Varex Imaging Corporation (VREX)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Varex Imaging Corporation (VREX) trades at $10.56 with AI Score 34/100 (Grade D). Varex Imaging Corporation designs and manufactures X-ray imaging components for medical and industrial applications. Market cap: $444.79M, Sector: Healthcare.
Price live · AI analysis from May 6, 2026VREX stock analysis for 2026: Analysts have set a consensus price target of $14.50 for Varex Imaging Corporation, suggesting 37.2% upside from the current price of $10.56. The AI MoonshotScore is 34/100, indicating a bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
VREX: 1/1 perspectives are bearish.
How is this calculated? →Varex Imaging Corporation (VREX) Healthcare & Pipeline Overview
Varex Imaging Corporation, founded in 2016, specializes in X-ray imaging components for medical and industrial sectors. With a global presence, the company provides X-ray tubes, digital detectors, and image-processing software, serving OEMs, service companies, and end-users. Varex operates with a 34.2% gross margin in the competitive medical device landscape.
What Is the Investment Thesis for VREX?
Varex Imaging Corporation, with a market capitalization of $444.79M, operates in the medical and industrial X-ray imaging component market. A key value driver is the increasing demand for advanced imaging technologies in healthcare and security. Growth catalysts include expanding applications in emerging markets and technological advancements in digital detectors and image processing software. However, the company's negative profit margin of -7.9% poses a risk. The company's beta of 1.00 indicates market correlation. Investors should monitor Varex's ability to improve profitability and capitalize on growth opportunities within the next 2-3 years.
Based on FMP financials and quantitative analysis
VREX Key Highlights
- Market Cap of $444.79M reflects its current valuation in the medical device market.
- Gross Margin of 34.2% indicates the profitability of its core operations.
- Operates in two segments: Medical and Industrial, diversifying its revenue streams.
- Global presence across North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia.
- Employs 2300 individuals, reflecting the scale of its manufacturing and service operations.
Who Are VREX's Competitors?
VREX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| DCTH Delcath Systems, Inc. | $13.48 | +0.00% | $465.35M | 73 |
| PYNKF Perimeter Medical Imaging AI, Inc. | $0.20 | +0.00% | $18.68M | 73 |
| SSII SS Innovations International, Inc. | $3.59 | -3.75% | $718.47M | 72 |
| RSHUF Respiri Limited | $0.06 | +0.00% | $91.52M | 68 |
| AXGN AxoGen, Inc. | $45.33 | -1.39% | $2.41B | 58 |
| AXNX Axonics, Inc. | $70.98 | +0.00% | $3.63B | 58 |
| OWLT Owlet, Inc. | $5.63 | -4.74% | $101.87M | 58 |
| CYBQY CYBERDYNE Inc. | $1.49 | +0.00% | $265.55M | 59 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are VREX's Key Strengths?
- Comprehensive product portfolio in X-ray imaging components.
- Global presence with operations in multiple regions.
- Established relationships with OEMs and service companies.
- Expertise in both medical and industrial applications.
What Are VREX's Weaknesses?
- Negative profit margin (-7.9%).
- Dependence on the cyclical nature of the healthcare and industrial sectors.
- Potential impact from regulatory changes in medical device industry.
- Exposure to currency fluctuations due to global operations.
What Could Drive VREX Stock Higher?
- Potential FDA approvals for new imaging technologies could drive revenue growth.
- Increasing demand for medical imaging in emerging markets.
- Continued investment in R&D for advanced digital detectors.
What Are the Key Risks for VREX?
- Financial-distress signal — its Altman Z-Score of 1.59 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-17.6%) — the business is not currently generating profit on shareholder capital.
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Intense competition in the X-ray imaging market.
- Economic downturns affecting healthcare and industrial spending.
- Negative profit margin impacting financial performance.
- Regulatory changes in the medical device industry.
What Are the Growth Opportunities for VREX?
- Expansion in Emerging Markets: Varex can capitalize on the increasing demand for advanced medical imaging in emerging markets such as India and China. These regions are experiencing rapid growth in healthcare infrastructure, creating opportunities for Varex to expand its sales of X-ray tubes and digital detectors. The market size for medical imaging in emerging markets is projected to reach $35 billion by 2028, offering a substantial growth avenue for Varex over the next 3-5 years.
- Technological Advancements in Digital Detectors: Investing in R&D to develop more advanced digital detectors can provide Varex with a competitive edge. The market for digital detectors is growing due to their superior image quality and lower radiation dose. By introducing innovative detector technologies, Varex can capture a larger share of this market, which is expected to reach $4.2 billion by 2027. This offers a medium-term growth opportunity within the next 2-4 years.
- Increased Demand for Industrial Inspection Solutions: The growing need for security and quality control in industries such as aerospace, automotive, and electronics is driving demand for industrial X-ray inspection solutions. Varex can leverage its expertise in X-ray technology to provide customized solutions for these industries. The industrial inspection market is projected to reach $6.5 billion by 2025, presenting a near-term growth opportunity for Varex.
- Strategic Partnerships with OEMs: Forming strategic partnerships with original equipment manufacturers (OEMs) can enhance Varex's market reach and product integration. By collaborating with leading medical and industrial equipment manufacturers, Varex can ensure that its components are incorporated into their systems, creating a stable demand for its products. These partnerships can be established within the next 1-2 years, leading to long-term revenue growth.
- Development of AI-Powered Image Processing Software: Investing in the development of artificial intelligence (AI)-powered image processing software can enhance the diagnostic capabilities of Varex's imaging systems. AI algorithms can improve image quality, reduce interpretation time, and assist in the detection of subtle anomalies. The market for AI in medical imaging is projected to reach $2 billion by 2026, offering a significant growth opportunity for Varex over the next 2-3 years.
What Opportunities Does VREX Have?
- Expansion in emerging markets with growing healthcare infrastructure.
- Development of advanced digital detector technologies.
- Increased demand for industrial inspection solutions.
- Strategic partnerships with leading medical and industrial equipment manufacturers.
What Threats Does VREX Face?
- Intense competition from established players in the X-ray imaging market.
- Technological obsolescence due to rapid advancements in imaging technologies.
- Economic downturns affecting healthcare and industrial spending.
- Supply chain disruptions impacting component availability and costs.
What Are VREX's Competitive Advantages?
- Established relationships with original equipment manufacturers (OEMs).
- Broad product portfolio covering medical and industrial applications.
- Global sales and service network.
- Technical expertise in X-ray imaging component design and manufacturing.
What Does VREX Do?
Varex Imaging Corporation, established in 2016, is a designer and manufacturer of X-ray imaging components. The company operates through two primary segments: Medical and Industrial. The Medical segment focuses on X-ray imaging components such as X-ray tubes, digital detectors, high voltage connectors, image-processing software, workstations, 3D reconstruction and computer-aided diagnostic software, collimators, automatic exposure control devices, generators, heat exchangers, ionization chambers, and buckys. These products cater to radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, oncology, CT, cardiac, surgery, dental, computer-aided detection, and other diagnostic radiography applications. The Industrial segment provides Linatron X-ray accelerators, X-ray tubes, digital detectors, and high voltage connectors for security and industrial inspection, including airport security, cargo screening, and nondestructive testing. Varex sells its products through original equipment manufacturers, independent service companies, distributors, and directly to end-users across North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Headquartered in Salt Lake City, Utah, Varex Imaging Corporation continues to innovate in the X-ray imaging field.
What Products and Services Does VREX Offer?
- Designs and manufactures X-ray tubes for medical and industrial applications.
- Produces digital detectors used in radiographic and fluoroscopic imaging.
- Offers high voltage connectors for X-ray systems.
- Develops image-processing software and workstations.
- Provides 3D reconstruction and computer-aided diagnostic software.
- Manufactures Linatron X-ray accelerators for security and industrial inspection.
- Sells collimators, automatic exposure control devices, and generators.
How Does VREX Make Money?
- Sells X-ray imaging components to original equipment manufacturers (OEMs).
- Provides products and services to independent service companies.
- Distributes products through a network of distributors.
- Sells directly to end-users in medical and industrial sectors.
What Industry Does VREX Operate In?
Varex Imaging Corporation operates within the medical device industry, which is experiencing growth driven by technological advancements and increasing healthcare spending. The market for X-ray imaging components is competitive, with companies vying for market share through innovation and strategic partnerships. Varex competes with other players in the space by offering a range of products for both medical and industrial applications. The industry is subject to regulatory oversight and technological advancements, requiring continuous innovation to maintain competitiveness.
Who Are VREX's Key Customers?
- Imaging system original equipment manufacturers (OEMs).
- Independent service companies in the medical and industrial fields.
- Hospitals and clinics using X-ray imaging equipment.
- Security and industrial inspection companies.
F-Score 3/9Financial Health
Varex Imaging Corporation's Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 1.59 places it in the distress zone, a signal of elevated financial risk.
ROE -18%Key Financial Metrics
Return on equity for Varex Imaging Corporation stands at -17.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -7.6%, showing how much profit it generates from its asset base. Its free cash flow yield is -6.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.20 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -18.6%, the inverse of the P/E and a quick read on earnings relative to price.
Varex Imaging Corporation (VREX) Valuation Context
Valued at $444.79M, VREX is classified as a small-cap stock. Relative to its peer group, VREX's quantitative score of 34/100 is below the peer average of 69/100.
FY2026 estForward Outlook
Wall Street analysts project Varex Imaging Corporation revenue of about $871.0M for fiscal 2026, with EPS near $0.91. The estimate reflects 4 contributing analysts.
VREX Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Varex insiders seem to be holding steady, which could signal they believe in the long-term prospects of the company. This stability can be reassuring to investors.
- The community is buzzing about potential new applications of Varex's imaging tech in emerging markets. Expansion could be a major growth driver.
- There's a growing sense that healthcare spending will remain robust, and Varex is positioned to benefit from that trend.
- Varex's established position in medical imaging gives it an edge. It's not a startup; it's a player with a proven track record.
Bear Case
- Some community members are worried about increased competition in the imaging components space. New players could eat into Varex's market share.
- There's concern that regulatory hurdles for medical devices could slow down Varex's innovation pipeline. Approvals can be lengthy and costly.
- The overall market sentiment seems cautious lately, and that could drag down even solid companies like Varex. A rising tide lifts all boats, but a falling tide sinks them.
- A few vocal bears in the community are pointing to potential supply chain disruptions affecting Varex's ability to deliver. This is a worry for many companies right now.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
VREX Latest News
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Earnings Scheduled For August 7, 2025
benzinga · Aug 7, 2025
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Earnings Scheduled For August 2, 2022
benzinga · Aug 2, 2022
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Earnings Scheduled For May 3, 2022
benzinga · May 3, 2022
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Stocks That Hit 52-Week Highs On Friday
· Jun 11, 2021
VREX Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for VREX.
Price Targets
Consensus target: $14.50
VREX MoonshotScore
What does this score mean?
The MoonshotScore rates VREX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Sunny S. Sanyal
CEO
Sunny S. Sanyal serves as the CEO of Varex Imaging Corporation. His background includes extensive experience in the technology and healthcare sectors. Prior to Varex, he held leadership positions at various technology companies, focusing on strategic growth and operational efficiency. His expertise spans across product development, market expansion, and financial management. He is known for his strategic vision and ability to drive innovation within organizations.
Track Record: Under Sunny S. Sanyal's leadership, Varex Imaging Corporation has focused on expanding its global presence and enhancing its product portfolio. Key achievements include strengthening relationships with original equipment manufacturers and investing in research and development to develop advanced imaging technologies. He has overseen the company's efforts to navigate the competitive landscape and capitalize on growth opportunities in emerging markets.
Varex Imaging Corporation Healthcare Stock: Key Questions Answered
What does Varex Imaging Corporation do?
Varex Imaging Corporation specializes in designing and manufacturing X-ray imaging components for both medical and industrial sectors. The company's product portfolio includes X-ray tubes, digital detectors, image-processing software, and related components. These products are used in a variety of applications, including diagnostic radiography, radiation therapy, security screening, and industrial inspection. Varex serves original equipment manufacturers, independent service companies, and end-users globally, providing essential components for advanced imaging systems.
What do analysts say about VREX stock?
Analyst coverage of VREX stock focuses on its position in the medical and industrial imaging components market. Key valuation metrics include price-to-earnings ratio, price-to-sales ratio, and enterprise value-to-EBITDA. Growth considerations include the company's ability to expand its market share, innovate in digital detector technology, and improve its profit margins. Analyst consensus typically reflects expectations for revenue growth and profitability improvements over the next 1-2 years, but no specific buy/sell recommendations are available in the provided data.
What are the main risks for VREX?
The main risks for Varex Imaging Corporation include intense competition in the X-ray imaging market, which could pressure pricing and market share. Economic downturns may reduce healthcare and industrial spending, impacting demand for Varex's products. The company's negative profit margin poses a financial risk, requiring improvements in operational efficiency and cost management. Regulatory changes in the medical device industry could also affect the company's operations and product approvals. Supply chain disruptions could impact component availability and costs.
What are the key factors to evaluate for VREX?
Varex Imaging Corporation (VREX) holds an AI score of 34/100 (low). Analysts target $14.50 (+37%). Not financial advice.
How frequently does VREX data refresh on this page?
VREX prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven VREX's recent stock price performance?
Varex Imaging Corporation (VREX) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Comprehensive product portfolio in X-ray imaging components. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider VREX overvalued or undervalued right now?
Valuing Varex Imaging Corporation (VREX) requires multiple metrics. Analysts target $14.50 (+37%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying VREX?
Before investing in Varex Imaging Corporation (VREX), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on provided source data and may not reflect real-time market conditions.
- Financial metrics are based on the most recent available data.