NasdaqGS:ARAY

Stock Analysis Report

Executive Summary

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

-0.4%

ARAY

1.9%

US Medical Equipment

0.5%

US Market


1 Year Return

-26.3%

ARAY

15.6%

US Medical Equipment

6.8%

US Market

Return vs Industry: ARAY underperformed the US Medical Equipment industry which returned 15.6% over the past year.

Return vs Market: ARAY underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ARAYIndustryMarket
7 Day-0.4%1.9%0.5%
30 Day-10.4%-2.1%-0.8%
90 Day-32.1%-0.4%-0.9%
1 Year-26.3%-26.3%16.6%15.6%9.2%6.8%
3 Year-50.3%-50.3%72.2%67.0%45.6%36.2%
5 Year-62.5%-62.5%125.9%100.9%63.2%45.4%

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?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARAY ($2.66) is trading below our estimate of fair value ($4.16)

Significantly Below Fair Value: ARAY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARAY is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: ARAY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARAY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARAY is overvalued based on its PB Ratio (4.7x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

How is Accuray forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

62.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARAY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: ARAY is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: ARAY's loss is forecast to worsen by 0% next year.

Revenue vs Market: ARAY's revenue (2.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ARAY's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARAY's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has Accuray performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARAY is unprofitable, but has reduced losses over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare ARAY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARAY is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: ARAY has a negative Return on Equity (-32.94%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARAY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARAY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Accuray's financial position?


Financial Position Analysis

Short Term Liabilities: ARAY's short term assets ($344.1M) exceeds its short term liabilities ($192.2M)

Long Term Liabilities: ARAY's short term assets (344.1M) exceeds its long term liabilities (196.1M)


Debt to Equity History and Analysis

Debt Level: ARAY's debt to equity ratio (320.5%) is considered high

Reducing Debt: ARAY's debt to equity ratio has increased from 198.9% to 320.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ARAY's debt is covered by short term assets (assets are 2.152560x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARAY has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ARAY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate ARAY'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 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

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

4.1yrs

Average management tenure


CEO

Joshua Levine (61yo)

7yrs

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 ($USD4.64M) is about average for companies of similar size in the US market ($USD1.16M).

Compensation vs Earnings: Joshua's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.1yrs

Average Tenure

56yo

Average Age

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


Board Age and Tenure

7.4yrs

Average Tenure

70yo

Average Age

Experienced Board: ARAY's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$24,21503 Oct 19
Shigeyuki Hamamatsu
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares8,901
Max PriceUS$2.72
SellUS$49,03203 Oct 19
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares18,023
Max PriceUS$2.72
SellUS$4,93803 Oct 19
Andrew Kirkpatrick
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares1,815
Max PriceUS$2.72
BuyUS$32,75006 Sep 19
Joseph Whitters
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,500
Max PriceUS$2.62
SellUS$211,63105 Jul 19
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares56,426
Max PriceUS$3.75
SellUS$30,84005 Jul 19
Andrew Kirkpatrick
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares8,222
Max PriceUS$3.75
SellUS$7,76103 May 19
Patrick Spine
EntityIndividual
Role
Chief Administrative Officer
Senior VP & Chief Administrative Officer
Shares1,921
Max PriceUS$4.04
SellUS$29,98203 Apr 19
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares6,604
Max PriceUS$4.54
SellUS$63,34507 Dec 18
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares15,839
Max PriceUS$4.00
SellUS$7,33207 Dec 18
Andrew Kirkpatrick
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares1,784
Max PriceUS$4.11
SellUS$2,30207 Dec 18
Jesse Chew
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares560
Max PriceUS$4.11
BuyUS$117,00006 Nov 18
Joseph Whitters
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$4.68
BuyUS$118,75006 Nov 18
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$4.75
SellUS$201,52102 Nov 18
Joshua Levine
EntityIndividual
Role
Chief Executive Officer
President
Shares43,257
Max PriceUS$4.69
SellUS$7,81902 Nov 18
Jesse Chew
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,846
Max PriceUS$4.24

Ownership Breakdown


Management Team

  • Joshua Levine (61yo)

    President

    • Tenure: 7yrs
    • Compensation: US$4.64m
  • Greg Lichtwardt (65yo)

    Consultant

    • Tenure: 4.1yrs
    • Compensation: US$419.13k
  • Shig Hamamatsu (46yo)

    Senior VP & CFO

    • Tenure: 1yrs
    • Compensation: US$1.40m
  • Andy Kirkpatrick (56yo)

    Senior VP & COO

    • Tenure: 2.5yrs
    • Compensation: US$1.43m
  • Darl Moreland (60yo)

    Senior Vice President of Regulatory

    • Tenure: 6.2yrs
  • Patrick Spine (48yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 0yrs
    • Compensation: US$1.09m
  • Beth Kaplan

    Public Relations Director

    • Tenure: 5.3yrs
  • Jesse Chew (38yo)

    Senior VP

    • Tenure: 0yrs
  • Scott Chapman

    Senior Vice President of Global Service

    • Tenure: 0.8yrs

Board Members

  • Joe Whitters (60yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$271.20k
  • Lou Lavigne (70yo)

    Independent Chairman

    • Tenure: 9.5yrs
    • Compensation: US$240.00k
  • Joshua Levine (61yo)

    President

    • Tenure: 7yrs
    • Compensation: US$4.64m
  • Jim Hindman (58yo)

    Independent Director

    • Tenure: 0.08yrs
  • Robert Weiss (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$217.50k
  • Liz Dávila (75yo)

    Independent Vice Chairperson

    • Tenure: 11.1yrs
    • Compensation: US$223.75k
  • Jack Goldstein (71yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$215.00k
  • Beverly Huss (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$210.00k
  • Richard Pettingill (70yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$215.00k

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$236.158m
  • Shares outstanding: 88.78m
  • 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. The company offers the CyberKnife System, a robotic stereotactic radios ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:53
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.