Sectra AB Class B (SECT.B) AI Stock Analysis

• Market Cap: kr42.97B
• Dividend Yield: 0.43%
• Average Volume (3M): 138.54K
• Price to Earnings (P/E): 65.6
• Beta (1Y): 0.57
• Revenue Growth: 10.08%
• EPS Growth: 68.12%
• Country: SE
• Employees: 1,234
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.77
• Shares Outstanding: 182,017,440
• 10 Day Avg. Volume: 126,769
• 30 Day Avg. Volume: 138,545
• PEG Ratio: 3.22
• Price to Book (P/B): 29.81
• Price to Sales (P/S): 17.64
• P/FCF Ratio: 70.34
• 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: 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: 58 Neutral
• Price Target: kr229.00 ▼(-8.55% Downside)

Sectra AB Class B's overall stock score is primarily supported by its strong financial performance, characterized by high profitability and low leverage. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation, which negatively impacts the score.

Positive Factors

Low leverage and strong ROE

Very low leverage paired with a 32% ROE indicates durable financial flexibility and highly effective capital deployment. This supports capacity for R&D, selective M&A or cyclic resilience without stressing the balance sheet, sustaining strategic options over months.

High profit margins

Exceptionally high gross margins and healthy operating margins reflect strong pricing power and efficient cost structure. These structural advantages enable continued reinvestment in product development and protect profitability against competitive and cost pressures over a multi-month horizon.

Recurring revenue model

A business mix weighted to long-term licenses and maintenance delivers predictable, recurring cash flows and customer stickiness. Combined with strong cash conversion, this model improves revenue visibility and supports steady investment and margin stability over time.

Negative Factors

Slowing revenue growth

Material deceleration to sub-3% TTM revenue growth signals potential demand saturation or slower new-account traction. Over months this can constrain scale economies, pressure future margin expansion, and force strategic shifts toward new markets or product lines.

Declining free cash flow growth

An ~12% decline in free cash flow growth reduces internal funding for capex, R&D, dividends or acquisitions. Persisting FCF contraction can limit strategic flexibility and increase reliance on operational improvements or external financing to sustain growth initiatives.

OCF coverage below net income

Operating cash flow covering only ~71% of net income suggests earnings are partly supported by non-cash items or working-capital timing. Over the medium term this raises earnings quality and cash sustainability concerns, especially if the gap widens during investment cycles.

Sectra AB Class B Business Overview & Revenue Model

Company Description

Sectra AB Class B (SECT.B) is a Swedish company specializing in medical technology and cybersecurity solutions. It operates primarily in the healthcare sector, offering products and services that enhance medical imaging, radiology, and pathology. Sectra's core offerings include advanced imaging software for radiology and breast imaging, as well as solutions for managing and sharing medical images securely. Additionally, the company provides cybersecurity solutions for protecting sensitive information within the healthcare sector.

How the Company Makes Money

Sectra generates revenue through a combination of software licensing, maintenance contracts, and professional services related to its medical imaging and cybersecurity solutions. Key revenue streams include recurring revenues from long-term contracts with healthcare providers for software maintenance and support, as well as one-time sales from new software licenses and equipment. The company also benefits from partnerships with healthcare organizations and technology providers, which can enhance its market reach and provide tailored solutions to clients. Additionally, Sectra's focus on innovation in imaging technology and cybersecurity helps to secure ongoing demand for its products and services.

Sectra AB Class B Financial Statement Overview

Summary

Sectra AB Class B exhibits strong financial health with high profitability, low leverage, and effective cash flow management. While revenue growth has slowed, the company maintains robust margins and a solid balance sheet. The decline in free cash flow growth warrants attention, but overall, the financial position is stable and well-managed.

Income Statement

Sectra AB Class B demonstrates strong profitability with a high gross profit margin of 89.05% TTM, indicating efficient cost management. The net profit margin of 17.85% TTM is robust, reflecting solid bottom-line performance. Revenue growth is positive at 2.96% TTM, although it shows a deceleration compared to previous periods. EBIT and EBITDA margins remain healthy at 22.61% and 26.05% TTM, respectively, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is strong, characterized by a low debt-to-equity ratio of 0.047 TTM, indicating minimal leverage and financial risk. Return on equity is impressive at 32.06% TTM, highlighting effective use of shareholder funds. The equity ratio stands at a solid level, reflecting a stable capital structure.

Cash Flow

Operating cash flow is robust, with a coverage ratio of 0.71 TTM, indicating good cash generation relative to net income. However, free cash flow growth has declined by 11.73% TTM, which could signal potential challenges in cash flow management. The free cash flow to net income ratio remains strong at 0.91 TTM, suggesting efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.38B	3.24B	2.96B	2.35B	1.95B	1.63B
Gross Profit	2.45B	543.41M	557.55M	488.91M	1.71B	1.48B
EBITDA	922.34M	795.35M	615.06M	538.55M	477.28M	429.01M
Net Income	646.40M	563.37M	428.39M	374.96M	314.79M	275.51M
Balance Sheet
Total Assets	3.50B	3.76B	3.21B	2.74B	2.19B	1.65B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.34B	804.64M	945.24M	808.77M	454.85M
Total Debt	95.09M	87.46M	31.79M	82.26M	62.62M	73.45M
Total Liabilities	1.71B	1.84B	1.64B	1.44B	1.11B	756.33M
Stockholders Equity	1.79B	1.92B	1.57B	1.30B	1.08B	895.62M
Cash Flow
Free Cash Flow	881.89M	812.37M	75.58M	347.70M	542.55M	304.53M
Operating Cash Flow	962.59M	922.36M	326.33M	440.49M	616.92M	372.19M
Investing Cash Flow	-113.86M	-113.86M	-130.74M	-212.79M	-68.35M	-66.82M
Financing Cash Flow	-447.62M	-251.88M	-222.20M	-219.29M	-198.75M	-198.69M

Sectra AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 250.40
• 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:SECT.B, the sentiment is Negative. The current price of 250.4 is above the 20-day moving average (MA) of 230.22, below the 50-day MA of 255.29, and below the 200-day MA of 304.32, indicating a bearish trend. The MACD of -9.41 indicates Negative momentum. The RSI at 31.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SECT.B.

Sectra AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VITR	71 Outperform	kr15.74B	35.68	3.34%	0.80%	-1.29%	―
CEVI	71 Outperform	kr3.52B	23.22	17.89%	1.61%	1.53%	0.79%
XVIVO	60 Neutral	kr7.09B	281.92	1.32%	―	8.39%	-85.36%
SECT.B	58 Neutral	kr42.97B	65.63	38.97%	0.43%	10.08%	68.12%
GETI.B	57 Neutral	kr53.22B	23.57	6.91%	2.16%	6.74%	21.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BICO	50 Neutral	kr1.22B	-1.78	-57.26%	―	-23.24%	45.32%

Sectra AB Class B Corporate Events

Sectra Reports Strong Growth and Profitability in H1 2025/2026

Sectra reported significant growth in order bookings, sales, and profitability for the first half of 2025/2026, driven by high customer satisfaction and market expansion in North America. The company’s strong financial performance, highlighted by increased recurring and cloud revenues, underscores its strengthened market position and operational efficiency.

The most recent analyst rating on ($SE:SECT.B) stock is a Hold with a SEK321.00 price target. To see the full list of analyst forecasts on Sectra AB Class B stock, see the SE:SECT.B Stock Forecast page.