Elekta (OM:EKTA B) - Share price, News & Analysis

Q: What is the Fair Price of EKTA B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EKTA B (SEK70.66) is trading below our estimate of [[fair value]] (SEK168.08)

EKTA B fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

EKTA B Stock Overview

Elekta AB (publ), a medical technology company, provides clinical solutions for cancer and brain disorders worldwide.

Rewards

Trading at 58% below our estimate of its fair value

Earnings are forecast to grow 16.65% per year

Risk Analysis

Dividend of 3.4% is not well covered by earnings

Elekta Competitors

Arjo

OM:ARJO B

kr17.6b

Getinge

OM:GETI B

kr63.9b

CellaVision

OM:CEVI

kr8.3b

Elos Medtech

OM:ELOS B

kr2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Elekta
Historical stock prices
Current Share Price	kr70.66
52 Week High	kr132.35
52 Week Low	kr62.60
Beta	0.89
1 Month Change	-7.03%
3 Month Change	-8.45%
1 Year Change	-43.11%
3 Year Change	-47.54%
5 Year Change	-10.61%
Change since IPO	417.02%

Recent News & Updates

Jun 23

When Should You Buy Elekta AB (publ) (STO:EKTA B)?

While Elekta AB (publ) ( STO:EKTA B ) might not be the most widely known stock at the moment, it received a lot of...

Apr 28

Elekta (STO:EKTA B) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	EKTA B	SE Medical Equipment	SE Market
7D	0.5%	2.2%	-0.06%
1Y	-43.1%	-35.8%	-22.4%

Return vs Industry: EKTA B underperformed the Swedish Medical Equipment industry which returned -35.8% over the past year.

Return vs Market: EKTA B underperformed the Swedish Market which returned -22.4% over the past year.

Price Volatility

Is EKTA B's price volatile compared to industry and market?
EKTA B volatility
EKTA B Average Weekly Movement	5.7%
Medical Equipment Industry Average Movement	8.2%
Market Average Movement	7.4%
10% most volatile stocks in SE Market	12.3%
10% least volatile stocks in SE Market	4.7%

Stable Share Price: EKTA B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EKTA B's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	4,631	Gustaf Salford	https://www.elekta.com

Elekta AB (publ), a medical technology company, provides clinical solutions for cancer and brain disorders worldwide. The company offers radiotherapy treatment systems, such as Versa HD, a dose delivery accuracy system; 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.

Elekta Fundamentals Summary

How do Elekta's earnings and revenue compare to its market cap?
EKTA B fundamental statistics
Market Cap	kr26.96b
Earnings (TTM)	kr1.15b
Revenue (TTM)	kr14.55b

23.4x

P/E Ratio

1.9x

P/S Ratio

Is EKTA B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EKTA B income statement (TTM)
Revenue	kr14.55b
Cost of Revenue	kr9.11b
Gross Profit	kr5.44b
Other Expenses	kr4.28b
Earnings	kr1.15b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Jul 08, 2022

Earnings per share (EPS)	3.02
Gross Margin	37.37%
Net Profit Margin	7.93%
Debt/Equity Ratio	51.7%

How did EKTA B perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

79%

Payout Ratio

Does EKTA B pay a reliable dividends?

See EKTA B dividend history and benchmarks

When do you need to buy EKTA B by to receive an upcoming dividend?
Elekta dividend dates
Ex Dividend Date	Aug 26 2022
Dividend Pay Date	Sep 01 2022
Days until Ex dividend	56 days
Days until Dividend pay date	62 days

Does EKTA B pay a reliable dividends?

See EKTA B dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is EKTA B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EKTA B?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EKTA B. This is calculated by dividing EKTA B's market cap by their current preferred multiple.
What is EKTA B's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr26.96b

EKTA B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	14.5x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does EKTA B's PE Ratio compare to its peers?

EKTA B PE Ratio vs Peers

The above table shows the PE ratio for EKTA B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	32.9x
ARJO B Arjo	24x	19.8%	kr17.6b
GETI B Getinge	22.5x	13.7%	kr63.9b
CEVI CellaVision	59.6x	19.6%	kr8.3b
ELOS B Elos Medtech	25.7x	n/a	kr2.0b
EKTA B Elekta	23.4x	16.7%	kr27.0b

Forward PE

Price-To-Earnings vs Peers: EKTA B is good value based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (32.9x).

Price to Earnings Ratio vs Industry

How does EKTA B's PE Ratio compare vs other companies in the European Medical Equipment Industry?

Price-To-Earnings vs Industry: EKTA B is good value based on its Price-To-Earnings Ratio (23.4x) compared to the Swedish Medical Equipment industry average (36.5x)

Price to Earnings Ratio vs Fair Ratio

What is EKTA B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EKTA B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.4x
Fair PE Ratio	38.5x

Price-To-Earnings vs Fair Ratio: EKTA B is good value based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (38.5x).

Share Price vs Fair Value

What is the Fair Price of EKTA B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EKTA B (SEK70.66) is trading below our estimate of fair value (SEK168.08)

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

Price to Earnings Growth Ratio

PEG Ratio: EKTA B is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is Elekta forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EKTA B's forecast earnings growth (16.7% per year) is above the savings rate (0.4%).

Earnings vs Market: EKTA B's earnings (16.7% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: EKTA B's revenue (7.6% per year) is forecast to grow faster than the Swedish market (5.5% per year).

High Growth Revenue: EKTA B's revenue (7.6% 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 low in 3 years time (17%).

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Past Performance

How has Elekta performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.4%

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 (7.9%) are lower than last year (9.1%).

Past Earnings Growth Analysis

Earnings Trend: EKTA B's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: EKTA B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EKTA B had negative earnings growth (-8%) over the past year, making it difficult to compare to the Medical Equipment industry average (6.3%).

Return on Equity

High ROE: EKTA B's Return on Equity (13%) is considered low.

Discover strong past performing companies

Financial Health

How is Elekta's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EKTA B's short term assets (SEK12.9B) exceed its short term liabilities (SEK11.6B).

Long Term Liabilities: EKTA B's short term assets (SEK12.9B) exceed its long term liabilities (SEK5.8B).

Debt to Equity History and Analysis

Debt Level: EKTA B's net debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: EKTA B's debt to equity ratio has reduced from 76.8% to 51.7% over the past 5 years.

Debt Coverage: EKTA B's debt is well covered by operating cash flow (40.3%).

Interest Coverage: EKTA B's interest payments on its debt are well covered by EBIT (10.5x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.40%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: EKTA B's dividend (3.4%) is higher than the bottom 25% of dividend payers in the Swedish market (1.65%).

High Dividend: EKTA B's dividend (3.4%) is low compared to the top 25% of dividend payers in the Swedish market (5.33%).

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.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (79.5%), EKTA B's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (203.8%), EKTA B's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Gustaf Salford (44 yo)

2yrs

Tenure

kr13,097,530

Compensation

Mr. Gustaf Salford serves as President and Chief Executive Officer at Elekta AB (publ) since November 26, 2020 and served as its Acting President and Chief Executive Officer since June 2, 2020 until Novemb...

CEO Compensation Analysis

Compensation vs Market: Gustaf's total compensation ($USD1.28M) is about average for companies of similar size in the Swedish market ($USD1.77M).

Compensation vs Earnings: Insufficient data to compare Gustaf's compensation with company performance.

Leadership Team

Experienced Management: EKTA B's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: EKTA B's board of directors are seasoned and experienced ( 11.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/04/30
Annual Earnings	2022/04/30