📊 VREX Key Takeaways
Is Varex Imaging Corp (VREX) a Good Investment?
Varex Imaging exhibits critical operational distress with net losses, negative operating cash flow of -$17.6M, and sharply deteriorating earnings (EPS down 41.7% YoY) despite modest revenue growth. At current cash burn rates of -$34.5M annually, the company has approximately 2.5 years of cash runway, while weak interest coverage of 2.0x creates material refinancing risk.
Varex Imaging Corp Key Strengths (VREX)
- Strong liquidity position with current ratio of 3.20x and quick ratio of 1.43x
- Modest revenue growth of 4.1% YoY indicates retained market demand
- Reasonable gross margin of 33.5% demonstrates viable underlying product economics
- Moderate leverage with debt-to-equity ratio of 0.73x
VREX Stock Risks: Varex Imaging Corp Investment Risks
- Unprofitable with -$5.8M net income and deteriorating EPS (-41.7% YoY)
- Negative operating cash flow (-$17.6M) reveals core business cannot generate cash
- Severely negative free cash flow (-$34.5M) with -8.1% FCF margin is unsustainable
- Weak interest coverage of 2.0x indicates limited debt service flexibility and high refinancing risk
- Limited cash reserves ($85.3M) relative to annual cash burn; at current pace, exhaustion in ~2.5 years without operational turnaround
Key Metrics to Watch
- Operating cash flow - must turn positive to validate business viability
- Path and timeline to profitability at net income level
- Interest coverage ratio - needs improvement to >3.0x to reduce financial distress signal
- Cash burn rate and cash reserve depletion trajectory
- Debt refinancing terms and upcoming maturity schedule
Varex Imaging Corp (VREX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.20x current ratio provides a solid financial cushion.
VREX Profit Margin, ROE & Profitability Analysis
VREX vs Technology Sector: How Varex Imaging Corp Compares
How Varex Imaging Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Varex Imaging Corp Stock Overvalued? VREX Valuation Analysis 2026
Based on fundamental analysis, Varex Imaging Corp shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Varex Imaging Corp Balance Sheet: VREX Debt, Cash & Liquidity
VREX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Varex Imaging Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.07 reflects profitable operations.
VREX Revenue Growth, EPS Growth & YoY Performance
VREX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $212.9M | -$5.8M | $-0.14 |
| Q1 2026 | $199.8M | -$300.0K | $-0.01 |
| Q3 2025 | $203.0M | $1.4M | $0.03 |
| Q2 2025 | $206.2M | $900.0K | $0.02 |
| Q1 2025 | $190.0M | -$300.0K | $-0.01 |
| Q3 2024 | $209.1M | $1.4M | $0.03 |
| Q2 2024 | $206.2M | $900.0K | $0.02 |
| Q1 2024 | $190.0M | -$500.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Varex Imaging Corp Dividends, Buybacks & Capital Allocation
VREX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Varex Imaging Corp (CIK: 0001681622)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VREX
What is the AI rating for VREX?
Varex Imaging Corp (VREX) has an AI grade of C with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VREX's key strengths?
Claude: Strong liquidity position with current ratio of 3.20x and quick ratio of 1.43x. Modest revenue growth of 4.1% YoY indicates retained market demand.
What are the risks of investing in VREX?
Claude: Unprofitable with -$5.8M net income and deteriorating EPS (-41.7% YoY). Negative operating cash flow (-$17.6M) reveals core business cannot generate cash.
What is VREX's revenue and growth?
Varex Imaging Corp reported revenue of $425.6M.
Does VREX pay dividends?
Varex Imaging Corp does not currently pay dividends.
Where can I find VREX SEC filings?
Official SEC filings for Varex Imaging Corp (CIK: 0001681622) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VREX's EPS?
Varex Imaging Corp has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VREX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Varex Imaging Corp has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VREX stock overvalued or undervalued?
Valuation metrics for VREX: ROE of -1.2% (sector avg: 22%), net margin of -1.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is VREX's AI grade for 2026?
Our dual AI analysis gives Varex Imaging Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VREX's free cash flow?
Varex Imaging Corp's operating cash flow is $-17.6M, with capital expenditures of $16.9M. FCF margin is -8.1%.
How does VREX compare to other Technology stocks?
Vs Technology sector averages: Net margin -1.4% (avg: 18%), ROE -1.2% (avg: 22%), current ratio 3.20 (avg: 2.5).