RaySearch Laboratories AB (RAY.B) AI Stock Analysis

• Market Cap: kr8.23B
• Dividend Yield: 1.25%
• Average Volume (3M): 94.59K
• Price to Earnings (P/E): 42.6
• Beta (1Y): 0.72
• Revenue Growth: 10.98%
• EPS Growth: 27.60%
• Country: SE
• Employees: 416
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.90
• Shares Outstanding: 28,627,798
• 10 Day Avg. Volume: 70,708
• 30 Day Avg. Volume: 94,594
• PEG Ratio: 0.24
• Price to Book (P/B): 8.45
• Price to Sales (P/S): 6.21
• P/FCF Ratio: 27.66
• 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: kr273.99
• Price Target Upside: 14.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: kr274.00 ▲(14.17% Upside)

RaySearch Laboratories AB's overall score is primarily influenced by its strong financial performance, despite risks from declining revenue and cash flow. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which impacts the overall score negatively.

RaySearch Laboratories AB Business Overview & Revenue Model

Company Description

RaySearch Laboratories AB (publ), a medical technology company, develops software solutions for cancer treatment worldwide. It develops and markets RayStation, a treatment planning system for treatment activities, such as automated planning, adaptive therapy, multi-criteria optimization, fast and accurate dose computations, OAR dose reduction, robustness, machine learning, VMAT, IMRT, 3D-CRT, virtual simulation, electron beam therapy, tomotherapy, stereotactic, proton therapy, carbon ion therapy, and boron neutron capture therapy. The company also develops RayPlan, a treatment planning system for supporting a range of treatment planning activities for 3D-CRT, IMRT, VMAT, tomotherapy, and electron beam radiation therapy; and RayCare, an oncology information system to support cancer treatment activities. In addition, it offers RayCommand, a treatment control system that is compatible with various hardware models and supports advanced functionalities of treatment machines and software systems; and RayIntelligence, a cloud-based oncology analytics system that turns patient data into insights. Further, the company provides training courses related to its products. RaySearch Laboratories AB (publ) is headquartered in Stockholm, Sweden.

How the Company Makes Money

RaySearch Laboratories generates revenue primarily through the sale of its software solutions, particularly RayStation, to healthcare providers and institutions involved in cancer treatment. The company operates on a subscription-based model, offering ongoing software licenses and updates as well as technical support services. Additionally, RaySearch earns revenue from maintenance contracts and training services provided to its clients. Strategic partnerships with leading oncology centers and medical equipment manufacturers further bolster its revenue streams, as these collaborations often involve joint marketing and development efforts that enhance the visibility and adoption of its software products.

RaySearch Laboratories AB Financial Statement Overview

Summary

RaySearch Laboratories AB shows strong profitability with high profit margins and efficient cost management. However, the decline in revenue and free cash flow growth poses potential risks. The balance sheet reflects moderate leverage and strong returns on equity.

Income Statement

RaySearch Laboratories AB demonstrates strong profitability with a high gross profit margin of 91.88% and a solid net profit margin of 17.66% for TTM. However, the company faces challenges with a negative revenue growth rate of -1.11% in the TTM period, indicating a decline in sales. Despite this, the EBIT and EBITDA margins remain robust at 22.86%, reflecting efficient cost management.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.49, indicating manageable leverage. The return on equity is strong at 26.48%, suggesting effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

RaySearch Laboratories AB's cash flow statement reveals a decline in free cash flow growth by -32.02% in the TTM period, which is a concern. The operating cash flow to net income ratio is healthy at 0.72, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.53 suggests a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.19B	1.02B	843.65M	641.67M	651.61M
Gross Profit	1.15B	1.09B	915.58M	748.66M	591.28M	608.24M
EBITDA	246.59M	571.28M	405.94M	340.85M	197.36M	75.82M
Net Income	192.95M	203.51M	81.57M	23.78M	-47.31M	-9.08M
Balance Sheet
Total Assets	1.99B	2.09B	1.95B	1.88B	1.74B	1.28B
Cash, Cash Equivalents and Short-Term Investments	402.81M	462.74M	343.68M	160.27M	102.53M	168.75M
Total Debt	429.98M	471.93M	529.36M	555.39M	561.40M	146.31M
Total Liabilities	1.14B	1.21B	1.22B	1.22B	1.09B	590.55M
Stockholders Equity	848.93M	876.71M	735.23M	657.16M	628.31M	694.35M
Cash Flow
Free Cash Flow	167.28M	267.69M	246.60M	125.28M	-17.06M	105.92M
Operating Cash Flow	380.76M	485.23M	455.93M	356.78M	238.16M	331.51M
Investing Cash Flow	-213.48M	-217.54M	-209.33M	-231.50M	-237.63M	-225.59M
Financing Cash Flow	-181.30M	-159.78M	-56.35M	-72.49M	-72.23M	-44.02M

RaySearch Laboratories AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RAY.B, the sentiment is Negative. The current price of 240 is below the 20-day moving average (MA) of 249.13, below the 50-day MA of 271.19, and below the 200-day MA of 268.36, indicating a bearish trend. The MACD of -6.62 indicates Negative momentum. The RSI at 33.84 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:RAY.B.

RaySearch Laboratories AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANION	68 Neutral	€1.60B	5.95	114.45%	―	1265.46%	―
MCAP	66 Neutral	€8.53B	43.33	15.85%	―	9.32%	-7.55%
CRAD.B	62 Neutral	€1.10B	42.21	7.87%	―	-10.34%	-59.69%
RAY.B	54 Neutral	kr8.23B	42.64	22.80%	1.25%	10.98%	27.60%
EKTA.B	53 Neutral	kr18.16B	65.90	2.76%	5.01%	-1.54%	-75.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VICO	45 Neutral	€2.89B	―	-55.23%	―	-92.57%	-7.72%

RaySearch Laboratories AB Corporate Events

RaySearch Laboratories Reports Q2 2025 Financials and Product Launches

In the second quarter of 2025, RaySearch Laboratories AB experienced a 4.4% decrease in net sales compared to the previous year, with a notable decline in license revenue by 19.8% but an increase in support revenue by 13.9%. Despite a drop in operating profit and cash flow, the company launched significant updates to its RayStation and RayCare systems, marking advancements in treatment planning and clinical workflow efficiency. Strategic partnerships and new orders from prominent hospitals indicate a positive outlook for future growth and market positioning.

RaySearch Laboratories Reinforces Governance with Board Re-elections and Dividend Declaration

At the Annual General Meeting 2025, RaySearch Laboratories AB re-elected its board members and chairman, approved financial statements, and declared a dividend of SEK 3 per share. The meeting also re-elected Deloitte AB as the auditor and approved executive remuneration guidelines, reflecting stability and continuity in the company’s governance. These resolutions are likely to reinforce RaySearch’s strategic direction and reassure stakeholders of its commitment to financial and operational transparency.