Elekta AB (publ) (EKTA-B.ST) Stock Analysis & Winston Score

Elekta is a Swedish medical technology company that makes machines and software used to treat cancer. Its main products are radiation therapy systems — devices that aim precise beams of radiation at tumors to destroy them without surgery. Hospitals and cancer clinics around the world are its primary customers, and Elekta is one of the two dominant global suppliers of radiation therapy equipment, competing mainly against Varian Medical Systems. The company earns money through hardware sales of its treatment machines, plus a growing stream of recurring revenue from software licenses, service contracts, and system upgrades. Elekta operates globally, with strong presence in Europe, North America, and Asia, and generates roughly $1.5 billion in annual revenue. Its installed base of machines creates a natural moat, since hospitals tend to stick with the same vendor for service and software over many years. The key growth driver is rising global cancer rates and expanding access to radiotherapy in emerging markets, while the main risk is intense pricing pressure from its larger rival and ongoing margin compression.