Why Elekta AB (publ) (STO:EKTA B) Could Have A Place In Your Portfolio
Attractive stocks have exceptional fundamentals. In the case of Elekta AB (publ) (STO:EKTA B), there's is a company with strong financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Elekta here.
Excellent balance sheet with reasonable growth potential
EKTA B is expected to churn out cash in the short term, with its operating cash flow predicted to expand at a triple-digit growth rate. This is expected to flow down into an impressive return on equity of 21% over the next couple of years. EKTA B's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that EKTA B manages its cash and cost levels well, which is a key determinant of the company’s health. EKTA B appears to have made good use of debt, producing operating cash levels of 0.3x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Elekta, there are three essential factors you should further examine:
Historical Performance: What has EKTA B's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is EKTA B worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EKTA B is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EKTA B? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
