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Varex Imaging Corporation is a leading innovator, designer and manufacturer of X-ray imaging components including X-ray tubes, flat panel and photon counting detectors and accessories, linear accelerators, image software processing solutions, and stand-alone X-ray based systems in select application areas. Our components are used in medical diagnostic imaging, security inspection systems, and i…
The business is unprofitable at the operating level (-3.29% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 4.1%, steady but not accelerating. Margins contracted 7.2pp, which offsets some of the top-line progress.
ROIC dropped from 2.47% to -2.33%, capital efficiency is deteriorating. Net debt of $247M represents 13.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$858M
▲ +4.1% YoY
Net Income (TTM)
-$83M
▼ -44.1% YoY
Op. Margin
-3.65%
▼ -7.2pp YoY
ROIC
-2.86%
▼ -4.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$31M
▼ -7.8% YoY
Op. Cash Flow (TTM)
-$2M
▼ -11.8% YoY
Net Debt
$293M
Cash & Equiv.
$88M
5Y CAGR: +2.7%
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