Varex Imaging Corporation Common Stock (VREX)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor first, so I ask whether this is a durable business at a fair price. Varex sells X-ray components for medical and industrial imaging, a business with technical requirements and service relationships. But the numbers show a troubled record: in FY2025, the year ended 2025-10-03, revenue was $844.6M and net loss was $70.3M, or -$1.70 per diluted share. That followed a net loss of $48.8M in FY2024, the year ended 2024-09-27, and contrasts with net income of $47.4M, or $1.07 per share, in FY2023, the year ended 2023-09-29. FY2025 revenue was modestly above FY2024 revenue, but profit swung deeply negative. FairStock’s calculations show ROE of 4.59%, ROCE of 4.15%, and D/E of 0.74; those are not the returns of a wide-moat compounder. Free cash flow is -$20.2M, a -2.6% FCF yield, so the company is currently consuming cash. The latest filed quarter offers a glimmer: in fiscal Q3 2026, the quarter ended 2026-07-03, revenue was $210.5M, net income was $15.7M, and diluted EPS was $0.37, versus a net loss of $89.1M in fiscal Q3 2025, the quarter ended 2025-07-04. Piotroski is 7/9, suggesting some improvement. Yet Altman Z-Score is 1.54, which is weak. At $18.47 on 2026-10-13, FairStock calculates P/E of 34.85, P/B of 1.57, and a Graham Number of $11.85, implying a -55.86% margin of safety—so the price is not cheap on asset value or earnings. FairStock classifies it as a TURNAROUND because of the latest-year loss after earlier profits. I would want evidence of sustained positive earnings and cash generation before calling this a bargain.

In plain English: Varex makes X-ray imaging parts for medical and industrial equipment. The business has been weak: it lost money in recent years and is using more cash than it brings in, though the latest quarter showed a profit. At the recent price of $18.47, the shares look expensive compared with its earnings and asset value, so it looks like a turnaround that still needs to prove itself.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-03) · fiscal Q2 2026 10-Q (period ended 2026-04-03) · fiscal Q1 2026 10-Q (period ended 2026-01-02) · fiscal Q3 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2025-10-03) · FY2024 10-K (period ended 2024-09-27) · FY2023 10-K (period ended 2023-09-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer