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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

MiMedx Group, Inc.

Varex Imaging Corp.

Stevanato Group SpA

SI-BONE, Inc.

Paragon 28, Inc.

Establishment Labs Holdings, Inc.

Treace Medical Concepts, Inc.

Avanos Medical, Inc.

Embecta Corp.

The Beauty Health Co.

Quanterix Corp.

Why is Varex Imaging Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.28% and Operating profit at 81.68% over the last 5 years

Positive results in Jun 25

PRE-TAX PROFIT(Q) At USD 7.1 MM has Grown at 79.75%
NET PROFIT(Q) At USD 4.6 MM has Grown at 148%
RAW MATERIAL COST(Y) Fallen by -4.07% (YoY)

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 -31.60%, its profits have fallen by -170.6%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.60% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Varex Imaging Corp. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Varex Imaging Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Varex Imaging Corp.

-29.51%

-0.44

65.32%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.28%

EBIT Growth (5y)

81.68%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

4.58

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.85

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.64

EV to EBIT

13.05

EV to EBITDA

8.64

EV to Capital Employed

0.78

EV to Sales

0.84

PEG Ratio

Dividend Yield

ROCE (Latest)

5.96%

ROE (Latest)

-7.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At USD 7.1 MM has Grown at 79.75%

NET PROFIT(Q)

At USD 4.6 MM has Grown at 148%

RAW MATERIAL COST(Y)

Fallen by -4.07% (YoY

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 58.4 MM

INTEREST(9M)

At USD 28.2 MM has Grown at 38.92%

ROCE(HY)

Lowest at -25.57%

INTEREST COVERAGE RATIO(Q)

Lowest at 208.33

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.87 times

EPS(Q)

Lowest at USD -2.15

Here's what is working for Varex Imaging Corp.

Pre-Tax Profit

At USD 7.1 MM has Grown at 79.75%

over average net sales of the previous four periods of USD 3.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 4.6 MM has Grown at 148%

over average net sales of the previous four periods of USD -9.58 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -4.07% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 58.4 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 Coverage Ratio

Lowest at 208.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 28.2 MM has Grown at 38.92%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD -2.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 1.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio