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Elekta AB Unsponsored ADR Class B (EKTAY)
:EKTAY
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Elekta AB
(OTC:EKTAY)
Rating:68Neutral
Price Target:
$5.50
▲(7.84% Upside)
Elekta AB (EKTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend Yield4.51%
Average Volume (3M)924.00
Price to Earnings (P/E)87.1
Beta (1Y)0.89
Revenue Growth0.41%
EPS Growth-83.42%
CountryUS
Employees4,541
SectorHealthcare
Sector Strength47
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)N/A
Shares Outstanding368,588,000
10 Day Avg. Volume226
30 Day Avg. Volume924
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda1.22
Forecast
1Y Price Target
$5.50Price Target Upside7.84% Upside
Rating ConsensusHold
Number of Analyst Covering0
Elekta AB Business Overview & Revenue Model
Company DescriptionElekta AB (publ), a medical technology company, provides clinical solutions for treating cancer and brain disorders worldwide. The company offers Versa HD, a brain metastases solution; Elekta Unity, a MR-Linac technology; Elekta Harmony, a linear accelerator; Elekta Infinity for treating a range of patients with simple-to-complex radiotherapy needs; Elekta Synergy, a digital accelerator for advanced image-guided radiation therapy; treatment management solutions; automated and integrated quality assurance solutions; and hardware and software motion management technology. It also provides MOSAIQ Plaza for multidisciplinary cancer care; Elekta Axis Cloud, a managed hosting service; Elekta Studio, an image-guided brachytherapy solution; ImagingRing, a mobile CT scanner; Oncentra Brachy, a smart tool that facilitate repetitive tasks; Venezia applicator that enables the radiation oncologist to treat locally advanced cervical cancer; Elekta Flexitron afterloader for enabling the precise execution of all steps in the workflow; and Geneva, an applicator for cervical cancer treatment. In addition, the company offers Leksell Gamma Knife Icon for personalized radiation treatment; Leksell Gamma Knife Perfexion, a tool for neurosurgeons; Leksell Gamma Knife Lightning for accelerated radiosurgery. Further, it provides neurosurgery products comprising Leksell Vantage Stereotactic System for intracranial neurosurgery; and Leksell Stereotactic System or minimally invasive stereotactic neurosurgery. The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyElekta AB generates revenue through the sale of its medical devices and software solutions to hospitals, clinics, and healthcare providers globally. The company's key revenue streams include the sale of linear accelerators used in radiation therapy, brachytherapy equipment, and comprehensive oncology software systems. Elekta also earns recurring revenue from service contracts, maintenance agreements, and software upgrades, which provide ongoing support and enhancements for its installed systems. Additionally, strategic partnerships and collaborations with healthcare institutions and research organizations contribute to its market presence and innovation pipeline, further bolstering its financial performance.
Elekta AB Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive achievements, including a solid book-to-bill ratio, improved gross margins, and successful product launches, particularly in Europe. However, challenges were noted in the U.S. market due to delays in regulatory clearance, a significant noncash impairment, and softness in the Chinese market. Despite these issues, the company demonstrated strong cash flow and maintained a competitive product portfolio. The sentiment leans towards positive due to the outweighing highlights.Q4-2025 Updates
Positive Updates
Solid Book-to-Bill Ratio
The book-to-bill ratio continued to be solid at 1.09 for the full year of '24-'25, implying a solid foundation for future sales growth.
Positive Product Launch Impact
Product launches, especially in Europe with Elekta Evo and Elekta ONE Planning, received positive feedback and contributed to growth.
Improved Adjusted Gross Margin
The adjusted gross margin improved to 37.8%, increasing by 30 basis points year-over-year, supported by price increases and improved product mix.
Record High Q4 Gross Margin
The adjusted gross margin for Q4 improved significantly to 40.3%, an increase of 370 basis points year-over-year, marking the best Q4 gross margin in 5 years.
Strong Operating Cash Flow
Operating cash flow after continuous investment improved by SEK 376 million to SEK 1.248 billion in Q4, driven by improved earnings.
Strong Performance in Europe
Sales in EMEA increased by 16% in constant exchange rates compared to last year, driven by strong performance in Europe, supported by new product launches.
Accelerated Innovations and Competitive Portfolio
Elekta's product portfolio has been enhanced with new launches, making it highly competitive with adaptive treatments across all product lines.
Negative Updates
Order Decline in Q4
There was a 10% order decline in constant exchange rate compared to last year, with China showing a slight decline due to tough comparisons.
U.S. Market Challenges
The U.S. market showed continued decline as customers awaited the Evo clearance, impacting orders and revenue.
Noncash Impairment
A noncash impairment of SEK 1.64 billion was booked due to changes in the course of direction for certain R&D projects.
Regulatory Submission Delay
In consultation with the FDA, Elekta changed its regulatory submission strategy for Elekta Evo to align better with the approval process, potentially delaying the product launch.
China Market Softness
The Chinese market remained soft, impacted by the anticorruption campaign, resulting in a limited sales decline of 1% compared to last year.
FX Headwinds
Changes in foreign exchange rates negatively impacted the adjusted gross margin by 60 basis points year-over-year.
Company Guidance
During the call, Elekta provided several key financial metrics and strategic updates for the fiscal year '24-'25. The company reported a solid book-to-bill ratio of 1.09 for the full year and 1.12 for the fourth quarter, indicating a strong foundation for future sales growth. Net sales increased by 1% in constant currencies, while the adjusted gross margin improved to 37.8%, up by 30 basis points year-over-year, primarily due to price increases and an improved product mix. The adjusted EBIT margin was 11.6%, slightly down from the previous year, mainly due to higher amortization costs. Elekta's operating cash flow improved by SEK 240 million to SEK 1.056 billion for the full year, and the board proposed a dividend of SEK 2.40 per share, consistent with the previous year. For the fourth quarter, Elekta achieved a 6% increase in net sales in constant currencies, with the adjusted gross margin reaching 40.3%, the best Q4 gross margin in five years. The company also discussed a noncash impairment of SEK 1.64 billion due to changes in the product development road map and regulatory submission strategies.Elekta AB Financial Statement Overview
Summary
Elekta AB displays a mixed financial performance with strong gross profit margins but declining net profit margins and inconsistent revenue growth. The balance sheet is stable, and cash flow management is improving, highlighting effective cash management despite lower free cash flow than previous years.Income Statement
Elekta AB shows moderate performance in its income statement. The gross profit margin is strong, reflecting good control over direct costs. However, the net profit margin has decreased significantly from the previous year, indicating a decline in profitability. Revenue growth rate has been inconsistent, showing a decrease in the latest period. EBIT and EBITDA margins have also contracted, suggesting challenges in operational efficiency.72
Positive
Balance Sheet
The balance sheet reveals a stable financial position with a manageable debt-to-equity ratio, though it has increased slightly over the years. Return on equity has declined, reflecting lower profitability relative to shareholders' equity. The equity ratio has been stable, indicating a balanced approach to financing via debt and equity.68
Positive
Cash Flow
Elekta's cash flow statement is relatively strong, with positive operating cash flow indicating solid cash generation from operations. Free cash flow has grown, showing improved cash management, although it remains lower compared to earlier years. The operating cash flow to net income ratio suggests that the company's earnings are translating well into cash.75
Positive
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.02B | 18.12B | 16.87B | 14.55B | 13.76B |
| Gross Profit | 6.75B | 6.80B | 6.35B | 5.44B | 5.61B |
| EBITDA | 2.19B | 3.29B | 2.57B | 2.69B | 3.07B |
| Net Income | 237.00M | 1.30B | 943.00M | 1.15B | 1.25B |
Balance Sheet | |||||
| Total Assets | 28.98B | 31.41B | 29.61B | 26.30B | 24.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.96B | 2.78B | 3.27B | 3.07B | 4.40B |
| Total Debt | 7.57B | 7.25B | 6.67B | 5.70B | 6.24B |
| Total Liabilities | 20.13B | 20.63B | 19.88B | 17.39B | 16.65B |
| Stockholders Equity | 8.80B | 10.78B | 9.73B | 8.91B | 8.20B |
Cash Flow | |||||
| Free Cash Flow | 1.06B | 817.00M | 400.00M | 450.00M | 1.71B |
| Operating Cash Flow | 2.63B | 2.46B | 1.96B | 1.86B | 2.55B |
| Investing Cash Flow | -1.67B | -1.92B | -1.61B | -1.65B | -613.00M |
| Financing Cash Flow | -607.00M | -1.10B | -129.00M | -1.73B | -3.60B |
Elekta AB Technical Analysis
Positive
5.10
Price Trends
5.04
Positive
5.08
Positive
5.38
Negative
Market Momentum
0.03
Negative
54.25
Neutral
44.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EKTAY, the sentiment is Positive. The current price of 5.1 is above the 20-day moving average (MA) of 4.99, above the 50-day MA of 5.04, and below the 200-day MA of 5.38, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 44.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EKTAY.
Elekta AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.27B | 45.25 | 8.60% | ― | 10.14% | 0.04% | |
68 Neutral | $1.95B | 87.07 | 2.15% | 4.51% | 0.41% | -83.42% | |
68 Neutral | $2.66B | 16.86 | 18.27% | ― | 0.91% | 45.81% | |
56 Neutral | $1.36B | 55.81 | -25.55% | ― | -32.59% | -667.81% | |
53 Neutral | $1.90B | ― | -14.80% | ― | -3.00% | 76.48% | |
51 Neutral | $7.83B | -0.18 | -40.10% | 2.29% | 21.46% | -2.03% | |
46 Neutral | $1.32B | ― | -48.07% | ― | 14.58% | 0.86% |
* Healthcare Sector Average
Performance Comparison
EKTAY
Elekta AB
5.11
-1.60
-23.85%
HAE
Haemonetics
55.23
-19.85
-26.44%
MMSI
Merit Medical Systems
90.79
-5.02
-5.24%
QDEL
QuidelOrtho
27.77
-16.02
-36.58%
STAA
Staar Surgical
27.51
-4.40
-13.79%
NVCR
NovoCure
11.91
-7.82
-39.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.