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Varex Imaging
(NASDAQ:VREX)
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Rating:60Neutral
Price Target:
$19.50
▲(5.41% Upside)
Action:Reiterated
Date:09/09/26
The score is held back primarily by weak cash conversion (negative TTM free cash flow despite a return to accounting profitability) and a high P/E valuation. These are partially offset by the announced all-cash acquisition, which supports near-term price anchoring, and a strong uptrend in moving averages—though technicals are tempered by an extremely overbought RSI.
Positive Factors
Advanced Imaging Pipeline
CT and photon-counting adoption can deepen Varex’s OEM relationships and expand content per imaging system. Engagement with multiple CT and modality OEMs supports a multi-quarter pipeline, while differentiated detector technology may reinforce its position in advanced imaging.
Negative Factors
Weak Cash Conversion
TTM operating cash flow was only about $11M and free cash flow was negative $20M, versus strong 2023 cash generation. Persistent working-capital or capex demands could limit reinvestment, debt reduction and resilience even after accounting profitability returned.
Read all positive and negative factors
Positive Factors
Negative Factors
Advanced Imaging Pipeline
CT and photon-counting adoption can deepen Varex’s OEM relationships and expand content per imaging system. Engagement with multiple CT and modality OEMs supports a multi-quarter pipeline, while differentiated detector technology may reinforce its position in advanced imaging.
Read all positive factors
Varex Imaging (VREX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$780.16M
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)35.3
Beta (1Y)2.16
Revenue Growth5.31%
EPS GrowthN/A
CountryUS
Employees2,500
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.53
Shares Outstanding42,148,254
10 Day Avg. Volume651,772
30 Day Avg. Volume1,169,754
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$18.92Price Target Upside2.30% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.89
Revenue Forecast (FY)$867.22M
Varex Imaging Business Overview & Revenue Model
Company Description
Varex Imaging Corporation (VREX) specializes in the development and production of X-ray imaging components. Its operations are divided into two primary divisions: Medical and Industrial. Within the Medical segment, Varex provides a comprehensive r...
How the Company Makes Money
Varex primarily makes money by selling imaging components and subsystems—most notably X-ray tubes and flat panel detectors—to OEM customers that build complete imaging systems for hospitals, clinics, and industrial inspection markets. Revenue is g...
Varex Imaging Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 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
64
Positive
Balance Sheet
62
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 865.00M | 844.60M | 811.00M | 893.40M | 859.40M | 818.10M |
| Gross Profit | 296.90M | 290.50M | 256.90M | 290.30M | 283.50M | 271.50M |
| EBITDA | 86.90M | 3.50M | 62.90M | 94.70M | 114.50M | 104.50M |
| Net Income | 22.10M | -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 | 99.20M | 155.10M | 200.50M | 193.90M | 89.40M | 144.60M |
| Total Debt | 373.60M | 401.90M | 470.40M | 469.80M | 436.40M | 459.40M |
| Total Liabilities | 589.50M | 620.80M | 667.80M | 668.60M | 637.70M | 651.00M |
| Stockholders Equity | 496.60M | 472.60M | 535.10M | 567.70M | 533.40M | 483.30M |
Cash Flow | ||||||
| Free Cash Flow | -20.20M | 18.80M | 20.40M | 87.70M | -4.40M | 77.50M |
| Operating Cash Flow | 11.30M | 41.70M | 47.30M | 108.40M | 16.90M | 92.60M |
| Investing Cash Flow | -17.80M | 10.30M | -27.50M | -44.90M | -48.40M | -16.20M |
| Financing Cash Flow | -31.00M | -75.90M | -3.30M | -200.00K | -23.80M | -32.30M |
Varex Imaging Technical Analysis
Positive
18.50
Price Trends
13.99
Positive
12.39
Positive
12.32
Positive
Market Momentum
1.31
Positive
88.44
Negative
55.56
Neutral
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 18.5 is above the 20-day moving average (MA) of 18.49, above the 50-day MA of 13.99, and above the 200-day MA of 12.32, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 88.44 is Negative, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, 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 36 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.18B | 17.51 | 28.39% | ― | 3.14% | ― | |
70 Outperform | $571.84M | 1,498.18 | 0.46% | ― | 35.85% | -76.27% | |
63 Neutral | $829.14M | -54.44 | -8.23% | ― | 15.30% | 40.66% | |
62 Neutral | $2.00B | -25.43 | -38.36% | ― | 28.14% | -5.15% | |
60 Neutral | $780.16M | 35.26 | 4.60% | ― | 5.31% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $65.21M | -0.73 | -51.88% | ― | 25.74% | -26.25% |
* Healthcare Sector Average
VREX
Varex Imaging
18.51
6.92
59.71%
DCTH
Delcath Systems
16.48
4.88
42.07%
SIBN
SI-Bone
18.50
2.46
15.34%
BFLY
Butterfly Network
7.36
5.78
365.82%
NNOX
Nano-X Imaging
0.83
-3.16
-79.22%
BVS
Bioventus
14.07
6.80
93.54%
Varex Imaging Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Varex Imaging Agrees to Teledyne All-Cash Acquisition
Positive
Aug 10, 2026
On August 10, 2026, Varex Imaging entered into a definitive merger agreement under which Teledyne Technologies will acquire all outstanding Varex shares for $18.90 in cash per share, valuing the deal at about $1.1 billion including equity awards a...
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.