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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 2.17
VAR's Cash to Debt is ranked higher than
70% of the 291 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.74 vs. VAR: 2.17 )
VAR' s 10-Year Cash to Debt Range
Min: 0.24   Max: No Debt
Current: 2.17

Equity to Asset 0.50
VAR's Equity to Asset is ranked higher than
59% of the 285 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 0.63 vs. VAR: 0.50 )
VAR' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.6
Current: 0.5

0.32
0.6
Interest Coverage 147.47
VAR's Interest Coverage is ranked higher than
80% of the 194 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 22.61 vs. VAR: 147.47 )
VAR' s 10-Year Interest Coverage Range
Min: 4.34   Max: 226.41
Current: 147.47

4.34
226.41
F-Score: 5
Z-Score: 5.34
M-Score: -2.39
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 20.69
VAR's Operating margin (%) is ranked higher than
90% of the 287 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 9.44 vs. VAR: 20.69 )
VAR' s 10-Year Operating margin (%) Range
Min: 7.09   Max: 22.67
Current: 20.69

7.09
22.67
Net-margin (%) 14.89
VAR's Net-margin (%) is ranked higher than
87% of the 287 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 7.65 vs. VAR: 14.89 )
VAR' s 10-Year Net-margin (%) Range
Min: -4.1   Max: 15.36
Current: 14.89

-4.1
15.36
ROE (%) 25.57
VAR's ROE (%) is ranked higher than
96% of the 283 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 8.68 vs. VAR: 25.57 )
VAR' s 10-Year ROE (%) Range
Min: -13.08   Max: 35.27
Current: 25.57

-13.08
35.27
ROA (%) 12.64
VAR's ROA (%) is ranked higher than
92% of the 290 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 4.24 vs. VAR: 12.64 )
VAR' s 10-Year ROA (%) Range
Min: -4.49   Max: 16.21
Current: 12.64

-4.49
16.21
ROC (Joel Greenblatt) (%) 82.82
VAR's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 288 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 22.38 vs. VAR: 82.82 )
VAR' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 8.6   Max: 148.44
Current: 82.82

8.6
148.44
Revenue Growth (%) 12.10
VAR's Revenue Growth (%) is ranked higher than
85% of the 248 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 5.70 vs. VAR: 12.10 )
VAR' s 10-Year Revenue Growth (%) Range
Min: -27.1   Max: 17.4
Current: 12.1

-27.1
17.4
EBITDA Growth (%) 9.30
VAR's EBITDA Growth (%) is ranked higher than
78% of the 210 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 6.40 vs. VAR: 9.30 )
VAR' s 10-Year EBITDA Growth (%) Range
Min: -47.7   Max: 65.8
Current: 9.3

-47.7
65.8
EPS Growth (%) 10.40
VAR's EPS Growth (%) is ranked higher than
80% of the 220 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 5.90 vs. VAR: 10.40 )
VAR' s 10-Year EPS Growth (%) Range
Min: -58.1   Max: 112.3
Current: 10.4

-58.1
112.3
» VAR's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

VAR Guru Trades in Q1 2013

Paul Tudor Jones 2,900 sh (New)
Jim Simons 302,500 sh (New)
Ray Dalio 43,827 sh (New)
CI Can Am Small Cap 74,000 sh (New)
Joel Greenblatt 47,672 sh (+65.73%)
Steven Cohen 11,164 sh (+54.37%)
David Rolfe 1,826,581 sh (+23.43%)
Jeremy Grantham 179,229 sh (+2.17%)
First Pacific Advisors 90,400 sh (+0.44%)
Westport Asset Management 285,000 sh (unchged)
John Hussman Sold Out
Mario Gabelli 5,275 sh (-1.49%)
» More
Q2 2013

VAR Guru Trades in Q2 2013

Andreas Halvorsen 317,605 sh (New)
First Pacific Advisors 175,500 sh (+94.14%)
Ray Dalio 60,756 sh (+38.63%)
Paul Tudor Jones 3,700 sh (+27.59%)
David Rolfe 2,063,703 sh (+12.98%)
Westport Asset Management 285,000 sh (unchged)
Mario Gabelli Sold Out
Jim Simons Sold Out
Joel Greenblatt 43,801 sh (-8.12%)
Jeremy Grantham 146,929 sh (-18.02%)
Steven Cohen 3,665 sh (-67.17%)
» More
Q3 2013

VAR Guru Trades in Q3 2013

Charles Brandes 122,218 sh (New)
Robert Karr 305,000 sh (New)
Louis Moore Bacon 10,000 sh (New)
John Hussman 100,000 sh (New)
Paul Tudor Jones 75,200 sh (+1932.43%)
Steven Cohen 27,186 sh (+641.77%)
David Rolfe 2,172,559 sh (+5.27%)
Jeremy Grantham 154,629 sh (+5.24%)
Joel Greenblatt 45,586 sh (+4.08%)
Westport Asset Management 285,000 sh (unchged)
CI Can Am Small Cap 74,000 sh (unchged)
First Pacific Advisors 175,500 sh (unchged)
Andreas Halvorsen Sold Out
Ray Dalio 36,912 sh (-39.25%)
» More
Q4 2013

VAR Guru Trades in Q4 2013

Ray Dalio 39,598 sh (+7.28%)
Charles Brandes 129,772 sh (+6.18%)
David Rolfe 2,279,191 sh (+4.91%)
Robert Karr 305,000 sh (unchged)
Westport Asset Management 285,000 sh (unchged)
John Hussman Sold Out
Louis Moore Bacon Sold Out
Joel Greenblatt 45,154 sh (-0.95%)
Jeremy Grantham 140,763 sh (-8.97%)
First Pacific Advisors 129,700 sh (-26.1%)
Steven Cohen 19,139 sh (-29.6%)
Paul Tudor Jones 5,311 sh (-92.94%)
» More
» Details

Insider Trades

Latest Guru Trades with VAR

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Hussman 2013-12-31 Sold Out 0.41%$72.5 - $79.84 $ 80.286%0
John Hussman 2013-09-30 New Buy0.41%$66.3 - $76.27 $ 80.2811%100000
Charles Brandes 2013-09-30 New Buy0.12%$66.3 - $76.27 $ 80.2811%122218
Ray Dalio 2013-09-30 Reduce -39.25%0.01%$66.3 - $76.27 $ 80.2811%36912
Ray Dalio 2013-06-30 Add 38.63%0.01%$64.02 - $72.78 $ 80.2818%60756
Mario Gabelli 2013-06-30 Sold Out $64.02 - $72.78 $ 80.2818%0
John Hussman 2013-03-31 Sold Out 0.25%$68.66 - $75.25 $ 80.2811%0
Joel Greenblatt 2013-03-31 Add 65.73%0.07%$68.66 - $75.25 $ 80.2811%47672
Ray Dalio 2013-03-31 New Buy0.03%$68.66 - $75.25 $ 80.2811%43827
John Hussman 2012-12-31 Reduce -46.8%0.17%$57.08 - $72.35 $ 80.2821%133000
Joel Greenblatt 2012-12-31 Reduce -33.84%0.06%$57.08 - $72.35 $ 80.2821%28764
Mario Gabelli 2012-12-31 Reduce -30.95%$57.08 - $72.35 $ 80.2821%5355
John Hussman 2012-09-30 Reduce -80%1.12%$53.73 - $61.76 $ 80.2837%250000
Joel Greenblatt 2012-09-30 Add 130.72%0.1%$53.73 - $61.76 $ 80.2837%43476
Joel Greenblatt 2012-06-30 New Buy0.08%$57.15 - $68.81 $ 80.2827%18844
Ray Dalio 2012-06-30 Sold Out 0.04%$57.15 - $68.81 $ 80.2827%0
Ray Dalio 2012-03-31 New Buy0.04%$64.48 - $71.7 $ 80.2826%40865
Ray Dalio 2011-12-31 Sold Out 0.15%$50.1 - $67.13 $ 80.2835%0
Joel Greenblatt 2011-12-31 Sold Out 0.09%$50.1 - $67.13 $ 80.2835%0
Ray Dalio 2011-09-30 Add 4192.44%0.15%$49.63 - $71.36 $ 80.2836%191400
Joel Greenblatt 2011-09-30 New Buy0.09%$49.63 - $71.36 $ 80.2836%10401
John Hussman 2011-06-30 Add 25%0.28%$65.4 - $71.43 $ 80.2817%1250000
John Hussman 2011-03-31 Add 266.3%0.82%$64.6 - $71.96 $ 80.2817%1000000
Mario Gabelli 2011-03-31 Reduce -76.46%0.03%$64.6 - $71.96 $ 80.2817%12390
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Varian Medical Systems, Inc.

Wedgewood Partners' David Rolfe Comments on Varian Medical Systems - Nov 12, 2012

Varian Medical Systems (VAR) also detracted from performance during the quarter. During the quarter, the Centers for Medicare and Medicaid Services (CMS) proposed to reduce reimbursement rates for radiation therapy in freestanding clinics by more than what investors were expecting. The freestanding clinic market represents about 15% of Varian’s US Oncology revenues and about 5% of the Company’s total revenues. Interestingly, hospital radiation therapy reimbursement rates were proposed higher, despite its identical value proposition. We think that, similar to 2009, the ultimate rate cut will be much lower and clinics will have much more certainty about future reimbursement, which should boost the currently depressed demand for Varian Oncology products in the US.

From Wedgewood Partners Third Quarter 2012 Review and Outlook.


Check out David Rolfe latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 19.90
VAR's P/E(ttm) is ranked higher than
78% of the 199 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 23.10 vs. VAR: 19.90 )
VAR' s 10-Year P/E(ttm) Range
Min: 12.14   Max: 44.19
Current: 19.9

12.14
44.19
P/B 5.00
VAR's P/B is ranked lower than
59% of the 278 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.77 vs. VAR: 5.00 )
VAR' s 10-Year P/B Range
Min: 3.06   Max: 11.34
Current: 5

3.06
11.34
P/S 2.94
VAR's P/S is ranked higher than
53% of the 292 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.60 vs. VAR: 2.94 )
VAR' s 10-Year P/S Range
Min: 1.62   Max: 5.96
Current: 2.94

1.62
5.96
PFCF 25.50
VAR's PFCF is ranked higher than
66% of the 164 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 27.00 vs. VAR: 25.50 )
VAR' s 10-Year PFCF Range
Min: 14.57   Max: 47.82
Current: 25.5

14.57
47.82
EV-to-EBIT 13.00
VAR's EV-to-EBIT is ranked higher than
82% of the 247 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 18.32 vs. VAR: 13.00 )
VAR' s 10-Year EV-to-EBIT Range
Min: 7   Max: 28.4
Current: 13

7
28.4
PEG 1.90
VAR's PEG is ranked higher than
70% of the 134 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.13 vs. VAR: 1.90 )
VAR' s 10-Year PEG Range
Min: 0.78   Max: 1.98
Current: 1.9

0.78
1.98
Shiller P/E 24.00
VAR's Shiller P/E is ranked higher than
72% of the 127 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 25.28 vs. VAR: 24.00 )
VAR' s 10-Year Shiller P/E Range
Min: 15.67   Max: 80.16
Current: 24

15.67
80.16

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 51.10
VAR's Price/Net Current Asset Value is ranked lower than
69% of the 118 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 13.00 vs. VAR: 51.10 )
VAR' s 10-Year Price/Net Current Asset Value Range
Min: 26.6   Max: 716.5
Current: 51.1

26.6
716.5
Price/Tangible Book 5.70
VAR's Price/Tangible Book is ranked lower than
57% of the 232 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 4.80 vs. VAR: 5.70 )
VAR' s 10-Year Price/Tangible Book Range
Min: 3.62   Max: 11.87
Current: 5.7

3.62
11.87
Price/DCF (Projected) 1.40
VAR's Price/DCF (Projected) is ranked higher than
67% of the 147 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.40 vs. VAR: 1.40 )
VAR' s 10-Year Price/DCF (Projected) Range
Min: 0.95   Max: 4.17
Current: 1.4

0.95
4.17
Price/Median PS Value 0.90
VAR's Price/Median PS Value is ranked higher than
77% of the 268 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.10 vs. VAR: 0.90 )
VAR' s 10-Year Price/Median PS Value Range
Min: 0.54   Max: 3.22
Current: 0.9

0.54
3.22
Price/Peter Lynch Fair Value 1.90
VAR's Price/Peter Lynch Fair Value is ranked higher than
64% of the 76 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 1.90 vs. VAR: 1.90 )
VAR' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.85   Max: 1.81
Current: 1.9

0.85
1.81
Price/Graham Number 2.20
VAR's Price/Graham Number is ranked higher than
56% of the 161 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.20 vs. VAR: 2.20 )
VAR' s 10-Year Price/Graham Number Range
Min: 1.48   Max: 9.71
Current: 2.2

1.48
9.71
Earnings Yield (Greenblatt) 7.70
VAR's Earnings Yield (Greenblatt) is ranked higher than
82% of the 226 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 5.40 vs. VAR: 7.70 )
VAR' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.5   Max: 14.4
Current: 7.7

3.5
14.4
Forward Rate of Return (Yacktman) 13.55
VAR's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 217 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 2.90 vs. VAR: 13.55 )
VAR' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 13.9   Max: 30
Current: 13.55

13.9
30

Business Description

Industry: Medical Instruments & Equipment » Medical Instruments & Supplies
Compare:WST, BAX, COV, TMO, COO » details
Traded in other countries:VNM.Germany
Varian Medical Systems, Inc., is a Delaware corporation and was originally incorporated in 1948 as Varian Associates, Inc. The Company is a manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy. It is a supplier of x-ray imaging components for medical, scientific, and industrial applications and also supplies x-ray imaging products for cargo screening and industrial inspection. The Company's operations are grouped into two reportable operating segments: Oncology Systems and X-ray Products. The Oncology Systems business segment designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy, stereotactic radiosurgery and brachytherapy. Products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment and accessories; as well as information management, treatment planning and image processing software. Oncology Systems' products enable radiation oncology departments in hospitals and clinics to perform conventional radiotherapy treatments and offer advanced treatments such as fixed field intensity-modulated radiation therapy ('IMRT'), image-guided radiation therapy ('IGRT'), volumetric modulated arc therapy and stereotactic radiotherapy, as well as to treat patients using brachytherapy techniques, which involve temporarily implanting radioactive sources. The Company's Oncology Systems products are also used by neurosurgeons to perform stereotactic radiosurgery. Oncology Systems' customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians' offices and cancer care clinics. The X-ray Products business segment designs, manufactures, sells and services x-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography and industrial applications. The Company's x-ray imaging components are sold to large imaging system OEM customers that incorporate them into their medical diagnostic, dental, veterinary and industrial imaging systems. It sells x-ray tubes and flat panel digital image detectors for filmless x-ray imaging to small OEMs, independent service companies and directly to end-users for replacement purposes. The Company has three other businesses that are reported together under the 'Other' category. SIP designs, manufactures, sells and services Linatron x-ray accelerators, imaging processing software and image detection products (including IntellXTM) for security and inspection purposes, such as cargo screening at ports and borders and nondestructive examination in a variety of applications. The VPT business develops, designs, manufactures, sells and services products and systems for delivering proton

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