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RaySearch Laboratories AB (RAY.B) AI Stock Analysis
RaySearch Laboratories AB
(Nasdaq OMX AB:RAY.B)
RaySearch Laboratories demonstrates strong fundamental health with exceptional cash conversion and low leverage. However, a disappointing Q2 marked by U.S. procurement delays, combined with a premium P/E multiple and bearish medium-term technical trends, present near-term headwinds. While strong backlogs and order intake suggest potential recovery, execution risks in the second half keep the overall score moderate.
RaySearch Laboratories AB (RAY.B) vs. iShares MSCI Sweden ETF (EWD)
- Market Cap
- SEK 602.69M
- Dividend Yield
- 1.97%
- Average Volume (3M)
- 162.82K
- Price to Earnings (P/E)
- 32.7
- Beta (1Y)
- 0.76
- Revenue Growth
- 1.42%
- EPS Growth
- 10.40%
- Country
- Sweden
- Employees
- 464
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Healthcare Information Services
RaySearch Laboratories AB Business Overview & Revenue Model
Company Description
RaySearch Laboratories AB (publ) is a global medical technology company dedicated to developing cutting-edge software solutions for cancer treatment. Its principal offering, RayStation, is a sophisticated treatment planning system that supports a vas...
How the Company Makes Money
RaySearch primarily makes money by licensing its oncology software to clinics and healthcare providers and then charging ongoing fees tied to software upkeep and expansion. Key revenue streams typically include: (1) Software license revenue from sell...
RaySearch Laboratories AB Earnings Call Summary
The call reported a clearly disappointing Q2 with meaningful declines in license and hardware sales (license -18%, hardware -38%, net sales -11%) and a compressed EBIT margin (10%). However, several positive indicators offset the weakness: order intake grew 23%, backlog remains robust at SEK 1.691 billion (SEK 670 million expected to convert within 12 months), LTM organic growth was 9% with a 22% LTM EBIT margin, notable strategic wins (Dana-Farber and other U.S. orders recovered in early Q3), clinical milestones (online adaptive treatments on TrueBeam), product releases and strengthened proton expertise, improved cash flow (Q2 free cash flow SEK 50 million) and active share repurchases. Management believes a strong H2 can restore the year’s financial trajectory but execution risk remains. Overall, the positive backlog, early Q3 order recoveries and recurring revenue stability balance the quarter’s operational weaknesses and timing risks.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated an unchanged operating margin target of at least 25% for 2026 and said it expects a strong H2 with recovery of orders slipped from Q2 (management said the Q2 slips should be recovered in Q3 and noted 9 RayStation orders in July worth ~USD 5m). Key numbers referenced alongside that guidance: Q2 net sales SEK 272m (down 11%, organic -8%), Q2 EBIT SEK 28m (10% margin) and recurring support revenue SEK 133m (49% of Q2 revenue); last 12 months net sales SEK 1.27bn (organic growth 9%) with EBIT SEK 277m (22% margin) and recurring support 41% of revenue. Order intake was up 23%, book-to-bill 1.1, order backlog SEK 1.691bn (SEK 670m expected to convert to sales in the next 12 months), free cash flow in Q2 SEK 50m, cash SEK 213m, advances from customers SEK 390m, share repurchases SEK 200m (995,558 shares, 2.9% of registered shares), and a new rolling credit facility of SEK 225m; management said achieving the margin target will require significant sales growth (aiming for double‑digit growth).
RaySearch Laboratories AB Financial Statement Overview
Summary
Fundamentally strong profile driven by systematic debt reduction, an impressive 22.8% return on equity, and excellent free cash flow generation, despite a slight recent moderation in TTM revenue and gross margins.
Income Statement
75PositiveBalance Sheet
84Very PositiveCash Flow
88Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27B | 1.34B | 1.19B | 1.02B | 843.65M | 641.67M |
| Gross Profit | 968.20M | 951.40M | 1.09B | 915.58M | 748.66M | 591.28M |
| EBITDA | 480.30M | 612.80M | 571.25M | 405.94M | 340.85M | 197.36M |
| Net Income | 213.00M | 227.80M | 203.51M | 81.57M | 23.78M | -47.31M |
Balance Sheet | ||||||
| Total Assets | 1.82B | 1.99B | 2.09B | 1.95B | 1.88B | 1.74B |
| Cash, Cash Equivalents and Short-Term Investments | 213.10M | 407.30M | 462.74M | 343.68M | 160.27M | 102.53M |
| Total Debt | 359.20M | 394.80M | 471.93M | 529.36M | 555.39M | 561.40M |
| Total Liabilities | 1.03B | 1.01B | 1.21B | 1.22B | 1.22B | 1.09B |
| Stockholders Equity | 788.40M | 985.30M | 876.71M | 735.23M | 657.16M | 628.31M |
Cash Flow | ||||||
| Free Cash Flow | 341.10M | 358.90M | 267.69M | 246.60M | 125.28M | -17.06M |
| Operating Cash Flow | 411.80M | 387.00M | 485.23M | 455.93M | 356.78M | 238.16M |
| Investing Cash Flow | -244.00M | -228.10M | -217.54M | -209.33M | -231.50M | -237.63M |
| Financing Cash Flow | -356.40M | -179.60M | -159.78M | -56.35M | -72.49M | -72.23M |
RaySearch Laboratories AB Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:RAY.B, the sentiment is Positive. The current price of 197.00 is above the 20-day moving average (MA) of 192.82, above the 50-day MA of 183.58, and above the 200-day MA of 192.61, indicating a bullish trend. The MACD of 4.66 indicates Negative momentum. The RSI at 66.72 is Neutral, neither overbought nor oversold. The STOCH value of 91.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RAY.B.
RaySearch Laboratories AB Peers Comparison
Overall Rating
SE:SECT.B74Outperform
SE:SUS68Neutral- SE:RAY.B67Neutral
SE:CRAD.B64Neutral
SE:MNTC58Neutral
SE:PAX57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SE:SECT.B | 74Outperform | SEK 67.51B | 105.81 | 30.26% | 0.38% | 13.94% | 5.70% |
| SE:SUS | 68Neutral | SEK 3.00B | 32.16 | ― | ― | 8.40% | 0.74% |
| SE:RAY.B | 67Neutral | SEK 6.95B | 32.66 | 22.81% | 1.97% | 1.42% | 10.40% |
| SE:CRAD.B | 64Neutral | SEK 783.39M | 16.48 | 13.23% | 0.43% | -8.76% | 103.87% |
| SE:MNTC | 58Neutral | SEK 435.95M | -90.48 | -3.61% | ― | 15.87% | 92.43% |
| SE:PAX | 57Neutral | SEK 1.54B | -303.85 | -1.22% | ― | 34.05% | -144.96% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SE:RAY.B | RaySearch Laboratories AB Class B | 202.80 | -16.56 | -7.55% | |
| SE:PAX | Paxman AB | 66.30 | -1.10 | -1.63% | |
| SE:CRAD.B | C-Rad AB Class B | 23.20 | -9.80 | -29.69% | |
| SE:SECT.B | Sectra AB Class B | 346.00 | 49.17 | 16.56% | |
| SE:MNTC | Mentice AB | 15.50 | 6.02 | 63.50% | |
| SE:SUS | Surgical Science Sweden AB | 58.85 | -23.65 | -28.67% |
RaySearch Laboratories AB Corporate Events
RaySearch Sets Date for Q3 2026 Interim Report and Webcast
RaySearch Laboratories AB is a Stockholm-based medical technology company specializing in innovative software for cancer treatment. Its core products include the RayStation treatment planning system and the RayCare oncology information system, comple...
RaySearch Joins IAEA’s Rays of Hope to Boost Global Radiotherapy Access
RaySearch Laboratories AB, a Swedish medtech firm focused on oncology software, develops systems that support treatment planning, clinical workflow, analytics, and treatment control for cancer clinics worldwide. The company’s products, includin...
RaySearch Highlights Integrated Automation and Analytics Suite at ASTRO 2026
RaySearch Laboratories, a Stockholm-based medical technology firm focused on oncology software such as RayStation and RayCare, is broadening its integrated platform for cancer care with advanced analytics and automation tools. Its global customer bas...
RaySearch expands U.S. footprint as California clinic goes live with integrated RayCare and TrueBeam
RaySearch Laboratories AB has achieved a new clinical milestone with the go-live of its RayCare oncology information system and RayStation treatment planning software at Advanced Radiation Therapeutics, a new freestanding radiation therapy center wit...
RaySearch and Accuray Deepen Partnership to Drive Adaptive Radiation Therapy
RaySearch Laboratories AB and U.S.-based Accuray Incorporated have signed a definitive agreement to expand their collaboration around online adaptive radiation therapy. The deal will integrate RaySearch’s RayStation treatment planning and RayCa...
RaySearch Balances Weaker Q2 Earnings With Strong Orders and Strategic Investments
RaySearch Laboratories reported a mixed second quarter, with order intake rising 23 percent to SEK 296 million while net sales fell 11 percent and operating profit dropped 23 percent, pressured mainly by delayed U.S. orders. Despite lower earnings an...
RaySearch wins USD 5 million in new U.S. RayStation orders
RaySearch Laboratories has secured nine new orders for its RayStation treatment planning system from U.S. customers at the start of the third quarter, with a combined value of about USD 5 million, most of which will be recognized as revenue in the cu...
RaySearch expands UNC proton therapy planning with advanced RayStation deployment
RaySearch Laboratories AB has secured an order from the University of North Carolina School of Medicine for additional RayStation licenses, expanding the U.S. institution’s long-standing use of the treatment planning system. The new deployment...
RaySearch to Present Q2 2026 Interim Report via Live Webcast
RaySearch Laboratories will publish its interim report for the second quarter of 2026 on August 13 at 7:30 CEST, followed by an English-language webcast presentation at 11:00 a.m. CEO and founder Johan Löf and CFO Nina Grönberg will present...
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.
Date of analysis: Aug 19, 2026