Forensic Analysis · General / Diversified · as of Jun 28, 2026
Varex Imaging Corp (VREX)
A forensic read on Varex Imaging Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.3
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-17.6%
ROE
$433M
Market cap
Varex Imaging Corp earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 3.3, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-3%Return on invested capital.Return on invested capital is -3% and slipping from 7% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
2% of revStock-based comp load.Stock-based compensation ran 2% of revenue and 80% of free cash flow in FY2025 — about $0.36 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
197dInventory days.Days inventory outstanding moved from 174 to 197 FY2024→FY2025 (against cost of goods sold; inventory +13% vs +0% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
-0.2%/yrShare-count dilution.Diluted share count changed -0% over the last 3 years to FY2025 (-0.2%/yr). Roughly flat — buybacks are about offsetting stock comp, not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.
$94MGoodwill impairments.Took $94M of goodwill writedowns across 1 year(s) (FY2025 ($94M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-8.3%
Debt / Equity0.78x
Free Cash Flow$18.8M
Latest Revenue$844.6M
Return on Equity-14.9%
Revenue Growth YoY+4.1%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Varex Imaging Corp:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about VREX's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown