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

• Market Cap: kr45.42B
• Dividend Yield: 0.43%
• Average Volume (3M): 138.54K
• Price to Earnings (P/E): 68.4
• Beta (1Y): 0.37
• Revenue Growth: 10.08%
• EPS Growth: 68.12%
• Country: SE
• Employees: 1,234
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.81
• 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: kr210.00
• Price Target Upside: -16.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.02
• Revenue Forecast (FY): kr3.23B

• Rating: 67 Neutral
• Price Target: kr230.00 ▼(-8.15% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is primarily supported by strong financial performance (rapid TTM growth, strong margins, and very low leverage with robust ROE). It is held back by a mixed-to-weak technical trend (negative MACD and below longer-term moving averages) and especially by expensive valuation (very high P/E and low yield).

Positive Factors

Rapid Revenue Acceleration

A sustained large uplift in TTM revenue indicates strong demand and successful go-to-market execution across software licensing and services. Over 2–6 months this suggests expanding market penetration and higher recurring contract base that can compound future revenue.

High and Durable Profitability

Consistently strong operating and net margins point to pricing power, efficient cost structure, and scalable software-centric economics. These margins enable reinvestment in R&D and sales, supporting product leadership and durable cash generation over the medium term.

Conservative Balance Sheet and Strong ROE

Very low leverage paired with high ROE gives financial flexibility to fund growth, pursue partnerships or acquisitions, and withstand downturns. The capital-light software model combined with strong equity returns supports sustainable strategic options.

Negative Factors

Declining Free Cash Flow

A notable TTM FCF decline signals working-capital or collection variability that can reduce internal funding for capex, R&D, or acquisitions. Over months this raises the chance of tighter near-term liquidity and greater reliance on operational execution to restore cash conversion.

Margin and Gross-Profit Variability

Significant year-to-year margin swings imply sensitivity to product mix, pricing pressure, or cost volatility. This undermines longer-term margin predictability, complicates forecasting and budgeting, and increases execution risk for sustaining high profitability.

High Expectations Leave Little Room for Error

Elevated profitability raises external expectations; any slowdown or execution miss could disproportionately impact perceived stability and capital access. Structurally, this increases downside risk over the medium term if growth or margin performance softens.

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

Strong financial profile with sharply accelerating TTM revenue (+~129%), solid profitability (operating margin ~24%, net margin ~19%), and a conservatively levered balance sheet (debt-to-equity ~0.05) supporting strong ROE (low-30% range). Score is tempered by notable margin variability across years and uneven cash-flow conversion, including a TTM free-cash-flow decline (~-18%) despite good FCF-to-net-income (~0.92x).

Income Statement

TTM (Trailing-Twelve-Months) revenue accelerated sharply (about +129% vs the prior annual period), with strong profitability: operating margin around 24% and net margin around 19%. Earnings are solid and consistent over time, but margins and gross profit levels show notable swings across years (including unusually low gross margin in 2025 and unusually high levels in 2021–2022), which adds some quality/consistency risk to the trend.

Balance Sheet

Balance sheet is conservatively positioned with very low leverage (debt-to-equity ~0.05 in TTM (Trailing-Twelve-Months)), and equity has steadily expanded over the period. Returns on equity are strong (low-30% range in TTM (Trailing-Twelve-Months)), signaling efficient capital use; the main drawback is that profitability is high enough that investors may expect continued execution, leaving less room for operational disappointment.

Cash Flow

Cash generation is strong in absolute terms in TTM (Trailing-Twelve-Months), with free cash flow close to net income (roughly 0.92x), supporting earnings quality. However, free cash flow declined year over year (about -18% in TTM (Trailing-Twelve-Months)) and cash conversion has been uneven historically (notably weak in 2024), indicating potential working-capital volatility and less predictable near-term cash flow trajectory.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	3.42B	3.24B	2.96B	2.35B	1.95B	1.63B
Gross Profit	1.87B	543.41M	557.55M	488.91M	1.71B	1.48B
EBITDA	784.05M	795.35M	615.06M	538.55M	477.28M	429.01M
Net Income	537.49M	563.37M	428.39M	374.96M	314.79M	275.51M
Balance Sheet
Total Assets	4.05B	3.76B	3.21B	2.74B	2.19B	1.65B
Cash, Cash Equivalents and Short-Term Investments	1.35B	1.34B	804.64M	945.24M	808.77M	454.85M
Total Debt	109.51M	87.46M	31.79M	82.26M	62.62M	73.45M
Total Liabilities	2.12B	1.84B	1.64B	1.44B	1.11B	756.33M
Stockholders Equity	1.93B	1.92B	1.57B	1.30B	1.08B	895.62M
Cash Flow
Free Cash Flow	727.41M	812.37M	75.58M	347.70M	542.55M	304.53M
Operating Cash Flow	799.99M	922.36M	326.33M	440.49M	616.92M	372.19M
Investing Cash Flow	-136.29M	-113.86M	-130.74M	-212.79M	-68.35M	-66.82M
Financing Cash Flow	-448.49M	-251.88M	-222.20M	-219.29M	-198.75M	-198.69M

Sectra AB Class B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 250.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SECT.B, the sentiment is Neutral. The current price of 250.4 is above the 20-day moving average (MA) of 196.07, above the 50-day MA of 210.64, and below the 200-day MA of 290.10, indicating a neutral trend. The MACD of 4.86 indicates Negative momentum. The RSI at 69.22 is Neutral, neither overbought nor oversold. The STOCH value of 94.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
CEVI	76 Outperform	kr3.58B	24.49	17.89%	1.61%	1.53%	0.79%
SECT.B	67 Neutral	kr45.42B	68.38	27.98%	0.43%	10.08%	68.12%
GETI.B	57 Neutral	kr51.27B	26.39	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	kr1.16B	-1.36	-50.36%	―	-23.24%	45.32%
VITR	49 Neutral	kr12.76B	-3.70	3.34%	0.80%	-1.29%	―
XVIVO	49 Neutral	kr5.85B	233.59	1.20%	―	8.39%	-85.36%

Sectra AB Class B Corporate Events

Sectra boosts cloud-driven recurring revenue as orders surge in nine-month 2025/2026 report

Sectra reported strong demand in its nine-month 2025/2026 interim period, highlighted by a 4.2% increase in contracted order bookings to SEK 6.05 billion and an 18.5% rise in recurring revenue, driven by a 57.5% surge in cloud recurring revenue. Net sales grew 7.9% to SEK 2.51 billion, and operating profit rose 21.1% to SEK 501.5 million excluding last year’s patent settlement, underscoring improved underlying profitability.

In the third quarter, contracted order bookings climbed 35% and cloud recurring revenue jumped 53.3%, though net sales growth was more modest at 5.1% and the operating margin eased to 21.8%. Cash flow from operations declined compared with the prior year’s elevated levels, but the company continues to benefit from high customer satisfaction and low churn, reinforcing its competitive position in enterprise imaging and supporting a shift toward higher-margin recurring cloud revenue.

The most recent analyst rating on ($SE:SECT.B) stock is a Hold with a SEK206.00 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 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.