Current Analysis: Elekta AB [EKTAF]

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TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Sweden-based Elekta (EKTAF) develops, manufactures, and distributes treatment planning systems for neurosurgery and radiotherapy, including stereotactic radiosurgery and brachytherapy. The company's installed base of more than 5,000 linear accelerators, GammaKnife and Unity platforms, and software is used in more than 6,000 hospitals globally. The company's sales are evenly distributed across geographies, with North and South America accounting for 29%; Europe, the Middle East, and Africa accounting for 37%; and Asia-Pacific contributing the remainder.

The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.

Three key data points gauge Elekta AB or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.

EKTAF Price

Over the past year, Elekta's share price dropped 17.3% from $8.34 to $6.28 as of Monday’s market close.

If Elekta shares trade in the range of $5.00 to $10.00 this next year, its recent $6.28 share price might rise to $7.90 by next year. Of course, EKTAF price could also drop about the same $1.62 estimated amount or more.

My $1.62 upside estimate however, Flies in the face of market pessimism for this stock over the past two years. It does however mirror the stock’s previous recovery a pullback in September 2022 from near $5 per share to over $6.30.

EKTAF Dividend

Elekta AB has paid semi-annual variable dividends since September 2014 except for the year 2018.

EKTAF's most recent SA dividend of $0.12 was declared July 13th 2023 for shareholders of record February 26th and the dividend was paid March 1st.

A forward-looking $0.23 annual dividend yields 3.66% at Monday’s $6.28 share price.

EKTAF Returns

To put it all together, add the Elekta projected annual dividend of $0.23 to the estimated price upside of $1.62 to get a $1.85 estimated gross gain for the coming year.

At Monday’s $6.28 share price, a little under $1000 would buy 159 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.0767 per share.

Subtracting that likely $0.0767 brokerage cost from the $1.85 estimated gross gain reveals a net gain of $1.7733 X 159 shares = $281.95 for about a 28% estimated net gain on the year.

Furthermore, the $36.60 annual dividend income from $1K invested is 5.8 times more than the single share price. By these numbers, EKTAF is an ideal dividend dog.

You might choose to pounce on Elekta AB. It is a 52-year-old dividend-paying Stockholm-based surgical practice equipment firm that has an 8 of 9-year track record paying semi-annual variable dividends.

The exact track of Elekta AB's future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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