Current Analysis: Elekta

person using MacBook Pro on table

Image Source: Unsplash

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 AB (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.

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 best tell whether any company has made, is making, and will make money.

EKTAF Price

Over the past year, Elekta AB share price increased about 16.8% from $6.07 to $7.09 as of Tuesday’s market close.

If EKTAF trades in the range of $5.00 to $10.00 this next year, its recent $7.09 share price might rise to $8.10 by next year. Of course, EKTAFs price could drop about the same $1.01 estimated amount, or more.

My annual upside estimate of $1.01 however, about equal to the annual price upside for EKTAF over the past year.

EKTAF Dividend

Elekta has declared variable semi-annual  dividends since June, 2014. EKTAF’s most recent SA dividend of $0.11 was declared July 13th to shareholders of record February 26th. The payout will be made March 1st.  There is still time to get this SA dividend!

A forward looking $0.22 annual dividend yields 3.10% at Tuesday’s $7.09 share price.

EKTAF Returns

To put it all together, add the estimated annual dividend of $0.22 to the estimated price upside of $1.01 to find a $1.23 gross gain.

At Tuesday’s $7.09 share price, a little under $1000 would buy 141 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.07 per share.

Subtracting that likely $0.07 brokerage cost from the $1.23 gross gain produces a net gain of $1.16 X 141 shares = $163.56 for a 16.4% estimated net gain.

You might choose to pounce on Elekta AB. It is a 52 year old dividend paying Stockhholm-based healthcare equipment company.

Furthermore, the estimated $31.00 of annual dividend income from $1k invested is about 4.37 times greater than EKTAF’s recent $7.09 single share price.

The exact track of EKTAF’s ongoing future price and dividend will be determined by market action.

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


More By This Author:

Current Analysis: ConvaTec Group
Current Analysis: BioGaia (BIOGY)
Current Analysis: Sabra Health Care REIT

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.