Accuray (ARAY) AI Stock Analysis

• Market Cap: $140.10M
• Dividend Yield: N/A
• Average Volume (3M): 799.51K
• Price to Earnings (P/E): 230.5
• Beta (1Y): 1.74
• Revenue Growth: 8.06%
• EPS Growth: N/A
• Country: US
• Employees: 987
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.01
• Shares Outstanding: 103,013,380
• 10 Day Avg. Volume: 660,545
• 30 Day Avg. Volume: 799,508
• PEG Ratio: 1.89
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.31
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.88
• Enterprise Value/Ebitda: 6.33
• 1Y Price Target: $5.38
• Price Target Upside: 281.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $1.50 ▲(6.38%Upside)

Accuray's overall stock score is driven by mixed financial performance with high leverage and low profitability but strong cash flow generation. Technical indicators suggest a bearish trend. Despite high valuation concerns, strong earnings call outcomes with significant revenue growth and improved EBITDA offer optimism. Corporate events support liquidity but do not impact the score.

Positive Factors

Debt Management

The refinancing agreement addresses investor concerns about near-term debt maturity while preserving a healthy balance sheet.

Market Expansion

China has the potential to become a massive positive as Accuray is poised to become the leader in this huge emerging market.

Revenue Growth

China and APAC regions are driving revenue growth significantly for Accuray Incorporated.

Negative Factors

Regional Challenges

The company faces challenges in the US and EIMEA regions, with revenue declines in these areas.

Share Dilution

The share dilution and potentially higher interest expense are acknowledged as drawbacks.

Tariff Volatility

The outlook on tariffs remains highly volatile and dynamic.

Accuray Business Overview & Revenue Model

Company Description

Accuray Incorporated (ARAY) is a leading radiation oncology company that develops, manufactures, and sells innovative tumor treatment solutions. The company operates in the healthcare sector, providing state-of-the-art technologies for precise cancer treatments. Accuray's core products include the CyberKnife, TomoTherapy, and Radixact systems, which are advanced platforms for delivering radiation therapy to patients with cancerous lesions, tumors, and other conditions requiring radiation treatment.

How the Company Makes Money

Accuray generates revenue primarily through the sale of its specialized radiation therapy systems and related services. The company's key revenue streams include the sale of new systems, servicing and maintaining installed systems, and providing software upgrades and support. Accuray also earns revenue from extended warranty contracts and leasing agreements. Significant partnerships with hospitals, cancer treatment centers, and healthcare providers contribute to its financial performance by expanding its market reach and customer base. Additionally, Accuray benefits from ongoing investments in research and development, which enhance its product offerings and competitive position in the oncology treatment market.

Accuray Financial Statement Overview

Summary

Accuray presents a mixed financial picture with moderate revenue growth and stable gross profit margins. High leverage and low profitability are concerns, but improved cash flow metrics offer some optimism. The company needs to focus on enhancing operational efficiency and reducing financial risk to strengthen its financial position.

Income Statement

Accuray's income statement shows a moderate performance with a gross profit margin of 31.5% and a net profit margin of 0.1% for TTM. The company has seen a revenue growth rate of 4.2% from the previous year, indicating a positive trend. EBIT and EBITDA margins are relatively low at 2.2% and 3.9%, respectively, pointing to limited profitability at the operating level.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 4.32, which indicates high leverage and potential financial risk. The return on equity is low at 1.4% for TTM, suggesting limited returns for shareholders. However, the equity ratio stands at 10.2%, showing a reasonable level of equity compared to total assets.

Cash Flow

Accuray's cash flow statement highlights a strong improvement with a positive free cash flow growth rate. The operating cash flow to net income ratio is 33.4, demonstrating robust cash generation relative to net income. Additionally, the free cash flow to net income ratio stands at 28.3, indicating efficient cash management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	446.55M	447.61M	429.91M	396.29M	382.93M
Gross Profit	142.92M	153.96M	159.96M	159.51M	149.87M
EBITDA	5.71M	9.61M	13.66M	28.62M	20.08M
Net Income	-15.54M	-9.28M	-5.35M	-6.31M	3.83M
Balance Sheet
Total Assets	468.63M	479.21M	472.85M	480.10M	490.08M
Cash, Cash Equivalents and Short-Term Investments	68.57M	89.40M	88.74M	116.37M	107.58M
Total Debt	210.75M	205.04M	213.73M	199.41M	221.70M
Total Liabilities	423.54M	425.56M	419.66M	411.26M	427.29M
Stockholders Equity	45.08M	53.66M	53.19M	68.84M	62.79M
Cash Flow
Free Cash Flow	-15.51M	2.86M	-7.12M	36.19M	-5.20M
Operating Cash Flow	-11.90M	15.54M	-2.40M	38.51M	-1.47M
Investing Cash Flow	-3.60M	-12.68M	-4.72M	-2.40M	-3.73M
Financing Cash Flow	-3.95M	-2.11M	-15.37M	-28.80M	26.70M

Accuray Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARAY, the sentiment is Neutral. The current price of 1.41 is above the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.42, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARAY.

Accuray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARAY	61 Neutral	$140.10M	230.51	1.48%	―	8.06%	―
CVRX	59 Neutral	$224.22M	―	-76.01%	―	25.62%	11.86%
SOPH	59 Neutral	$241.26M	―	-60.75%	―	4.66%	11.33%
TNGX	57 Neutral	$745.75M	―	-61.35%	―	10.10%	-7.25%
SEER	55 Neutral	$124.75M	―	-24.73%	―	-1.02%	-8.59%
Sector *	52 Neutral	$7.61B	0.04	-62.94%	2.44%	16.14%	0.33%
LNSR	47 Neutral	$156.67M	―	-304.05%	―	28.24%	-334.39%

Accuray Corporate Events

Accuray Enters Exchange Agreements and Secures New Credit

On June 5, 2025, Accuray Incorporated entered into exchange agreements with holders of its 3.75% Convertible Senior Notes due 2026, exchanging $82 million in notes for shares and cash, with the transaction expected to close on June 11, 2025. Additionally, Accuray secured a new senior secured credit agreement with TCW Asset Management, providing $150 million in term loans and additional facilities to refinance existing debt and support future operations, enhancing liquidity and operational flexibility.

The most recent analyst rating on (ARAY) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Accuray stock, see the ARAY Stock Forecast page.

Accuray Reports Strong Q3 2025 Financial Performance

Accuray reported a strong financial performance for the third quarter of fiscal 2025, with a 12% increase in total net revenue to $113.2 million and a significant reduction in net loss compared to the previous year. Despite a decrease in gross product orders and a lower order backlog, the company maintained a positive outlook, reaffirming its adjusted EBITDA guidance and adjusting revenue expectations due to tariff impacts, demonstrating resilience and strategic execution in challenging global conditions.