OM:RAY B

Stock Analysis Report

RaySearch Laboratories

Executive Summary

RaySearch Laboratories AB (publ) operates as a medical technology company that develops software solutions for cancer treatment in North America, Asia, Europe, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

RAY B

2.6%

SE Healthcare Services

3.4%

SE Market


1 Year Return

30.6%

RAY B

12.8%

SE Healthcare Services

9.1%

SE Market

Return vs Industry: RAY B exceeded the Swedish Healthcare Services industry which returned 12.8% over the past year.

Return vs Market: RAY B exceeded the Swedish Market which returned 9.1% over the past year.


Shareholder returns

RAY BIndustryMarket
7 Day-0.7%2.6%3.4%
30 Day1.2%4.1%0.6%
90 Day17.1%15.2%2.9%
1 Year30.6%30.6%13.0%12.8%13.7%9.1%
3 Year-17.7%-17.7%-10.8%-11.1%31.2%11.6%
5 Year291.7%290.9%119.1%103.5%64.2%29.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

65.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RAY B (SEK163.4) is trading above our estimate of fair value (SEK41.04)

Significantly Undervalued: RAY B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAY B is poor value based on its PE Ratio (65.6x) compared to the Healthcare Services industry average (29.8x).

PE vs Market: RAY B is poor value based on its PE Ratio (65.6x) compared to the Swedish market (16.8x).


Price to Earnings Growth Ratio

Low PEG Ratio: RAY B is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RAY B is overvalued based on its PB Ratio (8.1x) compared to the SE Healthcare Services industry average (7.9x).


Next Steps

Future Growth

How is RaySearch Laboratories forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAY B's forecast earnings growth (33.3% per year) is above the savings rate (0.4%).

Earnings vs Market: RAY B's earnings (33.3% per year) are forecast to grow faster than the Swedish market (9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RAY B's revenue (17.3% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: RAY B's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RAY B's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has RaySearch Laboratories performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RAY B has become profitable over the past 5 years, growing earnings by 15.1% per year.

Accelerating Growth: RAY 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: RAY B had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Healthcare Services industry average (8%).


Return on Equity

High ROE: RAY B's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: RAY B's Return on Assets is below or equal to the Healthcare Services industry average last year.


Return on Capital Employed

ROCE Improving: RAY B's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is RaySearch Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: RAY B's short term assets (SEK551.9M) exceeds its short term liabilities (SEK315.4M)

Long Term Liabilities: RAY B's short term assets (551.9M) exceeds its long term liabilities (232.4M)


Debt to Equity History and Analysis

Debt Level: RAY B's debt to equity ratio (1.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if RAY B's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RAY B's debt is well covered by operating cash flow (2394.9%).

Interest Coverage: RAY B's interest payments on its debt are well covered by EBIT (20.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: RAY B's debt is covered by short term assets (assets are 44.805220x debt).


Next Steps

Dividend

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

0.39%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%4.7%industryaverage1.7%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate RAY B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RAY B's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if RAY B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RAY B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RAY B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAY B's dividend in 3 years as they are not forecast to pay a notable one for the Swedish market.


Next Steps

Management

What is the CEO of RaySearch Laboratories's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Johan Löf (50yo)

19.8yrs

Tenure

kr9,214,000

Compensation

Dr. Johan Löf has been the Chief Executive Officer and President of Raysearch Laboratories AB (Publ) since 2000. Dr. Löf serves as the Chief Executive Officer of RaySearch Medical AB. Dr. Löf has been a Di ...


CEO Compensation Analysis

Compensation vs. Market: Johan's total compensation ($USD0.00) is too low to compare against companies of similar size in the Swedish market ($USD510.54K).

Compensation vs Earnings: Johan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.1yrs

Average Tenure

46yo

Average Age

Experienced Management: RAY B's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

15.4yrs

Average Tenure

58yo

Average Age

Experienced Board: RAY B's board of directors are seasoned and experienced ( 15.4 years average tenure).


Insider Trading

Insider Buying: RAY B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sellkr1,201,46903 Sep 19
Henrik Friberger
EntityIndividual
Shares7,299
Max Pricekr165.09
Sellkr34,886,07530 Aug 19
Johan Löf
EntityIndividual
Role
Chief Executive Officer
Founder
Shares200,000
Max Pricekr186.33
Sellkr930,15029 Aug 19
Carl Bergendal
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max Pricekr186.03
Buykr547,13821 Feb 19
Johan Löf
EntityIndividual
Role
Chief Executive Officer
Founder
Shares5,370
Max Pricekr102.00

Ownership Breakdown


Management Team

  • Johan Löf (50yo)

    Founder

    • Tenure: 19.8yrs
    • Compensation: kr9.21m
  • Petra Jansson (46yo)

    General Counsel

    • Tenure: 2.3yrs
  • Marc Mlyn

    President of Raysearch Americas Inc

    • Tenure: 0yrs
  • Björn Hårdemark (42yo)

    Deputy Chief Executive Officer

    • Tenure: 4.1yrs
  • Peter Thysell (49yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
  • Peter Kemlin (45yo)

    Director of Sales & Marketing

    • Tenure: 0yrs
  • Kjell Eriksson (46yo)

    Chief Science Officer

    • Tenure: 4.1yrs

Board Members

  • Hans Wigzell (81yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: kr221.00k
  • Johan Löf (50yo)

    Founder

    • Tenure: 19.8yrs
    • Compensation: kr9.21m
  • Carl Bergendal (74yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: kr480.00k
  • Lars Wollung (58yo)

    Chairman of the Board

    • Tenure: 0.4yrs
  • Radhe Mohan

    Member of Scientific Advisory Board

    • Tenure: 16.8yrs
  • Anders Forsgren

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Anders Brahme (75yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • David Jaffray

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Johanna Öberg (44yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: kr152.00k
  • Britta Wallgren (56yo)

    Director

    • Tenure: 1.4yrs

Company Information

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


Key Information

  • Name: RaySearch Laboratories AB (publ)
  • Ticker: RAY B
  • Exchange: OM
  • Founded: 2000
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: kr5.602b
  • Shares outstanding: 34.28m
  • Website: https://www.raysearchlabs.com

Number of Employees


Location

  • RaySearch Laboratories AB (publ)
  • Sveavägen 44
  • Stockholm
  • Stockholm County
  • 111 34
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAY BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2003
0GRZLSE (London Stock Exchange)YesClass B SharesGBSEKJun 2003
RSLB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2003
27RDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2003
RAYBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 2003

Biography

RaySearch Laboratories AB (publ) operates as a medical technology company that develops software solutions for cancer treatment in North America, Asia, Europe, and internationally. It develops and markets  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 20:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.