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Varex ImagingVREX -0.09%69 ROC (Joel Greenblatt) % is 0.80% as of Mar. 2026, which is 93% below its 10-year median of 11.38. GuruFocus rates VREX with a GF Score™ of 69/100 and a GF Value™ of $14.01 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 838 Medical Devices & Instruments companies, Varex Imaging ranks worse than 60.38% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Varex Imaging's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 0.80%.
The historical rank and industry rank for Varex Imaging's ROC (Joel Greenblatt) % or its related term are showing as below:
VREX'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -11.36 Med: 11.38 Max: 32.03
Current: -8.67
During the past 13 years, Varex Imaging's highest ROC (Joel Greenblatt) % was 32.03%. The lowest was -11.36%. And the median was 11.38%.
VREX's ROC (Joel Greenblatt) % is ranked worse than 60.38% of 838
companies
in the Medical Devices & Instruments industry
Industry Median: 4.145
vs VREX: -8.67
Varex Imaging's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Varex Imaging ROC (Joel Greenblatt) % Related Terms
Varex Imaging ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Varex Imaging's ROC (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VREX vs VMD, DCTH, OFIX: ROC (Joel Greenblatt) % Comparison
For the Medical Devices subindustry, Varex Imaging's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Varex Imaging ROC (Joel Greenblatt) % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Varex Imaging's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Varex Imaging's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a ROC (Joel Greenblatt) % of 0.80% mean?
Varex Imaging (VREX) has a ROC (Joel Greenblatt) % of 0.80% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Varex Imaging and its competitors. This is 93% below median its historical median of 11.38. According to the industry distribution chart, Varex Imaging ranks #506 out of 838 companies in the Medical Devices & Instruments industry, placing it in the top 60.4%.
Is Varex Imaging's ROC (Joel Greenblatt) % too high?
Varex Imaging's current ROC (Joel Greenblatt) % of 0.80% is 93% below median its 10-year median of 11.38. The Medical Devices & Instruments industry median ROC (Joel Greenblatt) % is 4.15. Varex Imaging's value of 0.80% is 80.7% below this industry median. Based on the distribution chart, Varex Imaging ranks #506 out of 838 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Varex Imaging has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varex Imaging's ROC (Joel Greenblatt) % compare to VMD and DCTH?
According to the Medical Devices & Instruments industry distribution chart, Varex Imaging ranks #506 out of 838 companies for ROC (Joel Greenblatt) %. This places Varex Imaging in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 4.15. Varex Imaging's value of 0.80% is 80.7% below this benchmark. While the company's 10-year median is 11.38 vs. the industry median of 4.15, Varex Imaging has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Medical Devices & Instruments company?
The median ROC (Joel Greenblatt) % among Medical Devices & Instruments companies is 4.15, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Varex Imaging's current ROC (Joel Greenblatt) % of 0.80% is 80.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Varex Imaging and its competitors. For the Medical Devices & Instruments industry, the median ROC (Joel Greenblatt) % is 4.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varex Imaging's current ROC (Joel Greenblatt) % is 0.80%, which is 93% below median its own 10-year median of 11.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varex Imaging stock overvalued right now?
Based on GuruFocus' analysis, Varex Imaging (VREX) is currently considered Modestly Undervalued. The stock's GF Value™ is $14.01, compared to a current price of $10.62 — trading 24.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 0.80%, which is 93% below median its 10-year median of 11.38 and 80.7% below the Medical Devices & Instruments industry median of 4.15. Varex Imaging's overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Varex Imaging (VREX), the current ROC (Joel Greenblatt) % is 0.80% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Varex Imaging (VREX) Overvalued in 2026?
Based on GuruFocus' analysis, Varex Imaging stock appears to be undervalued.
The current stock price of $10.62 is trading 24.2% below its estimated GF Value™ of $14.01.
GuruFocus considers Varex Imaging to be Modestly Undervalued.
Key valuation signals for VREX:
ROC (Joel Greenblatt) %: 0.80% (93% below median its 10-year median of 11.38)
GF Value™: $14.01 vs. price of $10.62 (24.2% below fair value)
Industry Position: 80.7% below the Medical Devices & Instruments median (#506 of 838)
No single metric tells the full story. See the VREX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varex Imaging Corp Designs, manufactures, sells, and services X-ray imaging components, including X-ray tubes, detectors, ionization chambers, high-voltage connectors, software, collimators, generators, exposure control devices, and heat exchangers.. The company operates through two segments: Medical, the key revenue driver, providing X-ray imaging components and accessories for healthcare applications, and Industrial, which provides Linatron X-ray accelerators, X-ray tubes, flat panel detectors, high-voltage connectors, and coolers for non-medical use. Geographically, it generates the majority of its revenue from Europe, the Middle East, and Africa (EMEA), with the rest coming from the Americas and Asia Pacific.
69GF Score
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