RaySearch Laboratories AB (RAY.B) AI Stock Analysis

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RaySearch Laboratories AB

(OTC:RAY.B)

71Outperform

RaySearch Laboratories AB has a solid financial foundation with strong revenue growth and profitability. The technical indicators suggest a bullish trend, though caution is advised due to potential overbought conditions. The valuation is high, which could limit upside potential unless earnings continue to grow significantly.

RaySearch Laboratories AB (RAY.B) vs. S&P 500 (SPY)

Market Cap

$10.66B

Dividend Yield0.21%

Average Volume (3M)121.61K

Price to Earnings (P/E)47.7

Beta (1Y)0.90

Revenue Growth20.72%

EPS Growth122.06%

CountrySE

Employees416

SectorHealthcare

Sector Strength39

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)1.66

Shares Outstanding28,627,798

10 Day Avg. Volume162,757

30 Day Avg. Volume121,608

Financial Highlights & Ratios

PEG Ratio2.54

Price to Book (P/B)9.58

Price to Sales (P/S)0.00

P/FCF Ratio32.08

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

RaySearch Laboratories AB Business Overview & Revenue Model

Company DescriptionRaySearch Laboratories AB (RAY.B) is a Swedish medical technology company specializing in the development of advanced software solutions for radiation therapy of cancer. The company focuses on creating innovative tools that enhance treatment planning, management, and delivery within oncology care. Its flagship product, RayStation, is a comprehensive treatment planning system that integrates multiple treatment modalities, offering advanced algorithms and support for proton, photon, and carbon ion therapy. Additionally, RayCare, their oncology information system, facilitates workflow and data management in cancer treatment centers.

How the Company Makes MoneyRaySearch Laboratories AB generates revenue primarily through the sale and licensing of its software products like RayStation and RayCare. The company charges healthcare providers and cancer treatment centers for the initial purchase and ongoing licensing of these software solutions. Additionally, RaySearch offers maintenance and support services, which provide a steady stream of recurring revenue. The company also engages in strategic partnerships with hardware manufacturers and healthcare providers to expand its market reach and integrate its software solutions with various treatment delivery systems. These collaborations can lead to joint marketing efforts and bundled offerings, further driving sales and adoption of RaySearch's products.

RaySearch Laboratories AB Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.19B	1.02B	843.65M	641.67M	651.61M
	Gross Profit
1.09B	915.58M	748.66M	591.28M	608.24M
	EBIT
260.49M	114.88M	42.74M	-52.64M	-782.00K
	EBITDA
260.49M	405.94M	340.85M	197.36M	75.82M
	Net Income Common Stockholders
203.51M	81.57M	23.78M	-47.31M	-9.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
462.74M	343.68M	160.27M	102.53M	168.75M
	Total Assets
2.09B	1.95B	1.88B	1.74B	1.28B
	Total Debt
471.93M	529.36M	555.39M	561.40M	146.31M
	Net Debt
9.19M	185.68M	395.12M	458.86M	-22.44M
	Total Liabilities
1.21B	1.22B	1.22B	1.09B	590.55M
	Stockholders Equity
876.71M	735.23M	657.16M	649.28M	694.35M
Cash Flow		Free Cash Flow
267.69M	246.60M	125.28M	-17.06M	105.92M
	Operating Cash Flow
485.23M	455.93M	356.78M	238.16M	331.51M
	Investing Cash Flow
-217.54M	-209.33M	-231.50M	-237.63M	-225.59M
	Financing Cash Flow
-159.78M	-56.35M	-78.49M	-72.23M	-44.02M

RaySearch Laboratories AB Technical Analysis

Technical Analysis Sentiment

Positive

Last Price314.50

Price Trends

50DMA

242.91

Positive

100DMA

238.97

Positive

200DMA

202.88

Positive

Market Momentum

MACD

15.65

Negative

RSI

72.08

Negative

STOCH

94.51

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RAY.B, the sentiment is Positive. The current price of 314.5 is above the 20-day moving average (MA) of 252.07, above the 50-day MA of 242.91, and above the 200-day MA of 202.88, indicating a bullish trend. The MACD of 15.65 indicates Negative momentum. The RSI at 72.08 is Negative, neither overbought nor oversold. The STOCH value of 94.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RAY.B.

RaySearch Laboratories AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	76 Outperform	€1.05B	32.83	10.11%	―	2.53%	-44.90%
RAY.B	71 Outperform	$10.66B	47.68	25.53%	0.21%	20.72%	122.06%
EKTA.B	64 Neutral	kr19.72B	18.99	9.87%	4.65%	-1.85%	-27.56%
BACTI.B	55 Neutral	€995.25M	―	-7.30%	―	23.51%	80.47%
Sector *	52 Neutral	$5.14B	3.39	-43.55%	2.83%	16.49%	-0.19%
XSPRAY	47 Neutral	kr1.01B	―	-42.24%	―	―	-19.44%

* Healthcare Sector Average

Performance Comparison

SE:RAY.B

RaySearch Laboratories AB

308.00

186.29

153.06%

SE:EKTA.B

Elekta AB

52.10

-26.49

-33.71%

SE:BACTI.B

Bactiguard Holding AB

37.90

-32.90

-46.47%

SE:CRAD.B

C-Rad AB Class B

31.85

-7.75

-19.57%

SE:XSPRAY

Xspray Pharma AB

33.60

-14.42

-30.03%

RaySearch Laboratories AB Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q3-2024)

% Change Since: 30.77%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

RaySearch had a strong Q3 2024 with record-breaking sales and improved operating profit and margin. Key strategic milestones were achieved, such as RayCare's integration with Varian TrueBeam. Despite these successes, there were some challenges, including a decrease in support order intake and lower cash flow from operations. However, the overall sentiment of the call indicates a positive outlook for future growth, supported by increased financial targets.

Q3-2024 Updates

Positive Updates

Record Sales and Revenue Growth

Q3 2024 sales reached an all-time high of SEK 293 million, a 19% increase compared to Q3 2023. The net sales for the first 9 months of 2024 increased by 20% to SEK 869 million from SEK 723 million in 2023.

Strong Operating Profit and Margin

Operating profit for Q3 2024 was SEK 62 million with a margin of 21%, compared to SEK 29 million and an 11.3% margin in Q3 2023. The operating profit for the first 9 months of 2024 was SEK 187 million, up from SEK 71 million in 2023, with an improved margin of 21.5%.

Milestone with RayCare and Varian TrueBeam

Iridium Network in Belgium treated their first patient using RayCare with a Varian TrueBeam linear accelerator, increasing RayCare's market potential significantly.

Increased Financial Targets

The operating margin target for 2026 has been raised from 20% to 25% due to consistent strong performance.

Negative Updates

Decrease in Support Order Intake

Order intake for support decreased by 9% from SEK 102 million to SEK 93 million in Q3 2024 compared to the same period last year.

Lower Cash Flow from Operations

Cash flow from operations in Q3 2024 was SEK 60 million, down from SEK 124 million in the same quarter last year, attributed to changes in operating liabilities.

Company Guidance

In the third quarter of 2024, RaySearch reported their highest-ever sales of SEK 293 million, a 19% increase from the same period in 2023, with an operating profit of SEK 62 million and an operating margin of 21%. License revenue rose to SEK 133 million, and order intake reached SEK 253 million. The company maintained a strong financial position, with cash and cash equivalents totaling SEK 425 million and no loans. Notably, cash flow from operations was SEK 61 million. Additionally, the company anticipates RayCare will significantly contribute to revenue in 2025 and 2026, marking a promising growth trajectory. RaySearch also achieved a rolling 12-month net sales of SEK 1.169 billion by the end of September 2024, with a backlog expected to generate SEK 471 million in net sales in the following 12 months. Looking forward, the Board increased the operating margin target to at least 25% by 2026, reflecting confidence in sustained growth and profitability.

RaySearch Laboratories AB Corporate Events

RaySearch Laboratories Reports Strong Q1 2025 Performance and Strategic Advancements

May 9, 2025

In the first quarter of 2025, RaySearch Laboratories AB reported a 29% increase in net sales, driven by a significant rise in license and support revenues. The company achieved an operating profit of SEK 74.8 million, with notable orders including a major contract with Heyou Hospital in China. The release of RayStation v2025 and its adoption by The Royal Marsden NHS Foundation Trust highlights RaySearch’s ongoing innovation and strong market positioning, potentially enhancing its influence in the radiation therapy sector.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.