VREX Stock Analysis: Varex Imaging | NASDAQ
Medical Devices | NASDAQ, USA | Market Cap: 447m USD | 12M Return: 29.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.26M
EPS Trend: -41.8%
Qual. Beats: 0
Rev. Trend: -52.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 9.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components, operating through two reportable segments: Medical and Industrial. The company was incorporated in 2016 and is headquartered in Salt Lake City, Utah, with a global footprint spanning North America, Latin America, Europe, the Middle East, India, Africa, Asia, and Australia.
The Medical segment produces X-ray tubes, digital detectors, high voltage connectors, ionization chambers, image-processing and computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. These components are used in CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography applications, serving original equipment manufacturers (OEMs) that integrate them into finished imaging systems.
The Industrial segment manufactures Linatron X-ray linear accelerators, non-intrusive cargo inspection systems, X-ray tubes, digital detectors, high voltage connectors, and coolers. These products support security and inspection end-uses such as airport baggage screening, port and border cargo screening, and nondestructive testing. Distribution occurs through imaging system OEMs, independent service companies, distributors, and direct sales to end-users.
The dual-segment model exposes Varex to both cyclical healthcare capital equipment demand and longer-cycle industrial/security spending. Component-level suppliers like Varex typically generate revenue tied to OEM system shipments as well as an aftermarket stream from replacement tubes, detectors, and service contracts on the installed base.
- CT and mammography OEM orders drive Medical segment revenue
- Border and port security spending lifts Industrial inspection demand
- OEM pricing pressure compresses X-ray tube and detector margins
| 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 |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| 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 33.74%; Δ -0.19% > 0.5%) |
| Asset Turnover: 70.09% > 50% (prev 60.95%; Δ 9.13% > 0%) |
| Interest Coverage Ratio: -0.79 > 6 (EBIT TTM -33.3m / 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: -0.03 (EBIT TTM -33.3m / Avg Total Assets 1.22b) |
| D: 0.79 (Book Value of Equity 474.2m / Total Liabilities 601.3m) |
| Altman-Z'' = 3.20 = A |
| DSRI: 0.98 (Receivables 148.9m/146.5m, Revenue 857.5m/827.5m) |
| GMI: 1.01 (GM 33.74% / 33.55%) |
| 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 = -3.21 (Cap -4..+1) = AA |
As of July 11, 2026, the stock is trading at USD 11.05 with a total of 300,846 shares traded. Over the past week, the price has changed by +4.15%, over one month by +4.94%, over three months by -1.16% and over the past year by +29.39%.
Current recommended Stop Loss: 10.30 (which is 6.8% or 1.4 ATR below the current price).
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 | 62.9% |
P/E Forward = 11.534
P/S = 0.5215
P/B = 0.943
P/EG = 4.979
Revenue TTM = 857.5m USD
EBIT TTM = -33.3m USD
EBITDA TTM = -6.20m 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 = 767.6m USD (447.2m + Debt 408.7m - CCE 88.3m)
Interest Coverage Ratio = -0.79 (Ebit TTM -33.3m / Interest Expense TTM 42.1m)
EV/FCF = -24.92x (Enterprise Value 767.6m / FCF TTM -30.8m)
FCF Yield = -4.01% (FCF TTM -30.8m / Enterprise Value 767.6m)
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 = 0.70 (Enterprise Value 767.6m / Total Assets 1.09b)
Interest Expense / Debt = 10.30% (Interest Expense 42.1m / Debt 408.7m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -26.3m (EBIT -33.3m * (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 = -51.68 (negative EBITDA) (Net Debt 320.4m / EBITDA -6.20m)
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 = -17.61% (Net Income TTM -82.7m / Total Stockholder Equity 469.8m)
RoCE = -4.17% (EBIT -33.3m / Capital Employed (Equity 469.8m + L.T.Debt 329.0m))
RoIC = -3.01% (negative operating profit) (NOPAT -26.3m / Invested Capital 874.9m)
WACC = 10.44% (E(447.2m)/V(855.9m) * Re(12.54%) + D(408.7m)/V(855.9m) * Rd(10.30%) * (1-Tc(0.21)))
Discount Rate = 12.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 58.43 | Cagr: 1.41%
[DCF] Fair Price = unknown (Cash Flow -30.8m)
EPS Correlation: -41.81 | EPS CAGR: -12.79% | SUE: 0.0 | # 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=+0.00% | Revisions=-40% | Analysts=5
EPS current Year (2026-09-30): EPS=0.78 | Chg30d=-0.51% | Revisions=+17% | GrowthEPS=-13.6% | GrowthRev=+3.1%
EPS next Year (2027-09-30): EPS=1.06 | Chg30d=-0.37% | Revisions=-25% | GrowthEPS=+36.8% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: -22% (up=2, down=4)