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Elekta AB
(OTC:EKTAY)
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Rating:60Neutral
Price Target:
$6.00
â–²(1.35% Upside)
Action:Reiterated
Date:08/28/26
The score is anchored by a mixed financial profile: strong free cash flow contrasts with a sharp TTM revenue drop, net losses, and negative returns, with leverage trending higher. The earnings call improves the outlook due to reaffirmed guidance, sizable cost savings, and clear margin progress, but persistent revenue/order and regional headwinds keep the overall score moderate. Technicals are broadly neutral, while valuation is helped by the dividend but limited by a negative P/E.
Positive Factors
Strong cash generation
Strong operating and free cash flow provides internal funding for R&D, debt service and investment. Cash generation exceeding accounting earnings also supports resilience during the turnaround, although working-capital movements remain a monitoring point.
Negative Factors
Severe revenue decline and negative profitability
The sharp revenue contraction and return to net losses indicate materially weaker operating leverage and execution than in prior profitable years. Even with stable gross margin, restoring sustainable growth and earnings remains a central medium-term risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Strong operating and free cash flow provides internal funding for R&D, debt service and investment. Cash generation exceeding accounting earnings also supports resilience during the turnaround, although working-capital movements remain a monitoring point.
Read all positive factors
Elekta AB (EKTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.09B
Dividend Yield4.76%
Average Volume (3M)847.00
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth2.77%
EPS Growth-264.93%
CountryUS
Employees4,102
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.98
Shares Outstanding368,587,650
10 Day Avg. Volume495
30 Day Avg. Volume847
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)2.92
Price to Sales (P/S)1.26
P/FCF Ratio8.98
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Elekta AB Business Overview & Revenue Model
Company Description
Elekta AB (publ) is a global medical technology company dedicated to developing and delivering advanced clinical solutions for the treatment of cancer and brain disorders. Its comprehensive portfolio includes innovative radiotherapy systems such a...
How the Company Makes Money
Elekta makes money primarily by selling capital equipment used in radiation therapy and radiosurgery, and by generating recurring revenue from software, service, and support tied to those systems.
1) Capital equipment sales (one-time or milestone...
Elekta AB Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong execution on cost savings and clear improvements in margins and cash generation provided encouraging evidence that the company’s turnaround is underway. However, top‑line challenges remain — net sales declined, solutions sales were weak, China and APJ showed regional softness, rolling orders lagged and working capital rose. Management reaffirmed FY guidance and expects Q2 revenue improvement driven by backlog and U.S. product momentum. Overall the company appears to be stabilizing and improving profitability while still working through material revenue and regional challenges.Positive Updates
Significant margin expansion
Adjusted gross margin improved to 42.6% in Q1 (up from ~37% year‑on‑year) and adjusted EBIT margin rose to 11.2% (EBIT cash margin 11.4%). Management attributes the uplift to price increases, higher software & service mix and lower cost levels from the new operating model; a SEK 53m tariff refund (~150 bps) was a one‑off positive but underlying margin improvement remained strong.
Negative Updates
Net sales decline and Solutions weakness
Net sales decreased by 2% in constant currency in Q1. Solutions sales were particularly weak, down ~9% year‑on‑year, offset partly by service growth. Management acknowledged the company is still not growing with the broader radiotherapy market (management cites ~6% market growth).
Read all updates
Q1-2027 Updates
Positive
Negative
Significant margin expansion
Adjusted gross margin improved to 42.6% in Q1 (up from ~37% year‑on‑year) and adjusted EBIT margin rose to 11.2% (EBIT cash margin 11.4%). Management attributes the uplift to price increases, higher software & service mix and lower cost levels from the new operating model; a SEK 53m tariff refund (~150 bps) was a one‑off positive but underlying margin improvement remained strong.
Read all positive updates
Company Guidance
Elekta reaffirmed fiscal 2026/27 guidance of net sales growth of 2–4% in constant currency and an adjusted EBIT margin target of 12.5–13.5%, and said it expects positive sales growth in Q2 (and for the first half); Q1 actuals were net sales −2% (solutions −9%, service +5%), book‑to‑bill ~1.11 with order growth ~3%, adjusted gross margin 42.6% (vs 37% LY) and adjusted EBIT margin 11.2% (EBIT cash margin 11.4%), net income SEK 261m and adj. EPS SEK 0.69; free cash flow before dividends & M&A was negative SEK 266m (improved SEK 154m year‑on‑year) despite a seasonal inventory build. Management highlighted more than SEK 500m of operating‑model savings (headcount down from ~4,500 to below 4,000), continued R&D spend around 10% of revenue, an EUR 100m EIB R&D facility, a SEK 53m tariff refund in Q1 (≈150 bps impact overall, ≈490 bps in Americas) with another ~USD 3m expected in Q2, FX headwinds of ~20–30 bps on margins, COGS inflation roughly 3% and ongoing COGS‑reduction programs, and cited a ~6% global radiotherapy market growth with Americas/Europe expected to drive near‑term revenue recovery and China/TIMEA improving into Q2.Elekta AB Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
56
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.45B | 16.39B | 18.02B | 18.12B | 16.87B | 14.55B |
| Gross Profit | 6.36B | 6.13B | 6.75B | 6.80B | 6.35B | 5.44B |
| EBITDA | 1.89B | 1.65B | 2.19B | 3.29B | 2.57B | 2.69B |
| Net Income | -363.62M | -509.74M | 237.00M | 1.30B | 943.00M | 1.15B |
Balance Sheet | ||||||
| Total Assets | 26.61B | 26.82B | 28.98B | 31.41B | 29.61B | 26.30B |
| Cash, Cash Equivalents and Short-Term Investments | 2.30B | 3.17B | 2.96B | 2.78B | 3.27B | 3.07B |
| Total Debt | 6.81B | 7.30B | 7.57B | 7.25B | 6.67B | 5.70B |
| Total Liabilities | 19.03B | 19.71B | 20.13B | 20.63B | 19.88B | 17.39B |
| Stockholders Equity | 7.54B | 7.06B | 8.80B | 10.78B | 9.73B | 8.91B |
Cash Flow | ||||||
| Free Cash Flow | 2.16B | 2.30B | 1.06B | 817.00M | 400.00M | 450.00M |
| Operating Cash Flow | 2.53B | 2.42B | 2.63B | 2.46B | 1.96B | 1.86B |
| Investing Cash Flow | -1.14B | -1.05B | -1.67B | -1.92B | -1.61B | -1.65B |
| Financing Cash Flow | -1.87B | -1.15B | -607.00M | -1.10B | -129.00M | -1.73B |
Elekta AB Technical Analysis
Negative
5.92
Price Trends
5.25
Positive
5.53
Negative
5.74
Negative
Market Momentum
0.06
Positive
49.50
Neutral
-4.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EKTAY, the sentiment is Negative. The current price of 5.92 is above the 20-day moving average (MA) of 5.60, above the 50-day MA of 5.25, and above the 200-day MA of 5.74, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of -4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EKTAY.
Elekta AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.10B | 22.75 | 13.52% | 1.51% | 8.93% | -5.14% | |
65 Neutral | $50.32B | 55.64 | 3.79% | 2.03% | -2.56% | -40.38% | |
60 Neutral | $2.09B | -55.41 | -4.66% | 4.82% | 2.77% | -264.93% | |
57 Neutral | $13.35B | -12.66 | -16.60% | 0.16% | 5.36% | -632.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
EKTAY
Elekta AB
5.46
0.73
15.42%
ATR
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127.41
-8.83
-6.48%
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BDX
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184.74
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25.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.