VREXVarex Imaging Corporation
Is the business good?
The checks split: nothing decisive, though thin cash backing (0.2×).
Operating profit outpaces operating cash flow, watch accruals and working capital.
Margins have held roughly steady, a stable cost structure.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VREX?
Varex Imaging Corporation earns 7.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.3 points below what the capital costs: growth destroys value
- Operating margin
- 8.3%
Operating margin · Medical Devices median 0.61% · 12 months to Q3 2026
- Cash conversion
- 0.19×
Cash conversion · the operating profit has not turned into cash yet
- Share count, year on year
- +2.6%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −4.6% |
| FY2021 | 9.1% |
| FY2022 | 10% |
| FY2023 | 8.6% |
| FY2024 | 4.0% |
| FY2025 | −3.3% |
Details›
- Gross margin12 months to Q3 2026
- 34%
- Operating margin12 months to Q3 2026
- 8.3%
- Net margin12 months to Q3 2026
- 2.5%
- Free cash flow margin
- −2.3%
- R&D as % of revenue
- 11%
- Revenue, trailing twelve months
- $865M
- Free cash flow, trailing twelve months
- −$20M
- Net income, trailing twelve months
- $22M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from VREX and who it buys from, as the companies report it.
- Canon Medical Systems18%
Share of revenue · FY2025 10-K
- Ten largest customers52%
Combined share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; VREX’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.