% | Revisions=+20% | GrowthEPS=+30.8% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: +20%