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Elekta AB (EKTAY)
OTHER OTC:EKTAY
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Elekta AB
(OTC:EKTAY)
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Rating:64Neutral
Price Target:
$5.50
▲(10.89% Upside)
Elekta AB's overall stock score reflects a stable financial position with strong cash flow generation but faces challenges in profitability and valuation. The mixed technical indicators and earnings call highlight both opportunities and risks, particularly in geographic market performance and margin pressures.
Elekta AB (EKTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend Yield0.26%
Average Volume (3M)2.30K
Price to Earnings (P/E)76.4
Beta (1Y)0.93
Revenue Growth1.66%
EPS Growth-76.67%
CountryUS
Employees4,541
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.03
Shares Outstanding368,588,000
10 Day Avg. Volume0
30 Day Avg. Volume2,299
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.36
Enterprise Value/Ebitda1.10
Forecast
1Y Price Target
$5.50Price Target Upside10.89% 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
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were strong performances in the EMEA region and successful new product launches, challenges in the U.S. and China markets, as well as declining margins, were notable concerns. The improvement in cash flow and FDA clearance for the Leksell Gamma Knife were positive, but the overall financial performance showed signs of strain.Q1-2026 Updates
Positive Updates
Positive Sales Growth in EMEA
Sales in EMEA increased by 15% in constant exchange rate compared to the last year, driven by strong performance in Europe, with notable growth in countries like France, U.K., and Poland.
Strong Performance of New Products
Elekta's latest linear accelerator, Elekta Evo, and the new software suite, Elekta ONE, are gaining traction, contributing positively to sales growth and customer wins.
Cash Flow Improvement
Operating cash flow after continuous investments amounted to negative SEK 361 million, an improvement by SEK 529 million year-over-year, mainly driven by improved working capital management.
FDA Clearance for Leksell Gamma Knife
The Leksell Gamma Knife received FDA clearance for treating certain types of epilepsy, expanding the scope of stereotactic radiosurgery.
Negative Updates
Decline in Order Intake
The book-to-bill ratio came in at 1.05, with a 1% order decline in constant exchange rate compared to last year, indicating challenges in maintaining order momentum.
Decline in EBIT Margin
The adjusted EBIT margin decreased to 6.5% from 7.4% last year, mainly due to a decline in gross margin and increased R&D expenses.
Challenges in the U.S. and China Markets
Americas sales declined by 4% and APAC sales declined by 4% in constant exchange rates, mainly due to lower volumes in North America (awaiting clearance for Elekta Evo) and challenges in China and India.
Gross Margin Decline
The adjusted gross margin declined to 37% from 37.8% last year, negatively impacted by foreign exchange rates and increased tariff costs.
Company Guidance
In the Elekta Q1 earnings call for fiscal year 2025/2026, several key metrics were discussed. The book-to-bill ratio stood at 1.05, with a 1% order decline in constant exchange rates compared to the previous year, while the rolling 12-month book-to-bill remained at 1.09. Net sales increased by 3% in constant currencies, primarily due to strong performance in Europe. The adjusted gross margin declined to 37% from 37.8%, impacted by foreign exchange and tariff costs, which negatively affected the margin by 190 basis points. Adjusted EBIT margin decreased to 6.5% from 7.4% the previous year, with net R&D expenses rising and selling and administrative expenses decreasing due to cost-saving initiatives. Operating cash flow after continuous investments was negative SEK 361 million, an improvement of SEK 529 million year-over-year due to better working capital management. The company expects continued challenges from tariffs and FX in Q2 but anticipates sales recovery in China in the second half of the fiscal year.Elekta AB Financial Statement Overview
Summary
Elekta AB presents a mixed financial picture. The income statement shows challenges with declining margins and inconsistent revenue growth. The balance sheet remains stable with manageable leverage, while cash flow improvements highlight effective cash management. Strengthening profitability and operational efficiency will be crucial for enhancing financial performance.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.65
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.70
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.84B | 18.02B | 18.12B | 16.87B | 14.55B | 13.76B |
| Gross Profit | 6.67B | 6.75B | 6.80B | 6.35B | 5.44B | 5.61B |
| EBITDA | 2.18B | 2.19B | 3.29B | 2.57B | 2.69B | 3.07B |
| Net Income | 274.00M | 237.00M | 1.30B | 943.00M | 1.15B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 29.15B | 28.98B | 31.41B | 29.61B | 26.30B | 24.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.76B | 2.96B | 2.78B | 3.27B | 3.07B | 4.40B |
| Total Debt | 7.74B | 7.57B | 7.25B | 6.67B | 5.70B | 6.24B |
| Total Liabilities | 20.02B | 20.13B | 20.63B | 19.88B | 17.39B | 16.65B |
| Stockholders Equity | 9.09B | 8.80B | 10.78B | 9.73B | 8.91B | 8.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.58B | 1.06B | 817.00M | 400.00M | 450.00M | 1.71B |
| Operating Cash Flow | 3.03B | 2.63B | 2.46B | 1.96B | 1.86B | 2.55B |
| Investing Cash Flow | -1.54B | -1.67B | -1.92B | -1.61B | -1.65B | -613.00M |
| Financing Cash Flow | -984.00M | -607.00M | -1.10B | -129.00M | -1.73B | -3.60B |
Elekta AB Technical Analysis
Negative
4.96
Price Trends
5.01
Negative
5.05
Negative
5.25
Negative
Market Momentum
0.07
Positive
43.30
Neutral
-1.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EKTAY, the sentiment is Negative. The current price of 4.96 is below the 20-day moving average (MA) of 5.11, below the 50-day MA of 5.01, and below the 200-day MA of 5.25, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of -1.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EKTAY.
Elekta AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.72B | 22.82 | 14.50% | 1.36% | 1.51% | 21.70% | |
70 Outperform | $52.91B | 33.20 | 6.30% | 2.25% | 7.86% | 14.24% | |
69 Neutral | $14.95B | 27.89 | 11.50% | ― | 1.28% | -17.73% | |
64 Neutral | $1.90B | 76.37 | 2.57% | 0.26% | 1.66% | -76.67% | |
54 Neutral | $11.29B | -82.79 | -9.32% | 3.09% | -27.41% | 67.01% | |
54 Neutral | $7.68B | -16.51 | -44.04% | ― | -8.36% | -669.36% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
EKTAY
Elekta AB
4.96
-2.01
-28.84%
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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.