Elekta AB (EKTAY) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 0.21%
• Average Volume (3M): 73.00
• Price to Earnings (P/E): 567.4
• Beta (1Y): 1.30
• Revenue Growth: 3.09%
• EPS Growth: -70.05%
• Country: US
• Employees: 4,541
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): <0.01
• Shares Outstanding: 368,587,650
• 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: 11.05
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 4.01
• Enterprise Value/Ebitda: 13.22
• 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: 61 Neutral
• Price Target: $6.50 ▲(2.04% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score reflects mixed financial performance (profitability downshift and TTM net loss, partly offset by solid cash generation) as the biggest anchor, balanced by constructive technical momentum and a cautiously positive earnings-call outlook on orders, margins, and cost savings. Valuation is the main downside due to an extremely high P/E despite a modest dividend yield.

Positive Factors

Product approvals & launches

U.S. FDA approval for Elekta Evo is a structural commercial catalyst: it expands the company’s addressable market in the largest radiotherapy market, supports durable capital-equipment sales, drives follow-on service and upgrade revenue, and strengthens competitive positioning for multi-year hospital purchasing cycles.

Margin improvement & cost program

Sustained gross and cash EBIT margin improvement plus a structural SEK >500m run-rate savings program indicate operating leverage. If the operating-model changes and cost savings fully materialize, they can permanently raise margin floors, improving resilience to cyclical equipment demand over the next 2–6 months.

Solid cash generation

Consistent operating and free cash flow, and a YTD net-debt reduction, provide durable financial flexibility. Strong cash conversion supports reinvestment in R&D, service infrastructure and funding of restructuring costs, cushioning profitability swings tied to lumpy capital-equipment sales cycles.

Negative Factors

FX and tariff headwinds

Material currency translation and tariff impacts are structural risks given Elekta’s global footprint. Persistent FX volatility and tariff exposure can subtract from reported growth and compress margins even if underlying demand recovers, complicating multi-period planning and reducing the cash-to-earnings translation.

Weakened profitability / TTM net loss

A move to a TTM net loss after prior profitable years signals diminished earnings quality. Persistent margin compression reduces retained earnings and ROE, limits capital allocation optionality, and increases sensitivity to cyclical equipment demand and one-off charges over the medium term.

Restructuring charges & rising leverage

While aimed at structural savings, the sizable restructuring charge and remaining cash outlays will weigh on near-term reported earnings and cash. Combined with a modestly higher leverage profile, this reduces financial flexibility if execution or market recovery is slower than planned.

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 primarily makes money by selling capital equipment, software, and long-term services to healthcare providers (e.g., hospitals, cancer centers, and clinics). 1) Capital equipment sales (one-time, project-based revenue): A major revenue stream comes from selling radiation therapy systems and related hardware used for treatment delivery. These transactions are typically large, infrequent purchases tied to hospital budgeting cycles, procurement tenders, and new/expanded radiotherapy capacity. Revenue recognition and cash flow can be influenced by project milestones such as order intake, delivery, installation, and customer acceptance. 2) Software and digital solutions (licenses/subscriptions where applicable): Elekta generates revenue from software used for treatment planning, oncology workflow, and information management. Depending on the product and customer contract structure, software revenue may be recognized via licenses and/or recurring arrangements (e.g., term-based or subscription-like contracts). Software can also be bundled with hardware as part of broader department solutions. 3) Service, maintenance, and support (recurring revenue): After installation, Elekta earns ongoing revenue through service contracts that cover preventive maintenance, repairs, upgrades, parts, and technical support. These agreements can be multi-year and provide a more recurring revenue base compared with capital equipment sales. Service revenue may also include training and clinical/technical consulting tied to implementation and optimization. 4) Upgrades, add-ons, and replacement cycle: Over the lifecycle of installed systems, Elekta can generate additional revenue from hardware upgrades, software updates, new features/modules, and eventual replacement of aging equipment, leveraging its installed base. 5) Financing, tender dynamics, and partnerships (contributing factors): Large hospital purchases are often executed via public tenders and can be supported by distributor networks in certain regions. Where applicable, Elekta may work with financing arrangements or third parties to help customers manage large capital outlays; the specific materiality of such arrangements is not available here (null). Partnerships and interoperability with other clinical systems can support sales of integrated solutions, but specific revenue-sharing terms are not available here (null).

Elekta AB Financial Statement Overview

Summary

Overall fundamentals are mixed: profitability has weakened materially with TTM revenue down and a small net loss (negative net margin) despite a steady gross margin. Balance sheet leverage is moderate but trending higher, and ROE has turned slightly negative. Cash flow is a relative strength with solid operating and free cash flow, but the earnings-to-cash divergence bears monitoring.

Income Statement

Profitability has weakened materially versus prior years. In TTM (Trailing-Twelve-Months), revenue declined (-3.6%) and the company slipped to a small net loss with a slightly negative net margin, despite maintaining a steady gross margin (~37.5%). Operating profitability remains positive (EBIT margin ~5.2%, EBITDA margin ~10.5%), but margins are well below 2022–2024 levels, indicating meaningful compression and reduced earnings quality.

Balance Sheet

Leverage is moderate with debt-to-equity around 0.9 in TTM (Trailing-Twelve-Months), slightly higher than the last few annual periods and above the stronger 2022–2024 balance sheet positioning. Equity remains sizeable relative to assets, but returns have deteriorated, with return on equity turning slightly negative in TTM after positive results in prior years—signaling weaker efficiency and less cushion if profitability stays pressured.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow (~2.6B) and free cash flow (~1.7B) are solid and free cash flow is meaningfully higher than recent annual levels (though down ~13% vs the prior period). However, cash flow relative to revenue remains modest (operating cash flow to revenue ~19%), and the move to a net loss creates a divergence between earnings and cash generation that warrants monitoring.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	16.94B	18.02B	18.12B	16.87B	14.55B	13.76B
Gross Profit	6.36B	6.75B	6.80B	6.35B	5.44B	5.61B
EBITDA	1.93B	2.19B	3.29B	2.57B	2.69B	3.07B
Net Income	-39.41M	237.00M	1.30B	943.00M	1.15B	1.25B
Balance Sheet
Total Assets	27.88B	28.98B	31.41B	29.61B	26.30B	24.84B
Cash, Cash Equivalents and Short-Term Investments	2.56B	2.96B	2.78B	3.27B	3.07B	4.40B
Total Debt	7.34B	7.57B	7.25B	6.67B	5.70B	6.24B
Total Liabilities	19.81B	20.13B	20.63B	19.88B	17.39B	16.65B
Stockholders Equity	8.03B	8.80B	10.78B	9.73B	8.91B	8.20B
Cash Flow
Free Cash Flow	1.71B	1.06B	817.00M	400.00M	450.00M	1.71B
Operating Cash Flow	2.62B	2.63B	2.46B	1.96B	1.86B	2.55B
Investing Cash Flow	-1.13B	-1.67B	-1.92B	-1.61B	-1.65B	-613.00M
Financing Cash Flow	-2.27B	-607.00M	-1.10B	-129.00M	-1.73B	-3.60B

Elekta AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EKTAY, the sentiment is Neutral. The current price of 6.37 is above the 20-day moving average (MA) of 6.19, above the 50-day MA of 6.30, and above the 200-day MA of 5.41, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 10.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EKTAY.

Elekta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATR	74 Outperform	$8.31B	20.41	14.67%	1.50%	2.50%	25.05%
BDX	68 Neutral	$45.64B	28.46	6.93%	2.13%	8.23%	-2.04%
HOLX	66 Neutral	$16.78B	23.34	11.01%	―	1.74%	-25.29%
MASI	63 Neutral	$9.16B	-45.07	-17.21%	―	-16.03%	-813.48%
EKTAY	61 Neutral	$2.31B	567.42	2.57%	0.21%	3.09%	-70.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$8.79B	-10.24	-13.78%	2.75%	-21.20%	-325.40%