Elekta AB Class B EKTA B

Morningstar Rating
SEK 59.05 +1.60 (2.79%)
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Company Report

Elekta in the Midst of the Turnaround, Shares Still Attractive

Demand for radiotherapy should stay healthy over the next decade. Elekta stands to benefit from the industrywide tailwind, but its recent performance has been challenging. Siemens Healthineers has been able to gain market share globally due to its size and relationship with large hospital networks. Elekta's position is still formidable, but the future success hinges on the uptake of its latest product platform, Evo, as well as growing adoption of Unity.

Price vs Fair Value

EKTA B is trading at a LOCK|d#ZW!N premium.
Price
SEK 57.45
Fair Value
WK
Uncertainty
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1-Star Price
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5-Star Price
Kd
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We estimate that the Asia-Pacific marketplace could support up to 5,000 additional linac installations. Given Elekta's strong ties with emerging-market customers, particularly in China, we believe the company can grab a sizable portion of greenfield in this region.

Bears

Unity was Elekta's massive bet, and it is yet to pay off. Advancements in AI could potentially limit the value-add of MR-RT systems, particularly given their significant cost.

Trading Information

Previous Close Price
SEK 57.45
Day Range
SEK 57.15–59.70
52-Week Range
SEK 41.86–66.70
Bid/Ask
SEK 59.05 / SEK 59.15
Shares Outstanding
382.08M
Market Cap
SEK 22.60B
Volume/Avg
778,718 / 1M

Key Statistics

Price/Earnings (Normalized)
16.21
Price/Sales
1.32
Dividend Yield (Trailing)
4.18%
Dividend Yield (Forward)
4.18%
Dividend Payment Schedule
Mar, Sep
Total Yield
4.18%

Company Profile

Sweden-based Elekta develops, manufactures, and distributes treatment planning systems for neurosurgery and radiotherapy, including stereotactic radiosurgery and brachytherapy. The company has an installed base of more than 7,300 linear accelerators, Gamma Knife and Unity platforms, as well as brachytherapy installations. The company's sales are evenly distributed across geographies, with North and South America accounting for 27%; Europe, the Middle East, and Africa accounting for 40%; and the Asia-Pacific contributing the remainder.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Small Value
Total Number of Employees
3,996

Competitors

Valuation

Metric
EKTA B
SHL
BDX
Price/Earnings (Normalized)
16.2119.3415.00
Price/Book Value
2.902.452.18
Price/Sales
1.322.032.75
Price/Cash Flow
10.1414.6714.72
Price/Earnings
EKTA B
SHL
BDX

Financial Strength

Metric
EKTA B
SHL
BDX
Quick Ratio
0.620.740.36
Current Ratio
0.861.160.94
Interest Coverage
1.197.883.53
Quick Ratio
EKTA B
SHL
BDX

Profitability

Metric
EKTA B
SHL
BDX
Return on Assets (Normalized)
1.83%5.00%4.97%
Return on Equity (Normalized)
6.33%12.25%10.63%
Return on Invested Capital (Normalized)
5.06%12.99%7.26%
Return on Assets
EKTA B
SHL
BDX

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