Varex Imaging (VREX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Varex Imaging

NasdaqGS•Healthcare•Medical Devices

$18.51-0.01(<0.01%)Market closed

Market Cap

$778.43M

P/E

35.2x

P/S

0.9x

P/B

1.6x

Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components. It operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components, comprising X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. This segment's products are used in a range of applications, including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses. The Industrial segment designs, develops, manufactures, sells, and services Linatron X-ray linear accelerators, non-intrusive cargo inspection systems, X-ray tubes, digital detectors, high voltage connectors, and coolers for use in security and inspection applications, such as baggage screening at airports, cargo screening at ports and borders, and nondestructive testing, irradiation, and inspection in various applications. It sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, Latin America, Europe, the Middle East, India, Africa, Asia, and Australia. The company was incorporated in 2016 and is headquartered in Salt Lake City, Utah.

How this company scores

AverageMetricSide Score: 59/100

Strongest: Growth (19/25); weakest: Cash & Earnings Quality (8/25).

Profitability15/25

Growth19/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality8/25

Strengths

Rising earningsProfit converts from growthImproving leverageConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 35.2x5y range 15.9x – 64.0x

Currently near its 13-quarter median.

P/S · 0.9x5y range 0.4x – 1.5x

Currently near its 20-quarter median.

P/B · 1.6x5y range 0.8x – 2.6x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -3.3x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $778.43M

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $865.00M
Q. Revenue: $210.50M
TTM EBITDA: $99.50M
TTM Op. Income: $72.20M
Q. Op. Income: $22.80M
TTM Net Income: $22.10M
Q. Net Income: $15.70M
EPS: $0.37
Shares Out.: $42.10M

$865.00M in TTM revenue grew 5.3% YoY, reaching $210.50M last quarter. TTM EBITDA of $99.50M and TTM operating income of $72.20M show growth is flowing through to the bottom line. TTM net income of $22.10M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 36.4%
EBITDA Margin: 14.2%
Op. Margin: 10.8%
Net Margin: 7.5%

Op. margin of 10.8% is up 50.6% YoY — cost efficiency is improving. Net margin at 7.5% and gross margin of 36.4% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 127% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 35.2x
P/S Ratio: 0.9x
P/B Ratio: 1.6x

At 35.2x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.9x and P/B of 1.6x provide additional context. Use the growth and margin sections to judge whether the multiple is justified.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.10B
Cash: $99.20M
Long-Term Debt: $328.90M
Book Value: $496.60M
D/E Ratio: 0.7
Debt/EBITDA: 11.0

With $1.10B in assets and $328.90M in long-term debt, D/E is 0.7and book value is $496.60M — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 6 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $21.00M
TTM Free Cash Flow: $-20.20M
FCF Margin: -2.3%
FCF / Net Income: -0.9

TTM FCF of $-20.20M on $21.00M in operating cash flow. The FCF / Net Income ratio of -0.9x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 155% — an improving trend.