Elekta (EKTAB SS) Sweden
Healthcare
EKTAB delivered a Q2 profitability beat despite tariffs and FX headwinds, while sales were only slightly soft, helping spark a sharp rebound in the shares. Adjusted EBIT came in 6.5% above expectations and margins rose to 10.1%, supported by mix and pricing. Although China and the US weighed on revenue, order intake grew and China’s book-to-bill ratio exceeded 1.3x suggesting a potential recovery ahead. H2 should be stronger, with improving China trends and US approval of Elekta Evo expected. The new CEO’s restructuring plan - cutting ~450 jobs (10%), simplifying the organisation and cancelling low-quality orders - targets SEK500m+ annual savings. With a robust SEK34bn backlog and solid uptake of new products, AlphaValue maintains a positive view as the turnaround gains traction.
Edition: 225
- 28 November, 2025
Elekta (EKTAB SS) Sweden
Healthcare
Median consensus Y3 revenue growth for Willis Welby’s mid cap MedTech coverage remains high at 7.3%, but financial productivity is not generally impressive and with a median implied to Y3 EBITM ratio of 145, expectations are almost all too high. However, EKTAB is one stock that does look particularly attractive. Willis Welby likes the product lines here as well as the financial productivity. And this is a standout cheap share (the implied to Y3 EBITM ratio is in the 50s - significantly below sector peers). Yes, investors should be wary of lumpy orders and delivery, but the positive share price reaction to disappointing numbers recently confirms just how nervous the market is. 50%+ upside.
Edition: 181
- 08 March, 2024
Midcap Medtech & Staples have performed well but both look challenging
The share price performance for Willis Welby’s Medtech group has been startling YTD (+23.8%), but revisions are not impressive (the median move in consensus Y2 EBIT over the last 3 months is now a CUT of 1.8%), they have problems with financial productivity and levels of implied to Y3 EBITM ratios are very demanding. Willis Welby highlights Elekta and COMET but cannot make their maths work elsewhere. Financial productivity is also an issue in their Staples coverage and the median consensus Y3 revenue growth number is just 2.8%. Expectations ratios are not as extreme as Medtech's but are still demanding. Glanbia still makes sense, but they struggle elsewhere.
Edition: 160
- 12 May, 2023