NasdaqGS:ARAY

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Executive Summary

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body in the Americas, Europe, the Middle East, India, Japan, Africa, and rest of the Asia Pacific region. More Details


Snowflake Analysis

Imperfect balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ARAY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

ARAY

0.6%

US Medical Equipment

1.3%

US Market


1 Year Return

-12.5%

ARAY

17.1%

US Medical Equipment

15.8%

US Market

Return vs Industry: ARAY underperformed the US Medical Equipment industry which returned 16.5% over the past year.

Return vs Market: ARAY underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

ARAYIndustryMarket
7 Day1.2%0.6%1.3%
30 Day2.7%-2.4%-4.1%
90 Day15.0%10.6%8.4%
1 Year-12.5%-12.5%18.1%17.1%18.4%15.8%
3 Year-41.0%-41.0%70.9%66.5%38.2%29.0%
5 Year-52.3%-52.3%144.0%125.3%84.9%64.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

57.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARAY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARAY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARAY is poor value based on its PE Ratio (57.5x) compared to the US Medical Equipment industry average (49.1x).

PE vs Market: ARAY is poor value based on its PE Ratio (57.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ARAY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ARAY is good value based on its PB Ratio (3.5x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Accuray forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-70.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARAY's earnings are forecast to decline over the next 3 years (-70.2% per year).

Earnings vs Market: ARAY's earnings are forecast to decline over the next 3 years (-70.2% per year).

High Growth Earnings: ARAY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARAY's revenue (5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ARAY's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ARAY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Accuray performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARAY has a large one-off gain of $13.0M impacting its June 30 2020 financial results.

Growing Profit Margin: ARAY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARAY has become profitable over the past 5 years, growing earnings by 26.6% per year.

Accelerating Growth: ARAY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARAY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1.8%).


Return on Equity

High ROE: ARAY's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Accuray's financial position?


Financial Position Analysis

Short Term Liabilities: ARAY's short term assets ($357.5M) exceed its short term liabilities ($182.3M).

Long Term Liabilities: ARAY's short term assets ($357.5M) exceed its long term liabilities ($245.0M).


Debt to Equity History and Analysis

Debt Level: ARAY's debt to equity ratio (297.5%) is considered high.

Reducing Debt: ARAY's debt to equity ratio has increased from 264.5% to 297.5% over the past 5 years.

Debt Coverage: ARAY's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ARAY's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Joshua Levine (62 yo)

7.92yrs

Tenure

US$4,644,992

Compensation

Mr. Joshua H. Levine, also known as Josh, has been an Independent Director of Natus Medical Inc. since June 22, 2018. He has been the Chief Executive Officer and President at Accuray Incorporated since Oct ...


CEO Compensation Analysis

Compensation vs Market: Joshua's total compensation ($USD4.64M) is above average for companies of similar size in the US market ($USD1.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joshua Levine
President7.92yrsUS$4.64m1.35%
$ 2.8m
Shigeyuki Hamamatsu
Senior VP & CFO1.92yrsUS$1.40m0.051%
$ 107.6k
Patrick Spine
Senior VP & Chief Administrative Officerno dataUS$1.09m0.020%
$ 41.3k
Michael Hoge
Senior Vice President of Global Operations0.58yrno data0.14%
$ 290.9k
Darl Moreland
Senior VP of Regulatory7.08yrsno datano data
Jesse Chew
Senior VPno datano data0.025%
$ 51.7k
Beth Kaplan
Public Relations Director6.25yrsno datano data
Scott Chapman
Senior Vice President of Global Service1.67yrsno datano data
Suzanne Winter
Chief Commercial Officer and Senior VP of R&D0.92yrno datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: ARAY's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joshua Levine
President7.92yrsUS$4.64m1.35%
$ 2.8m
Joseph Whitters
Independent Director2.17yrsUS$271.20k0.16%
$ 332.1k
Louis Lavigne
Independent Chairman10.42yrsUS$240.00k0.22%
$ 460.0k
James Hindman
Independent Director1yrno datano data
Elizabeth Dávila
Independent Vice Chairperson12yrsUS$223.75k0.16%
$ 334.6k
Jack Goldstein
Independent Director10.33yrsUS$215.00k0.15%
$ 309.5k
Beverly Huss
Independent Director2.67yrsUS$210.00k0.055%
$ 114.7k
Richard Pettingill
Independent Director8.33yrsUS$215.00k0.12%
$ 258.3k
Anne Le Grand
Independent Director0.17yrno datano data

7.9yrs

Average Tenure

69yo

Average Age

Experienced Board: ARAY's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Accuray Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Accuray Incorporated
  • Ticker: ARAY
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$209.756m
  • Shares outstanding: 91.20m
  • Website: https://www.accuray.com

Number of Employees


Location

  • Accuray Incorporated
  • 1310 Chesapeake Terrace
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARAYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2007
XEJDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2007
0H8ILSE (London Stock Exchange)YesCommon StockGBUSDFeb 2007

Biography

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body in the Americas, Europe, the Middle East, India, Japan, Africa, and rest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:01
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.