RaySearch Laboratories AB (publ)
RaySearch Laboratories AB (publ) Fundamental Analysis
RaySearch Laboratories AB (publ) (RSLBF) shows moderate financial fundamentals with a PE ratio of 32.75, profit margin of 16.94%, and ROE of 24.79%. The company generates $1.3B in annual revenue with strong year-over-year growth of 16.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RSLBF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRSLBF demonstrates superior asset utilization.
Valuation Score
ModerateRSLBF shows balanced valuation metrics.
Growth Score
ModerateRSLBF shows steady but slowing expansion.
Financial Health Score
ExcellentRSLBF maintains a strong and stable balance sheet.
Profitability Score
ExcellentRSLBF achieves industry-leading margins.
Key Financial Metrics
Is RSLBF Expensive or Cheap?
P/E Ratio
RSLBF trades at 32.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RSLBF's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values RaySearch Laboratories AB (publ) at 7.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.67 times EBITDA. This signals the market has high growth expectations.
How Well Does RSLBF Make Money?
Net Profit Margin
For every $100 in sales, RaySearch Laboratories AB (publ) keeps $16.94 as profit after all expenses.
Operating Margin
Core operations generate 21.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.79 in profit for every $100 of shareholder equity.
ROA
RaySearch Laboratories AB (publ) generates $11.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RaySearch Laboratories AB (publ) generates strong operating cash flow of $378.99M, reflecting robust business health.
Free Cash Flow
RaySearch Laboratories AB (publ) generates strong free cash flow of $150.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.40 in free cash annually.
FCF Yield
RSLBF converts 1.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How RSLBF Stacks Against Its Sector Peers
| Metric | RSLBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.75 | 28.25 | Worse (Expensive) |
| ROE | 24.79% | 780.00% | Weak |
| Net Margin | 16.94% | -20122.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 0.30 | Weak (High Leverage) |
| Current Ratio | 1.70 | 4.66 | Neutral |
| ROA | 11.43% | -14687.00% (disorted) | Strong |
RSLBF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RaySearch Laboratories AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.74%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
303.71%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
51.57%
Industry Style: Defensive, Growth, Innovation
High Growth