OM:EKTA B

Stock Analysis Report

Executive Summary

Elekta AB (publ) provides equipment and software for cancer and brain disorders worldwide.


Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Elekta's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EKTA B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

EKTA B

3.7%

SE Medical Equipment

4.5%

SE Market


1 Year Return

-33.4%

EKTA B

5.9%

SE Medical Equipment

-10.2%

SE Market

Return vs Industry: EKTA B underperformed the Swedish Medical Equipment industry which returned 8.1% over the past year.

Return vs Market: EKTA B underperformed the Swedish Market which returned -7.1% over the past year.


Shareholder returns

EKTA BIndustryMarket
7 Day10.1%3.7%4.5%
30 Day-30.0%-14.2%-23.1%
90 Day-37.3%-17.7%-23.8%
1 Year-32.4%-33.4%7.6%5.9%-7.4%-10.2%
3 Year-8.5%-12.2%26.4%12.0%-0.2%-15.4%
5 Year4.3%-1.4%24.1%3.2%8.5%-14.7%

Price Volatility Vs. Market

How volatile is Elekta's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elekta undervalued compared to its fair value and its price relative to the market?

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EKTA B (SEK77) is trading below our estimate of fair value (SEK143.74)

Significantly Below Fair Value: EKTA B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EKTA B is good value based on its PE Ratio (24.3x) compared to the Medical Equipment industry average (48.8x).

PE vs Market: EKTA B is poor value based on its PE Ratio (24.3x) compared to the Swedish market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: EKTA B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: EKTA B is good value based on its PB Ratio (3.6x) compared to the SE Medical Equipment industry average (3.6x).


Next Steps

Future Growth

How is Elekta forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EKTA B's forecast earnings growth (18.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: EKTA B's earnings (18.8% per year) are forecast to grow faster than the Swedish market (7.8% per year).

High Growth Earnings: EKTA B's earnings are forecast to grow, but not significantly.

Revenue vs Market: EKTA B's revenue (8.9% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: EKTA B's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EKTA B's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has Elekta performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EKTA B has high quality earnings.

Growing Profit Margin: EKTA B's current net profit margins (8.3%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: EKTA B's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: EKTA B's earnings growth over the past year (4.1%) is below its 5-year average (26.2% per year).

Earnings vs Industry: EKTA B earnings growth over the past year (4.1%) underperformed the Medical Equipment industry 12.6%.


Return on Equity

High ROE: EKTA B's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is Elekta's financial position?


Financial Position Analysis

Short Term Liabilities: EKTA B's short term assets (SEK12.5B) do not cover its short term liabilities (SEK12.5B).

Long Term Liabilities: EKTA B's short term assets (SEK12.5B) exceed its long term liabilities (SEK4.5B).


Debt to Equity History and Analysis

Debt Level: EKTA B's debt to equity ratio (56.1%) is considered high.

Reducing Debt: EKTA B's debt to equity ratio has reduced from 81% to 56.1% over the past 5 years.

Debt Coverage: EKTA B's debt is well covered by operating cash flow (28.6%).

Interest Coverage: EKTA B's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet

Inventory Level: EKTA B has a high level of physical assets or inventory.

Debt Coverage by Assets: EKTA B's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Elekta's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EKTA B's dividend (2.34%) is higher than the bottom 25% of dividend payers in the Swedish market (2.1%).

High Dividend: EKTA B's dividend (2.34%) is low compared to the top 25% of dividend payers in the Swedish market (6.51%).


Stability and Growth of Payments

Stable Dividend: EKTA B's dividend payments have been volatile in the past 10 years.

Growing Dividend: EKTA B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.7%), EKTA B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EKTA B's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Richard Hausmann (59yo)

3.75s

Tenure

kr14,820,000

Compensation

Dr. Richard Hausmann, Ph.D. has been the Chief Executive Officer and President of Elekta AB (publ) since June 10, 2016. Dr. Hausmann has been Vice President at General Electric Company since January 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD0.00) is below average for companies of similar size in the Swedish market ($USD1.37M).

Compensation vs Earnings: Richard's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Laurent Leksell
Founder & Chairman6.5yrskr1.28m6.03% SEK1.8b
Richard Hausmann
President & CEO3.75yrskr14.82m0.016% SEK4.8m
Gustaf Salford
CFO & Executive VP2.67yrsno data0.00055% SEK161.8k
Steven Wort
Chief Operating Officer2.5yrsno datano data
Cecilia Ketels
Head of Investor Relations0.83yrno datano data
Caroline Mofors
Senior VP5.5yrsno datano data
Jonas Bolander
General Counsel3.33yrsno data0.000050% SEK14.7k
Ioannis Panagiotelis
Chief Marketing & Sales Officer2.58yrsno datano data
Karin Nyberg
Executive Vice President of Human Resources3.17yrsno datano data
James Hoey
Head of External Relations4.67yrsno datano data

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: EKTA B's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurent Leksell
Founder & Chairman6.5yrskr1.28m6.03% SEK1.8b
Jan Secher
Independent Director10.17yrskr635.00k0.0075% SEK2.2m
Wolfgang Reim
Independent Director9.17yrskr575.00k0.0046% SEK1.3m
Tomas Puusepp
Non-Executive Director7.17yrskr500.00k0.16% SEK46.2m
Johan Malmquist
Independent Director5.17yrskr635.00k0.0052% SEK1.5m
Birgitta Göransson
Independent Director15.17yrskr725.00k0.0016% SEK470.7k
Caroline Cooke
Director2.58yrskr635.00k0.048% SEK14.0m
Cecilia Wikström
Independent Director1.58yrskr575.00k0.00026% SEK76.5k

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: EKTA B's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EKTA B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Elekta AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elekta AB (publ)
  • Ticker: EKTA B
  • Exchange: OM
  • Founded: 1972
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr29.420b
  • Shares outstanding: 382.08m
  • Website: https://www.elekta.com

Number of Employees


Location

  • Elekta AB (publ)
  • Box 7593
  • Kungstensgatan 18
  • Stockholm
  • Stockholm County
  • 103 93
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EKTA.FOTCPK (Pink Sheets LLC)YesSeries B Registered SharesUSUSDMar 1994
EKTA BOM (OMX Nordic Exchange Stockholm)YesSeries B Registered SharesSESEKMar 1994
EJXBDB (Deutsche Boerse AG)YesSeries B Registered SharesDEEURMar 1994
0O5HLSE (London Stock Exchange)YesSeries B Registered SharesGBSEKMar 1994
EKTABSBATS-CHIXE (BATS 'Chi-X Europe')YesSeries B Registered SharesGBSEKMar 1994
EKTA.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDDec 2008

Biography

Elekta AB (publ) provides equipment and software for cancer and brain disorders worldwide. The company offers radiotherapy systems under the Versa HD, Precise Treatment System, and Elekta Compact names; Elekta Infinity, an image-guided radiation therapy (IGRT) system; and Elekta Synergy, a digital accelerator for advanced IGRT. It also provides personalized imaging tools; automation and integration systems; beam shaping solutions; patient positioning and immobilization solutions; and radiotherapy treatment planning systems. In addition, the company offers radiosurgery systems under the Leksell Gamma Knife Icon, Leksell Gamma Knife Perfexion, and Elekta Axesse names; Leksell GammaPlan, a treatment planning software; and Elekta Unity, a magnetic resonance radiation therapy solution. Further, it provides care management software, such as MOSAIQ Radiation Oncology and MOSAIQ Medical Oncology; MOSAIQ IQ Scripts, a workflow automation and customization tool; Patient Engagement, a patient communication tool; MOSAIQ Evaluate, a plan management and dose review solution; MOSAIQ Locate, a stereotactic localization solution; and METRIQ, a cancer registry data management solution. Additionally, the company offers Flexitron, a remote after loading platform; microSelectron, a digital pulsed dose rate platform; Esteya, an electronic brachytherapy for treating skin cancer; Oncentra Brachy, a treatment planning software; real-time prostate solutions; and gynecological brachytherapy, bronchus and esophagus, breast, prostate, rectum and bladder, and skin applicators, as well as brachytherapy needles and flexible implant tubes. It also provides Leksell Vantage Stereotactic System for neuroimaging and treatment; Elekta Neuromag TRIUX, a magnetoencephalography system; Leksell Stereotactic System for minimally invasive stereotactic neurosurgery; and proton therapy components. The company was founded in 1972 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 20:50
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.