RaySearch Laboratories AB (RAY.B) AI Stock Analysis

• Market Cap: $7.70B
• Dividend Yield: 1.34%
• Average Volume (3M): 196.07K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 0.66
• Revenue Growth: 10.48%
• EPS Growth: 25.19%
• Country: SE
• Employees: 416
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 2.09
• Shares Outstanding: 28,627,798
• 10 Day Avg. Volume: 162,420
• 30 Day Avg. Volume: 196,069
• 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: 1.13
• Enterprise Value/Revenue: 6.76
• Enterprise Value/Gross Profit: 7.27
• Enterprise Value/Ebitda: 31.87
• 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: 75 Outperform
• Price Target: kr255.00 ▲(13.59% Upside)

RaySearch Laboratories demonstrates strong financial performance and promising strategic expansions, as highlighted in the earnings call. However, technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. Cash flow challenges also pose a risk.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position in the oncology software market.

Strategic Expansion

Expanding into chemotherapy and surgery planning broadens RaySearch's product offerings, potentially increasing market share and diversifying revenue streams.

Order Intake Growth

The substantial increase in order intake reflects strong customer demand and satisfaction, supporting future revenue stability and growth.

Negative Factors

Cash Flow Challenges

Negative cash flow can limit the company's ability to invest in growth opportunities and may indicate potential liquidity issues if not addressed.

Declining Revenue Growth

A decline in revenue growth suggests potential challenges in maintaining sales momentum, which could impact long-term profitability and market position.

Free Cash Flow Decline

Reduced free cash flow growth limits financial flexibility and the ability to fund new initiatives, potentially hindering strategic expansion efforts.

RaySearch Laboratories AB Business Overview & Revenue Model

Company Description

RaySearch Laboratories AB (RAY.B) is a Swedish medical technology company specializing in software solutions for cancer treatment. Founded in 2000, the company focuses on developing advanced treatment planning systems for radiation therapy, including its flagship product RayStation. RaySearch operates in the healthcare sector, particularly within oncology, and aims to enhance the precision and effectiveness of cancer treatments through innovative software that integrates with existing medical technologies.

How the Company Makes Money

RaySearch Laboratories generates revenue primarily through the sale of its software products and services, particularly the RayStation treatment planning system. The company employs a subscription model for software licensing, where healthcare facilities pay for access to its software solutions, along with annual maintenance and support fees. Additionally, RaySearch earns income from professional services, including training and consulting for healthcare providers implementing its systems. Significant partnerships with hospitals and cancer treatment centers globally contribute to its revenue, as well as collaborations with hardware manufacturers in the radiation therapy space, expanding the company's reach and enhancing its product offerings.

RaySearch Laboratories AB Financial Statement Overview

Summary

RaySearch Laboratories AB demonstrates strong profitability with high profit margins and efficient cost management. However, the company faces challenges with negative revenue growth and a decline in free cash flow growth, posing potential risks.

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	1.29B	1.19B	1.02B	843.65M	641.67M	651.61M
Gross Profit	1.20B	1.09B	915.58M	748.66M	591.28M	608.24M
EBITDA	273.87M	571.28M	405.94M	340.85M	197.36M	75.82M
Net Income	219.16M	203.51M	81.57M	23.78M	-47.31M	-9.08M
Balance Sheet
Total Assets	1.94B	2.09B	1.95B	1.88B	1.74B	1.28B
Cash, Cash Equivalents and Short-Term Investments	322.80M	462.74M	343.68M	160.27M	102.53M	168.75M
Total Debt	411.10M	471.93M	529.36M	555.39M	561.40M	146.31M
Total Liabilities	1.02B	1.21B	1.22B	1.22B	1.09B	590.55M
Stockholders Equity	919.30M	876.71M	735.23M	657.16M	628.31M	694.35M
Cash Flow
Free Cash Flow	82.22M	267.69M	246.60M	125.28M	-17.06M	105.92M
Operating Cash Flow	308.68M	485.23M	455.93M	356.78M	238.16M	331.51M
Investing Cash Flow	-226.36M	-217.54M	-209.33M	-231.50M	-237.63M	-225.59M
Financing Cash Flow	-178.68M	-159.78M	-56.35M	-72.49M	-72.23M	-44.02M

RaySearch Laboratories AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 224.50
• 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:RAY.B, the sentiment is Negative. The current price of 224.5 is above the 20-day moving average (MA) of 224.38, below the 50-day MA of 229.73, and below the 200-day MA of 267.71, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 41.11 is Neutral, 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	76 Outperform	€2.18B	8.11	167.77%	―	2687.51%	―
RAY.B	75 Outperform	$7.70B	35.12	24.30%	1.34%	10.48%	25.19%
CRAD.B	66 Neutral	€1.11B	47.83	6.93%	―	-5.80%	-65.99%
MCAP	63 Neutral	€8.74B	44.15	15.16%	―	11.30%	-14.49%
EKTA.B	55 Neutral	kr21.70B	74.55	3.08%	4.23%	-0.90%	-70.95%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VICO	45 Neutral	€2.37B	―	-71.87%	―	-91.85%	-6.65%

RaySearch Laboratories AB Corporate Events

RaySearch Laboratories Reports Strong Q3 2025 Performance

RaySearch Laboratories AB Class B, a prominent player in the medical technology sector, specializes in developing advanced software solutions for cancer treatment. The company has reported a robust third quarter in 2025, marked by record-high net sales and a significant increase in operating profit. Key highlights from the quarter include a 17% increase in order intake and a 13% rise in net sales, reaching SEK 332 million. The operating profit saw a substantial 44% growth, underscoring the scalability of RaySearch’s business model. Notable strategic developments during the quarter include collaborations to enhance global cancer care access and the launch of RayIntelligence v2025, an updated oncology analytics platform. Looking ahead, RaySearch is poised for continued growth, supported by strong customer demand, strategic partnerships, and ongoing investments in research and development.

RaySearch Reports Record Revenues and Strategic Growth

RaySearch Laboratories AB Class B recently held an earnings call that painted a picture of a robust quarter, marked by record revenues and improved profitability. The company reported significant interest in its solutions, although it acknowledged challenges with cash flow and temporary high gross margins. Despite these hurdles, the positive developments and strategic plans for expansion into new areas like chemotherapy and surgery suggest a promising future for RaySearch.

RaySearch Laboratories Reports Record Q3 2025 Performance and Strategic Collaborations

RaySearch Laboratories AB reported record high net sales and strong long-term performance in Q3 2025, with a 13% increase in net sales and a 44% rise in operating profit. The company also announced significant collaborations and product launches, including a partnership with Radiology Oncology Systems to expand cancer care access and the introduction of RayIntelligence v2025, an updated analytics platform. These developments are expected to strengthen RaySearch’s market position and enhance its service offerings in oncology.

The most recent analyst rating on ($SE:RAY.B) stock is a Hold with a SEK241.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch Expands Proton Therapy Capabilities at Stanford Health Care

RaySearch Laboratories AB has secured an additional order for its RayStation software to enhance proton therapy at Stanford Health Care. This order will support advanced proton arc therapy, including upright treatments, and integrate with the Mevion FIT system. This collaboration with Stanford Health Care, Mevion, and Leo Cancer Care exemplifies the integration of hardware, software, and clinical expertise to advance cancer treatment.

The most recent analyst rating on ($SE:RAY.B) stock is a Hold with a SEK241.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.

RaySearch to Release Q3 2025 Interim Report with Webcast Presentation

RaySearch Laboratories AB announced that it will release its interim report for the third quarter of 2025 on November 7, followed by a webcast presentation. The presentation, led by CEO Johan Löf and CFO Nina Grönberg, will provide insights into the company’s performance and will include a Q&A session. This event is significant for stakeholders as it offers an opportunity to engage with the company’s leadership and gain a deeper understanding of its financial health and strategic direction.

The most recent analyst rating on ($SE:RAY.B) stock is a Hold with a SEK274.00 price target. To see the full list of analyst forecasts on RaySearch Laboratories AB stock, see the SE:RAY.B Stock Forecast page.