Varex Imaging Corp. (VREX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Stevanato Group SpA

Establishment Labs Holdings, Inc.

Paragon 28, Inc.

SI-BONE, Inc.

MiMedx Group, Inc.

Quanterix Corp.

Avanos Medical, Inc.

Treace Medical Concepts, Inc.

The Beauty Health Co.

Varex Imaging Corp.

Embecta Corp.

Why is Varex Imaging Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.62% and Operating profit at 42.85% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at USD -2.7 MM
ROCE(HY) Lowest at -16.15%
INTEREST COVERAGE RATIO(Q) Lowest at 122.54

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 30.44%, its profits have risen by 153.3% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Varex Imaging Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Varex Imaging Corp.

26.57%

-0.66

51.64%

S&P 500

20.77%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.62%

EBIT Growth (5y)

42.85%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

4.58

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.87

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.87%

ROE (avg)

4.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.94

EV to EBIT

9.91

EV to EBITDA

7.17

EV to Capital Employed

0.96

EV to Sales

0.82

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

9.71%

ROE (Latest)

5.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET PROFIT(9M)

Higher at USD 6.13 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.81 times

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -2.7 MM

ROCE(HY)

Lowest at -16.15%

INTEREST COVERAGE RATIO(Q)

Lowest at 122.54

RAW MATERIAL COST(Y)

Grown by 6.91% (YoY

CASH AND EQV(HY)

Lowest at USD 213.9 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.8 times

INTEREST(Q)

Highest at USD 17.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.81 %

PRE-TAX PROFIT(Q)

Lowest at USD -6.5 MM

NET PROFIT(Q)

Lowest at USD -8.2 MM

Here's what is working for Varex Imaging Corp.

Debtors Turnover Ratio

Highest at 5.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Varex Imaging Corp.

Pre-Tax Profit

At USD -6.5 MM has Fallen at -173.45%

over average net sales of the previous four periods of USD 8.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -8.2 MM has Fallen at -227.65%

over average net sales of the previous four periods of USD 6.42 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -2.7 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 17.3 MM has Grown at 118.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 122.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 17.3 MM

in the last five periods and Increased by 118.99% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 9.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -6.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -8.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 213.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.91% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales