📊 VREX Key Takeaways
Is Varex Imaging Corp (VREX) a Good Investment?
Varex Imaging faces significant operational headwinds with negative operating cash flow of -$16.1M and free cash flow of -$26.8M despite 4.1% revenue growth, indicating poor cash generation and working capital deterioration. The company's interest coverage ratio of 1.0x leaves minimal buffer for debt service, while declining net income (-0.6% YoY) and EPS (-41.7% YoY) combined with extremely thin net margins (1.1%) demonstrate fundamental profitability challenges and near-zero capital returns.
Why Buy Varex Imaging Corp Stock? VREX Key Strengths
- Strong liquidity position with current ratio of 3.89x and quick ratio of 1.87x provides near-term operational flexibility
- Modest revenue growth of 4.1% YoY and reasonable gross margin of 33.3% provide some operational foundation
- Moderate leverage with debt-to-equity of 0.77x prevents excessive balance sheet risk despite cash flow stress
VREX Stock Risks: Varex Imaging Corp Investment Risks
- Critical interest coverage ratio of 1.0x leaves virtually no buffer for debt service; operational deterioration could trigger acute refinancing or default risk
- Negative operating cash flow (-$16.1M) and free cash flow (-$26.8M) indicate fundamental cash generation failure despite positive accounting earnings
- Declining profitability (net income -0.6% YoY, EPS -41.7% YoY) with extremely low returns on capital (ROE 0.5%, ROA 0.2%) demonstrate structural margin compression and capital inefficiency
Key Metrics to Watch
- Operating cash flow inflection point - must return to positive territory to validate fundamental viability
- Interest coverage ratio trend - any decline below 1.0x signals acute financial distress
- Net margin stability and EPS recovery - essential indicators of operational efficiency and debt service sustainability
Varex Imaging Corp (VREX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.89x 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $214.5M | $8.2M | $0.20 |
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 rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VREX's key strengths?
Claude: Strong liquidity position with current ratio of 3.89x and quick ratio of 1.87x provides near-term operational flexibility. Modest revenue growth of 4.1% YoY and reasonable gross margin of 33.3% provide some operational foundation.
What are the risks of investing in VREX?
Claude: Critical interest coverage ratio of 1.0x leaves virtually no buffer for debt service; operational deterioration could trigger acute refinancing or default risk. Negative operating cash flow (-$16.1M) and free cash flow (-$26.8M) indicate fundamental cash generation failure despite positive accounting earnings.
What is VREX's revenue and growth?
Varex Imaging Corp reported revenue of $209.6M.
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 $0.05.
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 rating reflects both perspectives for balanced insights.
Is VREX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Varex Imaging Corp has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VREX stock overvalued or undervalued?
Valuation metrics for VREX: ROE of 0.5% (sector avg: 22%), net margin of 1.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy VREX stock in 2026?
Our dual AI analysis gives Varex Imaging Corp a combined SELL rating 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 $-16.1M, with capital expenditures of $10.7M. FCF margin is -12.8%.
How does VREX compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.1% (avg: 18%), ROE 0.5% (avg: 22%), current ratio 3.89 (avg: 2.5).