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Elekta AB Unsponsored ADR Class B (EKTAY)
:EKTAY
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Elekta AB
(OTC:EKTAY)
Rating:63Neutral
Price Target:
$5.50
▲(9.78%Upside)
Elekta AB (EKTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.91B
Dividend Yield2.6%
Average Volume (3M)232.00
Price to Earnings (P/E)85.2
Beta (1Y)0.88
Revenue Growth0.41%
EPS Growth-83.42%
CountryUS
Employees4,541
SectorHealthcare
Sector Strength40
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.10
Shares Outstanding368,588,000
10 Day Avg. Volume0
30 Day Avg. Volume232
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)2.08
Price to Sales (P/S)0.00
P/FCF Ratio16.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside9.78% Upside
Rating ConsensusHold
Number of Analyst Covering0
Elekta AB Business Overview & Revenue Model
Company DescriptionElekta AB (EKTAY) is a leading global company specializing in the development and production of medical devices and software used in treating cancer and brain disorders. The company operates primarily within the healthcare and medical technology sectors, offering innovative solutions such as linear accelerators, brachytherapy, and software for oncology and neurosurgery. Elekta's core products are designed to improve the precision and effectiveness of radiation therapy and radiosurgery, enhancing patient outcomes across the world.
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:May 28, 2025
(Q4-2025)
| % Change Since: -3.65%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong performance in Europe and solid financial metrics against challenges in the U.S. market, noncash impairments, and slight declines in certain regions like China. Overall, the company demonstrated resilience and positioned for future growth but faced significant hurdles that balanced the positive aspects.Q4-2025 Updates
Positive Updates
Solid Book-to-Bill Ratio
The book-to-bill ratio was 1.09 for the fiscal year '24-'25, indicating a solid foundation for future sales growth, and 1.12 in Q4, showing a positive trend.
Strong Performance in Europe
Elekta Evo and Elekta ONE Planning received positive feedback, driving strong momentum in Europe with a 16% sales increase in constant currencies.
Adjusted Gross Margin Improvement
The adjusted gross margin improved to 37.8% for the full year and 40.3% in Q4, achieving the best Q4 gross margin in five years.
Cash Flow Improvement
Operating cash flow after continuous investments improved by SEK 240 million to SEK 1.056 billion for the full year and by SEK 376 million to SEK 1.248 billion in Q4.
Positive Software Growth
Strong order development for software with a 10% growth, safeguarding margins going forward.
Negative Updates
Order Decline in the U.S.
U.S. market showed continued order decline due to customers waiting for Evo clearance.
Noncash Impairment Charge
A noncash impairment of SEK 1.64 billion was booked, primarily due to changes in R&D project directions.
Challenges in China
Despite improvements, China showed a slight order decline compared to last year's tough comparison.
Adjusted EBIT Margin Decrease
Adjusted EBIT margin decreased slightly to 11.6% for the year, mainly due to higher amortization costs.
Company Guidance
During Elekta's fiscal year 2024-2025, the company reported a book-to-bill ratio of 1.09, indicating a solid foundation for future sales growth. Net sales increased by 1% in constant currencies, aligning with previous guidance, while the adjusted gross margin improved to 37.8%, a year-over-year increase of 30 basis points. However, the adjusted EBIT margin slightly decreased to 11.6%, primarily due to higher amortization costs linked to recent product launches. Operating cash flow improved significantly by SEK 240 million, reaching SEK 1.056 billion for the year. The Board has proposed maintaining the dividend at SEK 2.40 per share, reflecting Elekta's strong financial position. During the fourth quarter, the book-to-bill ratio was 1.12, with net sales up by 6% in constant currencies. The adjusted gross margin rose to 40.3%, the highest in five years, and the adjusted EBIT margin reached 16.3%. A noncash impairment of SEK 1.64 billion was noted, related to changes in the scope of R&D projects. Despite challenges, including a slight decline in China and U.S. sales awaiting Evo clearance, Elekta remains optimistic about leveraging its product portfolio for future growth.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
Negative
5.01
Price Trends
5.17
Negative
5.23
Negative
5.59
Negative
Market Momentum
-0.05
Positive
45.72
Neutral
14.44
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 5.01 is below the 20-day moving average (MA) of 5.07, below the 50-day MA of 5.17, and below the 200-day MA of 5.59, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.49B | 21.87 | 18.83% | ― | 3.95% | 44.09% | |
66 Neutral | $4.91B | 40.72 | 9.16% | ― | 8.24% | 18.54% | |
63 Neutral | $1.91B | 85.19 | 2.15% | 2.60% | 0.41% | -83.42% | |
52 Neutral | $7.36B | -0.07 | -63.77% | 2.81% | 16.35% | 0.03% | |
51 Neutral | $859.77M | 55.81 | -19.14% | ― | -14.44% | -557.38% | |
49 Neutral | $1.79B | ― | -45.52% | ― | 18.27% | 16.28% | |
47 Neutral | $1.72B | ― | -10.59% | ― | -3.18% | 81.18% |
* Healthcare Sector Average
Performance Comparison
EKTAY
Elekta AB
5.01
-1.20
-19.32%
HAE
Haemonetics
72.55
-17.70
-19.61%
MMSI
Merit Medical Systems
83.02
-2.76
-3.22%
QDEL
QuidelOrtho
25.45
-9.93
-28.07%
STAA
Staar Surgical
17.36
-25.53
-59.52%
NVCR
NovoCure
16.02
-2.86
-15.15%
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.