Varex Imaging Corporation (VREX)
NASDAQ:VREX
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Varex Imaging
(NASDAQ:VREX)
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Rating:47Neutral
Price Target:
$9.50
▼(-30.10% Downside)
Action:ReiteratedDate:05/09/26
The score is held down primarily by weak financial performance (loss-making and negative free cash flow) and bearish technicals (trading below key moving averages with negative MACD). Partially offsetting this, management reiterated full-year guidance and highlighted margin execution, refinancing benefits, and product/industrial pipeline momentum; valuation provides limited support due to negative earnings and no dividend yield data.
Positive Factors
Capital structure improvement
Refinancing replaces higher‑cost 2027 notes with a longer‑dated facility and a hedged rate, lowering annual interest expense and extending maturities. This materially improves financial flexibility for multi‑quarter investments, reduces refinancing risk and supports durable liquidity planning.
Negative Factors
Negative cash generation
A reversal to negative OCF and notably negative FCF reduces the company's ability to self‑fund growth, invest in R&D or weather demand cycles. If persistent, cash burn increases reliance on external financing and constrains durable capital allocation decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital structure improvement
Refinancing replaces higher‑cost 2027 notes with a longer‑dated facility and a hedged rate, lowering annual interest expense and extending maturities. This materially improves financial flexibility for multi‑quarter investments, reduces refinancing risk and supports durable liquidity planning.
Read all positive factors
Varex Imaging (VREX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$413.84M
Dividend YieldN/A
Average Volume (3M)297.70K
Price to Earnings (P/E)―
Beta (1Y)2.15
Revenue Growth3.63%
EPS Growth-93.57%
CountryUS
Employees2,300
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.00
Shares Outstanding42,100,000
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 Cap0.91
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.30
Enterprise Value/Ebitda374.84
Forecast
1Y Price Target
$18.00Price Target Upside32.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.91
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:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call highlighted solid execution on guidance, margin resilience (non‑GAAP gross margin at the high end), successful debt refinancing and clear technology and industrial pipeline momentum (CT, photon-counting, cargo systems). Offsetting these positives are modest top‑line growth (+1% YoY), a GAAP loss, margin erosion versus the prior year (down ~240 bps), elevated inventory and short‑term working capital pressures. Management provided multi-quarter visibility (annual guidance) and actions (India ramp, pricing/contract renewal levers) that could improve margins over time, but near-term growth and margin recovery remain modest.Positive Updates
Revenue Within Guidance and Continued Demand
Q2 revenue of $216 million came in within guidance; total revenue increased 1% year-over-year, driven by medical (+2%) and industrial (+1%). Medical represented $156M (72% of total) and Industrial $60M (28%).
Negative Updates
Modest Top-Line Growth and Geographic Weakness
Overall revenue growth was modest at +1% YoY; EMEA sales declined 16% YoY, and company acknowledged lumpy industrial shipment patterns tied to prior-year large orders.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Within Guidance and Continued Demand
Q2 revenue of $216 million came in within guidance; total revenue increased 1% year-over-year, driven by medical (+2%) and industrial (+1%). Medical represented $156M (72% of total) and Industrial $60M (28%).
Read all positive updates
Company Guidance
Varex guided that second‑half fiscal 2026 revenue should be up roughly 3% year‑over‑year (guidance excludes any IEEPA tariff refund) and reiterated full‑year fiscal 2026 revenues of $860–$880 million with non‑GAAP EPS of $0.80–$1.00; Q3 guidance is $210–$225 million of revenue and non‑GAAP diluted EPS of $0.15–$0.30, based on non‑GAAP gross margin of 33–34%, non‑GAAP operating expenses of about $54 million, net interest and other expense of $6–$7 million, a Q3 tax rate of ~23% (full‑year tax expectation ~20%), and roughly 42 million diluted non‑GAAP shares outstanding, and management said it will resume providing annual guidance going forward.Varex Imaging Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 857.50M | 844.60M | 811.00M | 893.40M | 859.40M | 818.10M |
| Gross Profit | 287.70M | 290.50M | 256.90M | 290.30M | 283.50M | 271.50M |
| EBITDA | 1.00M | 3.50M | 62.90M | 94.70M | 114.50M | 104.50M |
| Net Income | -82.70M | -70.30M | -47.70M | 48.20M | 30.30M | 17.40M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.11B | 1.22B | 1.25B | 1.18B | 1.15B |
| Cash, Cash Equivalents and Short-Term Investments | 88.30M | 155.10M | 200.50M | 193.90M | 89.40M | 144.60M |
| Total Debt | 46.30M | 401.90M | 470.40M | 469.80M | 436.40M | 459.40M |
| Total Liabilities | 601.30M | 620.80M | 667.80M | 668.60M | 637.70M | 651.00M |
| Stockholders Equity | 474.20M | 472.60M | 535.10M | 567.70M | 533.40M | 483.30M |
Cash Flow | ||||||
| Free Cash Flow | -30.80M | 18.80M | 20.40M | 87.70M | -4.40M | 77.50M |
| Operating Cash Flow | -2.00M | 41.70M | 47.30M | 108.40M | 16.90M | 92.60M |
| Investing Cash Flow | -12.20M | 10.30M | -27.50M | -44.90M | -48.40M | -16.20M |
| Financing Cash Flow | -231.00M | -75.90M | -3.30M | -200.00K | -23.80M | -32.30M |
Varex Imaging Technical Analysis
Positive
13.59
Price Trends
12.02
Negative
12.28
Negative
11.44
Positive
Market Momentum
>-0.01
Negative
61.84
Neutral
86.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VREX, the sentiment is Positive. The current price of 13.59 is above the 20-day moving average (MA) of 10.96, above the 50-day MA of 12.02, and above the 200-day MA of 11.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $875.96M | 48.32 | 16.27% | ― | 1.52% | ― | |
70 Outperform | $396.31M | -78.10 | 0.51% | ― | 67.95% | ― | |
56 Neutral | $542.87M | -130.15 | -11.00% | ― | 20.19% | 40.88% | |
52 Neutral | $1.09B | -20.44 | -36.79% | ― | 20.20% | -0.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $413.84M | -13.58 | -17.61% | ― | 3.63% | -93.57% | |
47 Neutral | $120.39M | -1.41 | -47.09% | ― | 15.40% | -25.87% |
* Healthcare Sector Average
VREX
Varex Imaging
9.83
2.31
30.72%
DCTH
Delcath Systems
11.48
-2.97
-20.55%
SIBN
SI-Bone
12.27
-6.51
-34.66%
BFLY
Butterfly Network
4.16
1.81
77.02%
NNOX
Nano-X Imaging
1.73
-3.83
-68.88%
BVS
Bioventus
10.50
3.76
55.79%
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.