Elekta AB (EKTA.B) AI Stock Analysis

• Market Cap: kr18.73B
• Dividend Yield: 4.89%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 79.0
• Beta (1Y): 0.94
• Revenue Growth: -0.57%
• EPS Growth: -81.68%
• Country: SE
• Employees: 4,541
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.11
• Shares Outstanding: 368,587,650
• 10 Day Avg. Volume: 809,025
• 30 Day Avg. Volume: 1,425,064
• PEG Ratio: -1.92
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 82.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr52.07
• Price Target Upside: 6.22% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: kr54.00 ▲(10.16%Upside)

Elekta AB's stock score is influenced primarily by its solid financial performance, despite some cash flow constraints. Technical analysis suggests mixed signals with potential bearish trends, while the high P/E ratio indicates overvaluation. The decent dividend yield provides some support against valuation concerns.

Elekta AB Business Overview & Revenue Model

Company Description

Elekta AB (EKTA.B) is a Swedish company specializing in the development and delivery of clinical solutions for treating cancer and brain disorders. The company operates in the healthcare sector, providing advanced radiation therapy, radiosurgery, and clinical software solutions. Elekta's core products include linear accelerators, software for treatment planning, and systems for image-guided radiation therapy, all designed to improve patient outcomes and streamline clinical workflows.

How the Company Makes Money

Elekta AB generates revenue primarily through the sale and servicing of its medical devices and software solutions to hospitals and clinics worldwide. The company's key revenue streams include the sale of linear accelerators, which are used for radiation therapy, and associated software licenses for treatment planning and management. Elekta also earns revenue from long-term service agreements, offering maintenance and support for its equipment. Significant partnerships with healthcare providers and research institutions enhance its product offerings and market reach, contributing to its earnings. Additionally, Elekta's focus on innovation and technology advancements ensures a steady demand for its products in the oncology treatment space.

Elekta AB Financial Statement Overview

Summary

Elekta AB has strong profitability and a solid balance sheet, with a noteworthy ability to generate cash. However, recent capital expenditures have slightly strained free cash flow, and a minor decline in revenue growth could pose challenges.

Income Statement

Elekta AB demonstrates solid profitability with a gross profit margin of approximately 36.5% and a net profit margin of 5.8% in the TTM period. Despite a slight dip in total revenue from the previous annual report, the company has maintained stable EBIT and EBITDA margins of around 10% and 15.3%, respectively. The revenue growth from 2021 to 2024 indicates a positive trend, although the TTM period shows a minor decline, suggesting potential challenges in maintaining growth momentum.

Balance Sheet

The company exhibits a healthy balance sheet with a debt-to-equity ratio of about 0.82, indicating a balanced leverage position. The equity ratio stands at approximately 32.7%, reflecting a strong equity base. Furthermore, the return on equity (ROE) of 9.6% in the TTM period signals efficient use of equity to generate profits, albeit slightly lower than previous years.

Cash Flow

Elekta AB's cash flow statement reveals a robust operating cash flow to net income ratio of 2.29, highlighting strong cash generation relative to net income. However, free cash flow decreased in the TTM period due to increased capital expenditures, resulting in a lower free cash flow to net income ratio of 0.65. This indicates potential pressure on cash reserves for future investments.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.88B	18.12B	16.87B	14.55B	13.76B	14.60B
Gross Profit	6.52B	6.78B	6.35B	5.44B	5.61B	6.14B
EBITDA	2.74B	3.29B	2.57B	2.74B	3.13B	2.99B
Net Income	1.04B	1.30B	943.00M	1.15B	1.25B	1.08B
Balance Sheet
Total Assets	32.95B	31.41B	29.61B	26.30B	24.84B	28.41B
Cash, Cash Equivalents and Short-Term Investments	3.58B	2.78B	3.27B	3.07B	4.40B	6.46B
Total Debt	8.86B	7.25B	6.67B	5.70B	6.24B	9.36B
Total Liabilities	22.12B	20.63B	19.88B	17.39B	16.65B	20.30B
Stockholders Equity	10.78B	10.77B	9.73B	8.91B	8.20B	8.11B
Cash Flow
Free Cash Flow	679.00M	817.00M	400.00M	450.00M	1.71B	252.00M
Operating Cash Flow	2.38B	2.46B	1.96B	1.86B	2.55B	1.01B
Investing Cash Flow	-1.80B	-1.92B	-1.61B	-1.65B	-613.00M	-1.30B
Financing Cash Flow	516.00M	-1.10B	-129.00M	-1.73B	-3.60B	2.62B

Elekta AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EKTA.B, the sentiment is Negative. The current price of 49.02 is above the 20-day moving average (MA) of 48.80, below the 50-day MA of 49.72, and below the 200-day MA of 58.46, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:EKTA.B.

Elekta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	72 Outperform	€1.22B	37.21	10.11%	―	2.53%	-44.90%
EKTA.B	64 Neutral	kr18.73B	79.03	2.43%	4.89%	-0.57%	-81.68%
INTEG.B	53 Neutral	kr425.83M	―	-19.17%	―	-12.50%	-783.92%
Sector *	49 Neutral	AU$2.49B	4.37	-64.25%	2.83%	36.51%	13.14%
SEDANA	48 Neutral	kr1.22B	―	-5.61%	―	13.66%	-139.90%
ACARIX	46 Neutral	kr361.14M	―	-88.97%	―	-0.61%	54.19%
HEART	34 Underperform	kr67.23M	―		―	―	―

Elekta AB Corporate Events

Elekta AB Reports Strong Q4 Performance with Best Gross Margin in Five Years

Elekta AB reported a 6% increase in net sales for the fourth quarter of 2024/25 at constant exchange rates, driven by strong performance in Europe and APAC, and a 3% increase in reported sales. The company achieved its best fourth-quarter gross margin in five years at 40.3%, supported by price increases, product launches, and a solid performance of its Elekta Evo linear accelerator and Elekta ONE software suite. Despite a non-cash impairment of SEK 1,064 M due to discontinued R&D projects, Elekta maintained a strong book-to-bill ratio and improved cash flow. The company expects continued sales growth and margin improvements, aiming to reach pre-pandemic levels, while its products have received positive feedback from healthcare providers.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK67.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta to Present Fiscal Year 2024/25 Developments

Elekta has announced a presentation for its fiscal year 2024/25, scheduled for May 28, where the company’s Acting President and CEO, Jonas Bolander, along with CFO Tobias Hägglöv, will discuss the company’s development. The event, which includes a live webcast and Q&A session, reflects Elekta’s commitment to transparency and engagement with analysts and investors, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK67.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.