Quality Investor

Varex Imaging Corporation

Rank #252StartupWatchlistCompare with other stocks

VREX · Nasdaq · Healthcare

Varex Imaging Corporation (VREX) — Rank #252 by gross profitability (GP/assets 0.26) · ROE -14.2% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · CIK 0001681622 · all metrics point-in-time as of the filing date.

About

Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components.

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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.

Industry
Medical Devices
Sector
Healthcare
State
DE
Filer Category
Accelerated filer
Fiscal Year End
October 2

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

2,500

Industry

Medical Devices

Exchange

Nasdaq

11/12

Flags passed

VREX fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.26
Return on equity
-14.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.15
Current ratio
3.38×
Net cash
-$247.90M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.8%

Growth

2/2 pass
Revenue growth
4.1%
Piotroski F-Score
5 / 9
Share dilution
1.5%

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 54th percentile of 47 SIC 36 peers

Gross profitability (GP / assets)

0.26

Primary signal (Novy-Marx).

54th pctl of 47 SIC 36 peers

Return on equity

-14.2%

Gross margin

34.4%

20th pctl of 47 SIC 36 peers

Revenue growth (YoY)

4.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-0.6%

Revenue CAGR (5Y)

2.7%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

17.8%

Cash Flow Health

Is the cash real?

No warning flags · FCF 127% above net income

Free cash flow

$18.80M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

126.7%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.8%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $247.90M, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.15

27th pctl of 45 SIC 36 peers (best = lowest)

Current ratio

3.38×

70th pctl of 47 SIC 36 peers

Quick ratio

1.30×

Net cash

-$247.90M

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend
1.5%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
2.8%4/5 Strong

Lifecycle Phase History

20202025
Decline
Op. Leverage
Value
Startup

Price History

VREX-35.3% · -8.3% CAGRSPY+82.9% · +12.8% CAGR