Elekta AB (EKTAY) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 0.21%
• Average Volume (3M): 73.00
• Price to Earnings (P/E): 80.7
• Beta (1Y): 1.23
• Revenue Growth: 3.09%
• EPS Growth: -70.05%
• Country: US
• Employees: 4,541
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.06
• Shares Outstanding: 368,588,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 73
• PEG Ratio: -0.96
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 17.69
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $6.00 ▼(-0.66% Downside)

Elekta AB's overall stock score reflects a stable financial position with strong cash flow generation and strategic initiatives to improve profitability. However, high valuation metrics and technical indicators suggest caution. The company's proactive approach to cost reductions and strategic focus on key markets are positive, but challenges in revenue growth and profitability margins remain significant factors.

Positive Factors

Strong Cash Flow Generation

Elekta's robust cash flow generation supports operational and financial flexibility, enabling strategic investments and debt management.

Product Innovation

Innovative products like Elekta Evo and Elekta ONE enhance market competitiveness and drive sales growth, strengthening Elekta's market position.

FDA Clearance for New Treatment

FDA clearance expands Elekta's treatment capabilities, potentially increasing market share and opening new revenue streams in the medical sector.

Negative Factors

Decline in Order Intake

A decline in order intake indicates challenges in maintaining sales momentum, which could impact future revenue growth and market share.

Decline in EBIT Margin

Decreasing EBIT margins suggest rising costs and pricing pressures, which may affect profitability and shareholder returns if not addressed.

Challenges in Key Markets

Sales challenges in the U.S. and China highlight competitive and regulatory hurdles, potentially limiting growth in these critical markets.

Elekta AB Business Overview & Revenue Model

Company Description

Elekta 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 Money

Elekta generates revenue through multiple streams, primarily by selling medical devices and software solutions to hospitals and clinics worldwide. The company's key revenue sources include the sale of radiation therapy equipment, maintenance services, and software licenses. Additionally, Elekta earns recurring revenue from service agreements, which involve maintenance support and upgrades for existing equipment. Strategic partnerships with healthcare providers and research institutions also contribute to revenue, as they facilitate the development and deployment of innovative treatments. Furthermore, Elekta's ongoing investment in research and development allows it to continuously enhance its product offerings, driving sales and expanding its market share.

Elekta AB Financial Statement Overview

Summary

Elekta AB presents a stable financial profile with strengths in cash flow generation and a balanced leverage position. However, challenges in revenue growth and profitability margins indicate areas for improvement. The company's ability to manage costs effectively and generate cash flow provides a solid foundation, but enhancing profitability and shareholder returns will be key to future success.

Income Statement

Elekta AB's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue with a negative growth rate of -0.99%, reflecting potential challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin of approximately 37.4%, indicating effective cost management. The net profit margin is relatively low at 1.54%, suggesting limited profitability after expenses. EBIT and EBITDA margins are modest, reflecting operational efficiency but also highlighting room for improvement in profitability.

Balance Sheet

The balance sheet of Elekta AB demonstrates a stable financial position with a debt-to-equity ratio of 0.85, indicating a balanced approach to leveraging. The return on equity (ROE) is low at 2.80%, suggesting limited returns for shareholders. The equity ratio stands at 31.2%, reflecting a solid equity base relative to total assets. Overall, the balance sheet indicates financial stability but highlights the need for improved returns on equity.

Cash Flow

Elekta AB's cash flow statement shows positive trends, with a significant free cash flow growth rate of 50.10% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.24, suggesting efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.52 reflects a healthy cash flow relative to profits. Overall, the cash flow position is strong, supporting the company's operational and financial flexibility.

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

• Technical Analysis Sentiment: Positive
• Last Price: 6.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6.04 is above the 20-day moving average (MA) of 4.97, above the 50-day MA of 5.07, and above the 200-day MA of 5.11, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.48 is Neutral, neither overbought nor oversold. The STOCH value of 88.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EKTAY.

Elekta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLX	69 Neutral	$16.69B	30.15	11.12%	―	1.74%	-25.29%
EKTAY	65 Neutral	$2.31B	80.65	2.57%	0.21%	3.09%	-70.05%
BDX	64 Neutral	$55.30B	33.28	6.54%	2.14%	8.23%	-2.04%
ATR	60 Neutral	$8.00B	19.54	15.80%	1.50%	2.50%	25.05%
MASI	56 Neutral	$8.12B	―	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	40 Neutral	$9.50B	―	-4.70%	2.80%	-21.20%	-325.40%

Elekta AB Corporate Events

Elekta AB Earnings Call: Mixed Signals Amid Growth

The recent earnings call for Elekta AB Unsponsored ADR Class B painted a mixed picture of the company’s financial health. 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.

Elekta AB Reports Solid European Growth Amid Challenges

Elekta AB Unsponsored ADR Class B is a leading company in the medical technology sector, specializing in innovative solutions for radiation therapy and radiosurgery used in cancer treatment. The company is known for its cutting-edge products like the Elekta Evo linear accelerator and the Leksell Gamma Knife.