Varex Imaging Corporation (VREX)
NASDAQ:VREX
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Varex Imaging
(NASDAQ:VREX)
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Rating:46Neutral
Price Target:
$10.50
▼(-22.74% Downside)
Action:ReiteratedDate:03/16/26
The score is held down primarily by weakened financial performance (swing to losses and negative TTM free cash flow) and bearish technicals (below key moving averages with negative MACD). A high P/E further pressures the outlook, partially offset by a constructive earnings call with improving non-GAAP results and a positive debt refinancing that reduces interest and refinancing risk.
Positive Factors
Revenue growth & Industrial momentum
Sustained top-line expansion and double‑digit Industrial growth broaden the installed base and validate product-market fit. Durable revenue gains support scale economics, R&D investment and improved bargaining with OEMs, reducing dependence on any single end market over the medium term.
Negative Factors
Deteriorated profitability and returns
Margins and returns have reversed from prior profitable years, reflecting structural earnings pressure. Negative net margin and ROE erode retained capital, restrict reinvestment, and make the business more sensitive to volume swings; sustained margin recovery is required to restore long‑term capital efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & Industrial momentum
Sustained top-line expansion and double‑digit Industrial growth broaden the installed base and validate product-market fit. Durable revenue gains support scale economics, R&D investment and improved bargaining with OEMs, reducing dependence on any single end market over the medium term.
Read all positive factors
Varex Imaging (VREX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$493.58M
Dividend YieldN/A
Average Volume (3M)297.70K
Price to Earnings (P/E)52.9
Beta (1Y)2.18
Revenue Growth4.14%
EPS Growth-45.29%
CountryUS
Employees2,300
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.19
Shares Outstanding41,900,000
10 Day Avg. Volume224,850
30 Day Avg. Volume297,697
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)1.05
Price to Sales (P/S)0.59
P/FCF Ratio26.29
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda103.32
Forecast
1Y Price Target
$18.00Price Target Upside32.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.84
Revenue Forecast (FY)$872.38M
Varex Imaging Business Overview & Revenue Model
Company Description
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 tub...
How the Company Makes Money
Varex makes money primarily by selling imaging components and related products to OEM customers that build complete imaging systems. Key revenue streams include: (1) X-ray tubes: the company sells X-ray sources used in medical imaging systems (inc...
Varex Imaging Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive tone: solid revenue growth (+5% YoY), strong Industrial performance (+17% YoY), improved non-GAAP profitability (EBITDA +12%, non-GAAP EPS +90%), and active customer engagement and product momentum (RSNA, India ramp, photon-counting interest). Offsetting risks include a sizable inventory build and $16M operating cash outflow, elevated debt that will require refinancing, a decline in APAC (-7%) and a notable GAAP/non-GAAP gap (GAAP EPS $0.05). Overall, results and management commentary skew positive given durable customer engagement and pipeline, but near-term balance-sheet and regional/headline GAAP considerations temper the outlook.Positive Updates
Revenue Growth
Total Q1 revenue $210.0M, up 5% year-over-year and toward the high end of guidance.
Negative Updates
APAC Revenue Decline
APAC revenue decreased 7% year-over-year; China sales described as stable/flattish (about 17% of total revenue) with management expecting China to be flat to modest growth for FY26.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total Q1 revenue $210.0M, up 5% year-over-year and toward the high end of guidance.
Read all positive updates
Company Guidance
Varex guided Q2 (non‑GAAP) to revenues of $210–$225 million and non‑GAAP diluted EPS of $0.15–$0.25, based on a non‑GAAP gross margin of 33%–34%, non‑GAAP operating expenses of about $52 million, net interest/other expense of $7–$8 million, an estimated tax rate of ~23% and a non‑GAAP diluted share count of ~42 million. For context, Q1 revenue was $210 million with a 34% non‑GAAP gross margin and $0.19 non‑GAAP EPS, and the company reiterated a full‑year 2026 tax rate expectation of about 23% while noting a change to its non‑GAAP policy to exclude equity‑method gains/losses.Varex Imaging Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 854.40M | 844.60M | 811.00M | 893.40M | 859.40M | 818.10M |
| Gross Profit | 291.80M | 290.50M | 256.90M | 290.30M | 283.50M | 271.50M |
| EBITDA | 7.60M | 3.50M | 62.90M | 94.70M | 114.50M | 104.50M |
| Net Income | -67.70M | -70.30M | -47.70M | 48.20M | 30.30M | 17.40M |
Balance Sheet | ||||||
| Total Assets | 1.10B | 1.11B | 1.22B | 1.25B | 1.18B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 125.60M | 155.10M | 200.50M | 193.90M | 89.40M | 144.60M |
| Total Debt | 401.30M | 401.90M | 470.40M | 469.80M | 436.40M | 459.40M |
| Total Liabilities | 607.20M | 620.80M | 667.80M | 668.60M | 637.70M | 651.00M |
| Stockholders Equity | 476.90M | 472.60M | 535.10M | 567.70M | 533.40M | 483.30M |
Cash Flow | ||||||
| Free Cash Flow | -13.30M | 18.80M | 20.40M | 87.70M | -4.40M | 77.50M |
| Operating Cash Flow | 16.10M | 41.70M | 47.30M | 108.40M | 16.90M | 92.60M |
| Investing Cash Flow | 5.60M | 10.30M | -27.50M | -44.90M | -48.40M | -16.20M |
| Financing Cash Flow | -202.40M | -75.90M | -3.30M | -200.00K | -23.80M | -32.30M |
Varex Imaging Technical Analysis
Neutral
13.59
Price Trends
12.06
Negative
12.27
Negative
11.42
Positive
Market Momentum
-0.07
Negative
55.45
Neutral
87.83
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VREX, the sentiment is Neutral. The current price of 13.59 is above the 20-day moving average (MA) of 10.92, above the 50-day MA of 12.06, and above the 200-day MA of 11.42, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 87.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VREX.
Varex Imaging Risk Analysis
Varex Imaging disclosed 30 risk factors in its most recent earnings report. Varex Imaging reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Varex Imaging Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $878.11M | 21.81 | 4.97% | ― | 1.58% | ― | |
61 Neutral | $381.86M | 134.00 | 2.63% | ― | 251.54% | ― | |
60 Neutral | $1.24B | -12.19 | -35.34% | ― | 16.04% | 28.91% | |
56 Neutral | $639.95M | -45.38 | -12.91% | ― | 23.27% | 43.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $165.14M | -4.35 | -32.46% | ― | 15.19% | -3.32% | |
46 Neutral | $493.58M | 52.93 | -13.86% | ― | 4.14% | -45.29% |
* Healthcare Sector Average
VREX
Varex Imaging
12.01
4.80
66.57%
DCTH
Delcath Systems
10.86
-0.48
-4.23%
SIBN
SI-Bone
14.09
0.64
4.76%
BFLY
Butterfly Network
5.45
3.16
137.99%
NNOX
Nano-X Imaging
2.85
-1.90
-40.00%
BVS
Bioventus
10.52
3.02
40.27%
Varex Imaging Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Varex Imaging Refinances Debt With New Credit Facility
Positive
Mar 16, 2026
On March 13, 2026, Varex Imaging Corporation and certain subsidiaries entered a new $490 million secured credit facility maturing in 2031, comprising a $350 million term loan, a $100 million revolving credit line and a $40 million delayed draw ter...
Executive/Board ChangesShareholder Meetings
Varex Imaging Shareholders Back Board, Pay and Auditor
Positive
Feb 13, 2026
At Varex Imaging’s annual meeting held on February 12, 2026, shareholders representing about 92% of eligible common stock were present in person or by proxy, establishing a quorum for all items of business. Investors elected seven directors,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.