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

• Market Cap: €54.24B
• Dividend Yield: 0.4%
• Average Volume (3M): 138.54K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.72
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: kr321.00 ▲(20.86% Upside)

Sectra AB Class B's strong financial performance is the most significant factor, reflecting robust growth and stability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which negatively impacts the overall score.

Positive Factors

Revenue Growth

The robust revenue growth reflects strong demand for Sectra's products, indicating successful market penetration and product adoption, which supports long-term business expansion.

Profitability Margins

High profitability margins demonstrate effective cost management and operational efficiency, ensuring sustainable earnings and competitive advantage in the industry.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Sectra to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Valuation Concerns

A high P/E ratio suggests that the stock may be overvalued, which could limit future stock price appreciation and pose risks if growth expectations are not met.

Cash Flow Efficiency

Suboptimal cash flow efficiency could impact the company's ability to fund operations and investments, potentially affecting long-term growth and shareholder returns.

Market Sentiment

Persistent bearish trends in stock trading patterns may reflect broader market concerns about the company's future performance, potentially affecting investor confidence.

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 robust revenue growth, high profitability margins, and a solid balance sheet with low leverage. Cash flow generation is strong, supporting ongoing investments and shareholder returns. Overall, the financial statements reflect a well-managed company with a positive growth trajectory and financial stability.

Income Statement

Sectra AB Class B demonstrates strong revenue growth with a TTM increase of 29.7%, indicating robust demand for its products. The company maintains high profitability with a gross profit margin of 89% and a net profit margin of 17.8% in the TTM period. EBIT and EBITDA margins are also healthy at 22.6% and 26.1%, respectively. The consistent improvement in margins and revenue growth reflects effective cost management and operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.047, suggesting conservative leverage and financial stability. Return on equity is impressive at 32.1%, indicating efficient use of shareholder funds to generate profits. The equity ratio stands at 54.5%, showcasing a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is strong, with a free cash flow growth rate of 23% in the TTM period. The operating cash flow to net income ratio is 0.71, indicating good cash conversion from earnings. The free cash flow to net income ratio is 0.91, reflecting effective cash generation relative to profits. However, the operating cash flow coverage ratio suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28B	3.24B	2.96B	2.35B	1.95B	1.63B
Gross Profit	2.92B	543.41M	557.55M	488.91M	1.71B	1.48B
EBITDA	854.94M	795.35M	615.06M	538.55M	477.28M	429.01M
Net Income	585.76M	563.37M	428.39M	374.96M	314.79M	275.51M
Balance Sheet
Total Assets	3.76B	3.76B	3.21B	2.74B	2.19B	1.65B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.34B	804.64M	945.24M	808.77M	454.85M
Total Debt	96.75M	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	2.05B	1.92B	1.57B	1.30B	1.08B	895.62M
Cash Flow
Free Cash Flow	999.08M	812.37M	75.58M	347.70M	542.55M	304.53M
Operating Cash Flow	1.10B	922.36M	326.33M	440.49M	616.92M	372.19M
Investing Cash Flow	-102.01M	-113.86M	-130.74M	-212.79M	-68.35M	-66.82M
Financing Cash Flow	-253.84M	-251.88M	-222.20M	-219.29M	-198.75M	-198.69M

Sectra AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 265.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 265.6 is below the 20-day moving average (MA) of 279.90, below the 50-day MA of 291.98, and below the 200-day MA of 304.69, indicating a bearish trend. The MACD of -6.47 indicates Positive momentum. The RSI at 29.29 is Positive, neither overbought nor oversold. The STOCH value of 8.56 is Positive, 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	kr18.98B	43.02	3.34%	0.79%	-1.29%	―
CEVI	68 Neutral	$3.86B	25.49	17.89%	1.63%	1.53%	0.79%
GETI.B	66 Neutral	kr57.28B	27.89	6.91%	2.19%	6.74%	21.40%
SECT.B	63 Neutral	€54.24B	90.32	38.97%	0.40%	10.08%	68.12%
XVIVO	63 Neutral	kr5.64B	188.58	1.32%	―	8.39%	-85.36%
BICO	53 Neutral	$1.69B	-5.31	-57.26%	―	-23.24%	45.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sectra AB Class B Corporate Events

Sectra AB Reports Strong Growth and Strategic Transition in Q1 2025/2026

Sectra AB’s first quarter of 2025/2026 saw significant growth, with order bookings doubling and sales increasing across all operating areas, particularly in the US and Sweden. The company is transitioning to a service-based model, resulting in increased recurring revenue, especially from cloud services. Sectra’s strategic focus on medical IT and cybersecurity, coupled with its new certifications in healthcare cybersecurity, positions it well for future growth, despite short-term financial impacts from its business model transformation.

The most recent analyst rating on ($SE:SECT.B) stock is a Hold with a SEK341.00 price target. To see the full list of analyst forecasts on Sectra AB Class B stock, see the SE:SECT.B Stock Forecast page.

Sectra AB Announces 2025 Annual General Meeting

Sectra AB has announced its Annual General Meeting (AGM) for shareholders, scheduled for September 9, 2025, in Linköping, Sweden. The meeting will provide an opportunity for shareholders to engage with the company and learn more about its offerings, with options for postal voting available to ensure broad participation.