OTCPK:EKTA.F

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 21.2% below its fair value

Earnings are forecast to grow 20.51% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

High growth potential with excellent balance sheet 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.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.7%

EKTA.F

2.3%

US Medical Equipment

0.6%

US Market


1 Year Return

-10.6%

EKTA.F

30.3%

US Medical Equipment

24.6%

US Market

Return vs Industry: EKTA.F underperformed the US Medical Equipment industry which returned 28.4% over the past year.

Return vs Market: EKTA.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

EKTA.FIndustryMarket
7 Day2.7%2.3%0.6%
30 Day-6.5%4.3%3.0%
90 Day-5.1%13.8%10.6%
1 Year-10.6%-10.6%31.3%30.3%27.3%24.6%
3 Year41.0%41.0%96.4%90.7%50.5%40.8%
5 Year16.4%16.4%133.4%108.5%78.9%59.1%

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

No news available

Valuation

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

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EKTA.F ($12.09) is trading below our estimate of fair value ($15.35)

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


Price To Earnings Ratio

PE vs Industry: EKTA.F is good value based on its PE Ratio (37.6x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: EKTA.F is poor value based on its PE Ratio (37.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: EKTA.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: EKTA.F is overvalued based on its PB Ratio (5.3x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

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

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EKTA.F's forecast earnings growth (20.5% per year) is above the savings rate (1.7%).

Earnings vs Market: EKTA.F's earnings (20.5% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: EKTA.F's revenue (9.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: EKTA.F's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EKTA.F's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Elekta performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EKTA.F has high quality earnings.

Growing Profit Margin: EKTA.F's current net profit margins (7.8%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: EKTA.F's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: EKTA.F'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.F had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Medical Equipment industry average (31%).


Return on Equity

High ROE: EKTA.F's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elekta's financial position?


Financial Position Analysis

Short Term Liabilities: EKTA.F's short term assets (SEK12.7B) exceed its short term liabilities (SEK12.3B).

Long Term Liabilities: EKTA.F's short term assets (SEK12.7B) exceed its long term liabilities (SEK5.0B).


Debt to Equity History and Analysis

Debt Level: EKTA.F's debt to equity ratio (58.2%) is considered high.

Reducing Debt: EKTA.F's debt to equity ratio has reduced from 79.8% to 58.2% over the past 5 years.

Debt Coverage: EKTA.F's debt is well covered by operating cash flow (27.9%).

Interest Coverage: EKTA.F's interest payments on its debt are well covered by EBIT (15.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: EKTA.F's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: EKTA.F's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: EKTA.F's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.7%), EKTA.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EKTA.F's dividends in 3 years are forecast to be well covered by earnings (41.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Richard Hausmann (59yo)

3.6yrs

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 ($USD0.00) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: EKTA.F's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

62yo

Average Age

Experienced Board: EKTA.F's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: EKTA.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$82,74819 Dec 19
John Lapré
EntityIndividual
Shares6,466
Max PriceUS$12.80
BuyUS$117,31327 Feb 19
Jan Secher
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$11.79

Ownership Breakdown

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


Management Team

  • Laurent Leksell (67yo)

    Founder & Chairman

    • Tenure: 6.3yrs
    • Compensation: kr1.28m
  • Richard Hausmann (59yo)

    President & CEO

    • Tenure: 3.6yrs
    • Compensation: kr14.82m
  • Karin Nyberg (53yo)

    Executive Vice President of Human Resources

    • Tenure: 3yrs
  • Oskar Bosson (43yo)

    Executive Vice President of Corporate Communications & Public Affairs

    • Tenure: 1.9yrs
  • Caroline Mofors (47yo)

    Senior VP

    • Tenure: 5.3yrs
  • Jonas Bolander (53yo)

    General Counsel

    • Tenure: 3.2yrs
  • Gustaf Salford (42yo)

    CFO & Executive VP

    • Tenure: 2.5yrs
  • Ioannis Panagiotelis (47yo)

    Chief Marketing & Sales Officer

    • Tenure: 2.4yrs
  • Steve Wort (56yo)

    Chief Operating Officer

    • Tenure: 2.3yrs
  • Cecilia Ketels

    Head of Investor Relations

    • Tenure: 0.7yrs

Board Members

  • Jan Secher (62yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: kr635.00k
  • Wolfgang Reim (63yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: kr575.00k
  • Tomas Puusepp (64yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: kr500.00k
  • Laurent Leksell (67yo)

    Founder & Chairman

    • Tenure: 6.3yrs
    • Compensation: kr1.28m
  • Johan Malmquist (58yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: kr635.00k
  • Birgitta Göransson (62yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: kr725.00k
  • Caroline Cooke (38yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: kr635.00k
  • Cecilia Wikström (54yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: kr575.00k

Company Information

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


Key Information

  • Name: Elekta AB (publ)
  • Ticker: EKTA.F
  • Exchange: OTCPK
  • Founded: 1972
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr44.150b
  • Listing Market Cap: kr4.640b
  • 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 Analysis2020/01/22 23:59
End of Day Share Price2020/01/21 00:00
Earnings2019/10/31
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.