Elekta AB (EKTA.B) AI Stock Analysis

• Market Cap: kr23.69B
• Dividend Yield: 4.25%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 546.4
• Beta (1Y): 1.12
• Revenue Growth: -0.90%
• EPS Growth: -70.95%
• Country: SE
• Employees: 4,541
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.88
• Shares Outstanding: 368,587,650
• 10 Day Avg. Volume: 896,136
• 30 Day Avg. Volume: 1,329,676
• PEG Ratio: -0.97
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 17.73
• 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: kr60.00
• Price Target Upside: 5.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.2
• Revenue Forecast (FY): kr16.99B

• Rating: 54 Neutral
• Price Target: kr63.00 ▲(10.62% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held back primarily by deteriorating profitability (TTM net loss and margin compression) and increased leverage, with valuation also pressured by an extremely high P/E. These negatives are partly balanced by strong free cash flow generation and supportive technicals with the share price trending above key moving averages.

Positive Factors

Free cash flow generation

Consistent operating and free cash flow (~SEK 2.0B) shows the business converts sales into cash despite earnings pressure. This cash cushion supports R&D, service investment and debt servicing, enhancing durability over the next several quarters even if profits remain weak.

Recurring service & installed-base revenue

Elekta’s business model includes high-margin recurring revenue from service contracts, upgrades and spare parts tied to its installed base. That annuity-like stream stabilizes cashflow and margins over time and underpins long-term customer relationships and upgrade cycles.

Durable gross margins from core franchise

The company’s core radiation therapy systems and software sustain a ~38% gross margin, indicating structural product profitability. Even with EBIT pressure, healthy gross margins give room to absorb cost variability and protect long-term margin recovery as volumes normalize.

Negative Factors

Earnings deterioration and margin compression

Shift from prior double-digit returns to a TTM net loss and compressed margins reflects structural pressures (costs, mix or non-op items). Sustained earnings weakness could impair reinvestment, slow R&D and limit ability to fund strategic initiatives over the coming 2–6 months.

Rising leverage reduces balance-sheet flexibility

Leverage rising to roughly 1.0 debt/equity and lower equity levels mean less financial flexibility. If profits don’t recover, higher debt load increases refinancing and interest risks and constrains capacity for acquisitions, large capex or aggressive share-return programs.

Negative revenue growth trend

Trailing revenue decline (-4.3%) signals weaker equipment orders or softer market demand. Continued top-line contraction threatens long-term service and upgrade revenue growth, undermining the installed-base expansion that drives recurring revenue and margin leverage.

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 channels, primarily from the sale of its radiation therapy systems and software solutions. The company earns substantial income from the sale of its flagship products, such as linear accelerators and brachytherapy systems, which are essential in delivering radiation treatment to cancer patients. Additionally, Elekta provides ongoing maintenance and service contracts, generating recurring revenue over the life cycle of its equipment. The company also benefits from software solutions that support treatment planning and patient management, which are sold as both one-time purchases and subscriptions. Significant partnerships with hospitals, oncology clinics, and research institutions further bolster its revenue streams, as these collaborations often involve long-term contracts and joint ventures aimed at enhancing cancer treatment capabilities. Elekta's focus on innovation and improving patient outcomes ensures its continued relevance and profitability in the evolving healthcare landscape.

Elekta AB Financial Statement Overview

Summary

Income statement weakness (revenue down ~2.6% TTM and a small net loss after prior-year profitability) and rising leverage (debt-to-equity ~1.0, lower ROE) are partially offset by comparatively strong operating and free cash flow (~SEK 2.0B), which provides a cushion despite earnings pressure.

Income Statement

TTM (Trailing-Twelve-Months) shows modest operating profitability (about 38% gross margin and ~5% EBIT margin), but earnings have weakened to a small net loss and revenue is down ~2.6%. Over the last few annual periods, the company moved from strong profitability in 2022–2024 (higher EBIT and net margins) to a sharp margin compression in 2025 and into TTM, suggesting either cost pressure, mix shift, or non-operating headwinds. The core franchise still generates gross profit consistently, but the recent deterioration in bottom-line results is the key concern.

Balance Sheet

Leverage has risen, with debt roughly matching equity in TTM (debt-to-equity ~1.0) versus a more conservative position in 2022–2024. Equity has also stepped down from the 2024 peak, reducing balance-sheet flexibility. Returns on equity have fallen materially from double-digit levels in 2022–2024 to low-single-digits recently, consistent with the earnings slowdown. Overall, the balance sheet remains workable, but the upward drift in leverage and weaker returns increase risk if profitability does not recover.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow is strong and free cash flow is solid (~SEK 2.0B), indicating the business is still converting sales into cash despite weaker reported earnings. However, free cash flow is down about 10% versus the prior period and cash conversion has been uneven across years, so durability is not fully proven. Still, compared with the current earnings pressure, cash flow provides an important cushion.

Breakdown	TTM	Apr 2025	Apr 2024	Apr 2023	Apr 2022	Apr 2021
Income Statement
Total Revenue	17.11B	18.02B	18.12B	16.87B	14.55B	13.76B
Gross Profit	6.42B	6.75B	6.80B	6.35B	5.44B	5.61B
EBITDA	1.80B	2.19B	3.29B	2.57B	2.69B	3.07B
Net Income	-39.00M	237.00M	1.30B	943.00M	1.15B	1.25B
Balance Sheet
Total Assets	27.68B	28.98B	31.41B	29.61B	26.30B	24.84B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.96B	2.78B	3.27B	3.07B	4.40B
Total Debt	7.28B	7.57B	7.25B	6.67B	5.70B	6.24B
Total Liabilities	19.67B	20.13B	20.63B	19.88B	17.39B	16.65B
Stockholders Equity	7.97B	8.80B	10.78B	9.73B	8.91B	8.20B
Cash Flow
Free Cash Flow	2.00B	1.06B	817.00M	400.00M	450.00M	1.71B
Operating Cash Flow	2.65B	2.63B	2.46B	1.96B	1.86B	2.55B
Investing Cash Flow	-1.15B	-1.67B	-1.92B	-1.61B	-1.65B	-613.00M
Financing Cash Flow	-2.29B	-607.00M	-1.10B	-129.00M	-1.73B	-3.60B

Elekta AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:EKTA.B, the sentiment is Positive. The current price of 56.95 is above the 20-day moving average (MA) of 55.12, above the 50-day MA of 56.48, and above the 200-day MA of 49.60, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 70.09 is Negative, neither overbought nor oversold. The STOCH value of 54.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:EKTA.B.

Elekta AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMX	74 Outperform	kr28.82B	49.61	20.86%	―	39.37%	189.04%
RAY.B	66 Neutral	kr6.71B	28.50	24.30%	1.32%	10.48%	25.19%
MCAP	64 Neutral	kr7.40B	37.43	15.16%	―	11.30%	-14.49%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CRAD.B	55 Neutral	kr884.69M	103.06	6.93%	―	-5.80%	-65.99%
EKTA.B	54 Neutral	kr23.69B	546.38	3.08%	4.25%	-0.90%	-70.95%
VITR	49 Neutral	kr12.68B	-3.70	3.34%	0.80%	-1.29%	―

Elekta AB Corporate Events

Elekta absorbs heavy restructuring charge as margin initiatives start to bite

Elekta reported a mixed third quarter, with net sales up 2 percent in constant currencies but down 10 percent in SEK, as currency headwinds and tariffs weighed on reported results. The company maintained a strong book-to-bill ratio of 1.17, driven by robust order intake in China, the U.S., and Europe, and saw improved adjusted gross margin helped by new product launches and better pricing.

Profitability on an adjusted basis held up, with a slightly higher adjusted EBIT margin, but restructuring charges of SEK 417 million tied to a major operating model overhaul pushed net income sharply lower and reduced cash flow. Management said more than 80 percent of planned workforce reductions are completed, targeting over SEK 500 million in annual cost savings by fiscal 2026/27, as Elekta doubles down on focused R&D, U.S. competitiveness, deeper localization in China, and cost-of-goods initiatives to bolster margins and support future growth.

The most recent analyst rating on ($SE:EKTA.B) stock is a Hold with a SEK51.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Adjusts Nomination Committee Ahead of 2026 Annual General Meeting

Elekta has announced a change in its Nomination Committee ahead of the Annual General Meeting scheduled for September 3, 2026, with Anna Magnusson replacing Thomas Wuolikainen as the Fourth Swedish National Pension Fund’s representative. Following this adjustment, the committee now consists of Chair Laurent Leksell, representing his and related parties’ holdings, along with members appointed by the Fourth Swedish National Pension Fund, Nordea Funds, SEB Funds and Lannebo Kapitalförvaltning, and shareholders have been invited to submit proposals to the committee by early June 2026, underscoring Elekta’s ongoing governance and shareholder engagement processes.

The most recent analyst rating on ($SE:EKTA.B) stock is a Hold with a SEK51.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Schedules March 5 Call to Present Q3 2025/26 Results

Elekta has invited analysts and investors to a conference call and webcast on March 5 at 9:00 a.m. CET to present its third-quarter 2025/26 financial results, with the interim report scheduled for release earlier that morning. The session, led by President and CEO Jakob Just-Bomholt alongside the CFO, underscores the company’s ongoing engagement with capital markets and provides stakeholders an opportunity to assess operational performance and strategic direction in the competitive radiation therapy sector.

The most recent analyst rating on ($SE:EKTA.B) stock is a Hold with a SEK51.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Unveils Cost-Cutting Overhaul and Growth Push in U.S. and China

Elekta has outlined a new strategic direction centered on growth, innovation and operational efficiency, anchored in a revamped operating model. As part of this transformation, the company will cut 450 jobs, targeting annual cost savings of more than SEK 500 million from the first quarter of fiscal 2026/27, and will take a restructuring charge of SEK 450–500 million in the second half of 2025/26. Management frames this effort as the first of four “must-win battles” under the banner “Simplify, Empower, Speed,” aimed at streamlining decision-making, strengthening customer relationships and improving execution predictability. The other strategic priorities—Focused Innovation, winning market share in the U.S., expanding in China, and reducing cost of goods sold—are intended to accelerate value creation and sharpen Elekta’s competitive position in key markets, with more detailed financial plans to be presented at a capital markets day in June.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK52.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Names Tomas Eliasson as Newly Created Vice Chair of the Board

Elekta has created a new position of Vice Chair of the Board and appointed current board member and Audit Committee chair Tomas Eliasson to the role, effective immediately. Eliasson, who joined the board in 2023, brings extensive experience in finance, governance and strategy from global industrial and technology-driven companies, and his elevation is presented as a move to strengthen the board’s capacity to support Elekta’s long-term value creation and profitable growth as it continues to expand its role in precision radiation therapy and global cancer care.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK52.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Wins FDA Clearance for AI-Enhanced Evo Linear Accelerator in U.S.

Elekta has received U.S. FDA 510(k) clearance for its Elekta Evo CT-Linac, enabling the company to begin marketing the advanced linear accelerator to radiation oncology providers in the United States. The system incorporates Elekta’s Iris high-definition, AI-enhanced imaging to produce clearer, artifact-reduced cone-beam CT images, improving visualization of tumors, organs-at-risk and soft tissue changes during treatment, and supporting more precise, personalized radiation therapy. Already in use in Europe and other markets, Evo’s U.S. clearance strengthens Elekta’s competitive position in radiation oncology by broadening its portfolio of AI-driven imaging solutions and offering clinics—regardless of size or location—a platform designed to improve targeting accuracy, clinical decision-making and operational efficiency, with Iris imaging also engineered to be upgradable on certain existing Elekta linacs.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK52.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.

Elekta Plans January 2026 Strategic Update on Growth and Innovation

Elekta will host a digital Strategic Update event on January 30, 2026, aimed at investors, analysts and other stakeholders, where President and CEO Jakob Just-Bomholt and the executive leadership team will outline the company’s strategic direction and latest innovations in precision radiation therapy. The event is positioned as a key platform for deepening engagement with the market, highlighting Elekta’s commitment to sustainable, outcome-focused cancer care and signaling future growth opportunities as it seeks to strengthen its role in global oncology treatment.

The most recent analyst rating on ($SE:EKTA.B) stock is a Sell with a SEK52.00 price target. To see the full list of analyst forecasts on Elekta AB stock, see the SE:EKTA.B Stock Forecast page.