Sectra AB Class B (SECT.B) AI Stock Analysis

• Market Cap: €63.49B
• Dividend Yield: 0.34%
• Average Volume (3M): 134.69K
• Price to Earnings (P/E): 107.0
• Beta (1Y): 0.77
• Revenue Growth: 5.74%
• EPS Growth: 30.96%
• Country: SE
• Employees: 1,234
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.53
• Shares Outstanding: 182,017,440
• 10 Day Avg. Volume: 167,392
• 30 Day Avg. Volume: 134,694
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €346.04
• Price Target Upside: 9.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: kr346.00 ▲(9.29% Upside)

Sectra AB Class B's strong financial performance is overshadowed by bearish technical indicators and a high P/E ratio, suggesting overvaluation. The stock's low dividend yield further limits its attractiveness. The lack of earnings call data and corporate events means these factors do not influence the score.

Sectra AB Class B Business Overview & Revenue Model

Company Description

Sectra AB (publ) provides solutions for medical IT and cybersecurity sectors in Sweden, the United Kingdom, the Netherlands, and rest of Europe. The company operates through Imaging IT Solutions, Secure Communications, and Business Innovation segments. The Imaging IT Solutions segment develops and sells medical IT systems and services for managing, archiving, and presenting various types of medical images and patient information, as well as for operational follow-up and radiation dose monitoring; maintenance services in the form of support and system monitoring; and consulting services related to integration, system design, data migration, and business development. The Secure Communications segment develops and sells products and services for secure voice and data communications, and protection of society's sensitive IT infrastructure; and project-based development, as well as offers security and threat analyses and system monitoring services for control systems in society's critical operations. The Business Innovation segment develops and sells IT systems for planning and monitoring orthopedic surgery; and products for medical education and research projects. It serves public and private healthcare providers comprising hospitals, and hospital and private clinic chains; and government agencies, defense departments, energy companies. Sectra AB (publ) was incorporated in 1957 and is headquartered in Linköping, Sweden.

How the Company Makes Money

Sectra generates revenue through multiple channels, primarily by selling and licensing its medical imaging software and systems to hospitals and healthcare providers. The company has a subscription-based model for its cloud services, which provides ongoing revenue from its clients. Additionally, Sectra earns income from maintenance and support contracts for its products, ensuring continuous service and updates. The company also benefits from strategic partnerships with healthcare organizations and technology firms, which enhance its market reach and product offerings. Key factors contributing to its earnings include the growing demand for digital healthcare solutions and the increasing need for secure data management in the medical field.

Sectra AB Class B Financial Statement Overview

Summary

Sectra AB Class B exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is solid with low leverage and high equity efficiency. While cash flow generation is improving, further enhancements in cash flow management could bolster financial stability.

Income Statement

Sectra AB Class B demonstrates strong revenue growth with a 49.6% increase in the latest year, supported by a high gross profit margin of 88.65%. The net profit margin of 17.39% and EBIT margin of 22.32% indicate solid profitability. However, a slight decline in EBIT from the previous year suggests potential challenges in cost management.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.046, indicating minimal leverage risk. A high return on equity of 29.39% reflects efficient use of equity to generate profits. The equity ratio of 51.03% suggests a strong capital structure with substantial equity backing.

Cash Flow

Sectra AB Class B shows a healthy free cash flow growth rate of 15.74%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.54 and free cash flow to net income ratio of 0.88 highlight effective cash conversion. However, the lower operating cash flow coverage ratio compared to previous years suggests room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28B	3.24B	2.96B	2.35B	1.95B	1.63B
Gross Profit	2.92B	543.41M	557.55M	488.91M	1.71B	1.48B
EBITDA	854.94M	795.35M	615.06M	538.55M	477.28M	429.01M
Net Income	585.76M	563.37M	428.39M	374.96M	314.79M	275.51M
Balance Sheet
Total Assets	3.76B	3.76B	3.21B	2.74B	2.19B	1.65B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.34B	804.64M	945.24M	808.77M	454.85M
Total Debt	96.75M	87.46M	31.79M	82.26M	62.62M	73.45M
Total Liabilities	1.71B	1.84B	1.64B	1.44B	1.11B	756.33M
Stockholders Equity	2.05B	1.92B	1.57B	1.30B	1.08B	895.62M
Cash Flow
Free Cash Flow	999.08M	812.37M	75.58M	347.70M	542.55M	304.53M
Operating Cash Flow	1.10B	922.36M	326.33M	440.49M	616.92M	372.19M
Investing Cash Flow	-102.01M	-113.86M	-130.74M	-212.79M	-68.35M	-66.82M
Financing Cash Flow	-253.84M	-251.88M	-222.20M	-219.29M	-198.75M	-198.69M

Sectra AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 316.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SECT.B, the sentiment is Negative. The current price of 316.6 is below the 20-day moving average (MA) of 324.55, below the 50-day MA of 342.59, and above the 200-day MA of 294.26, indicating a neutral trend. The MACD of -7.40 indicates Negative momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 43.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SECT.B.

Sectra AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEVI	75 Outperform	4.25B	28.08	17.25%	1.40%	3.45%	4.22%
GETI.B	68 Neutral	57.42B	38.53	5.17%	2.18%	6.51%	-42.34%
SECT.B	59 Neutral	€63.49B	107.03	31.78%	0.34%	5.74%	30.96%
VITR	57 Neutral	17.87B	39.26	3.43%	0.83%	0.14%	0.00%
XVIVO	57 Neutral	5.77B	51.81	5.32%	―	17.78%	-7.83%
BICO	54 Neutral	1.49B	-4.68	0.00%	―	-21.56%	70.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%