Elekta AB (EKTAY) AI Stock Analysis

• Market Cap: $2.49B
• Dividend Yield: 0.21%
• Average Volume (3M): 73.00
• Price to Earnings (P/E): 87.0
• Beta (1Y): 1.26
• 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: 9.29
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 10.69
• 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: 70 Outperform
• Price Target: $6.50 ▲(2.04% Upside)

Elekta AB's overall stock score reflects a stable financial position and positive technical momentum. The earnings call provided a mix of positive developments and challenges, with strong performance in Europe and strategic initiatives to address market challenges. However, the high P/E ratio suggests potential overvaluation, and challenges in the U.S. market and order cancellations remain concerns.

Positive Factors

Cash Generation

Improved cash flow indicates strong operational efficiency and financial health, enabling reinvestment and debt reduction, supporting long-term growth.

European Market Growth

Strong growth in Europe suggests successful product adoption and market penetration, reinforcing Elekta's competitive position in a key region.

Service Business Expansion

Expansion in the service segment provides recurring revenue and strengthens customer relationships, enhancing long-term business stability.

Negative Factors

US Market Challenges

Declining revenues in the U.S. market indicate competitive and operational challenges, potentially impacting Elekta's overall market share and growth.

Order Cancellations

Significant order cancellations may affect future revenue streams and indicate potential issues in order management and market demand.

Gross Margin Recovery Issues

Challenges in gross margin recovery can pressure profitability, limiting Elekta's ability to invest in growth and innovation.

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 position with strengths in cash flow generation and a balanced capital structure. While revenue growth has faced challenges, the company maintains efficient cost management and operational efficiency. The balance sheet reflects prudent leverage, and cash flow metrics indicate strong cash generation capabilities. However, there is room for improvement in profitability and returns on equity.

Income Statement

Elekta AB's income statement shows mixed performance. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -1.52%. However, the company maintains a stable gross profit margin of approximately 37.95%, indicating efficient cost management. The net profit margin is relatively low at 1.66%, suggesting challenges in converting revenue into profit. EBIT and EBITDA margins are moderate, reflecting decent operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet of Elekta AB demonstrates a solid equity base with a debt-to-equity ratio of 0.90, indicating a balanced approach to leveraging. The return on equity (ROE) is modest at 3.15%, suggesting limited returns on shareholder investments. The equity ratio is healthy, showing that a significant portion of the company's assets is financed by equity, which enhances financial stability.

Cash Flow

Elekta AB's cash flow statement reveals strong free cash flow growth of 24.54% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.26, indicating efficient cash conversion from operations. The free cash flow to net income ratio of 0.69 suggests a robust ability to generate cash relative to net income, supporting potential reinvestment and debt servicing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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

• Technical Analysis Sentiment: Positive
• Last Price: 6.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 6.37 is above the 20-day moving average (MA) of 6.12, above the 50-day MA of 5.52, and above the 200-day MA of 5.17, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 90.38 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	76 Outperform	$16.70B	30.16	11.12%	―	1.74%	-25.29%
EKTAY	70 Outperform	$2.49B	86.98	2.57%	0.21%	3.09%	-70.05%
BDX	67 Neutral	$58.46B	34.86	6.54%	2.13%	8.23%	-2.04%
ATR	60 Neutral	$8.03B	19.85	15.80%	1.50%	2.50%	25.05%
MASI	54 Neutral	$7.41B	-13.00	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$10.64B	-39.68	-4.70%	2.75%	-21.20%	-325.40%