VREX

Varex Imaging Corporation

Fundamental data last updated:August 30, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Devices

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company operates in two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components comprising X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, 3D reconstruction and computer-aided diagnostic software, collimators, automatic exposure control devices, generators, heat exchangers, ionization chambers, and buckys. This segment's products are used in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, oncology, CT, cardiac, surgery, dental, computer-aided detection, and other diagnostic radiography uses. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital detectors, and high voltage connectors for use in security and industrial inspection applications, such as airport security, cargo screening at ports and borders, and nondestructive testing and examination in various applications. Varex Imaging Corporation sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation was founded in 2016 and is based in Salt Lake City, Utah.

 


VALUATION

P/E

-5.39

Market Cap ($M USD)

$447.94M

Forward P/E

5.32

PEG

0.03

PRICE TO SALES

0.52

PRICE TO BOOK

0.94

EV / EBITDA

743.64

5-Year Average P/E

Free Cash Flow Yield

-6.88%

DCF Value

$13.20

Graham Number

N/A

Price to FCF

-14.54

EV to FCF

-24.14

Earnings Yield

-18.55%

FCF Yield

-6.88%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.97

Next Year EPS Growth Estimate

$2.00

Next Year Revenue Growth Estimate

$1.07B

Return on Equity (ROE)

-17.61%

FREE CASH FLOW

Operating Margin

-3.65%

Debt-to-Equity

0.85

Piotroski F-Score

3

Altman Z-Score

1.61

Return on Invested Capital (ROIC)

-3.50%

Current Ratio

3.20

Quick Ratio

1.43

Net Debt to EBITDA

295.70

Interest Coverage

-0.74

Gross Profit margin

33.55%

FCF PER SHARE

$-0.74

REVENUE PER SHARE

$20.47

Gainseekers Quantitative Analysis

Summary

Varex Imaging Corporation is a perplexing case of potential mispricing. Recent pricing indicated it traded below its DCF value, suggesting a possible undervaluation. However, the negative earnings yield and a concerning Altman Z-score of 1.58 highlight financial distress and potential insolvency risks. The Forward P/E of 4.915 might attract GARP investors, but the negative ROIC and operating margin raise red flags about management’s efficiency. This stock is a high-risk, high-reward play, with the market seemingly skeptical of its turnaround potential.

AI Exposure / Tech Reliance

Operating in the Medical Devices industry, Varex Imaging is well-positioned to leverage AI advancements in healthcare diagnostics. The integration of AI could enhance imaging accuracy and efficiency, offering a competitive edge. However, the company's ability to innovate and adapt will be crucial in maintaining relevance in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, Varex offers a tantalizing opportunity. Despite a low Piotroski F-Score of 3, the Forward PEG ratio of 0.024 signals deep value, suggesting growth at a bargain. The company's gross profit margin of 33.55% indicates solid pricing power, while a current ratio of 3.20 reflects strong liquidity. These factors, combined with a significant distance from its 52-week high, might entice those seeking undervalued gems with potential upside.

The Bear Case

Yet, the bear case is hard to ignore. Varex's negative EPS and a staggering EV to EBITDA of 374.843 paint a grim picture of profitability and operational efficiency. The negative FCF yield and price to FCF ratio underscore severe cash flow issues, while the interest coverage ratio suggests difficulty in meeting debt obligations. The stock's technical position, extended below both its 50-day and 200-day SMAs, further signals caution for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$14.50

Institutional Ownership %

1-Year Beta

0.96

Insider Buying % (6 Mo)

Distance to 52-Week High

36.89%

Distance to 52-Week Low

36.47%

EARNINGS SURPRISE %

-4.55%

50-DAY SMA

$10.96

200-DAY SMA

$11.86

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.