Varian Medical Systems, Inc. [NYSE:VAR]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Varian Medical Systems, Inc. [VAR], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in September. On average, stock market experts give VAR an Outperform rating. Its stock price has been found in the range of 42.96 to 60.70. This is compared to its latest closing price of $130.43.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Varian Medical Systems, Inc. [VAR] is sitting at 2.40. This is compared to 1 month ago, when its average rating was 2.40.
For the quarter ending in Dec-18 Varian Medical Systems, Inc. [VAR] generated $0.74 billion in sales. That’s 3.23% higher than the average estimate of $0.72 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 24 Apr (In 72 Days).
Fundamental Analysis of Varian Medical Systems, Inc. [VAR]
Now let’s turn to look at profitability: with a current Operating Margin for Varian Medical Systems, Inc. [VAR] sitting at +16.50 and its Gross Margin at +45.55, this company’s Net Margin is now 12.30%. These measurements indicate that Varian Medical Systems, Inc. [VAR] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 28.03, and its Return on Invested Capital has reached 21.90%. Its Return on Equity is 9.74, and its Return on Assets is 4.66. These metrics all suggest that Varian Medical Systems, Inc. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 20.52. The Enterprise Value to Sales for this firm is now 3.82. Varian Medical Systems, Inc. [VAR] has a Price to Book Ratio of 6.44, a Price to Cash Flow Ratio of 23.23 and P/E Ratio of 33.18. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Varian Medical Systems, Inc. [VAR] earns $407,025 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.01 and its Total Asset Turnover is 0.91. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.29 and its Current Ratio is 1.63. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Varian Medical Systems, Inc. [VAR] has 91.00M shares outstanding, amounting to a total market cap of $11.95B. Its stock price has been found in the range of 101.42 to 133.31. At its current price, it has moved by -1.46% from its 52-week high, and it has moved 29.52% from its 52-week low.
This stock’s Beta value is currently 0.86, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.26. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Varian Medical Systems, Inc. [VAR] a Reliable Buy?
Shares of Varian Medical Systems, Inc. [VAR], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.