One-glance verdict
Within fair range
$0.26 our estimate vs market $0.22
16% below our estimate
Fundamentals snapshot
Accuray Incorporated
ARAY · NCM · Healthcare · Medical Devices
Current price
$0.22
52-week range
$0.22 - $2.10
Market cap
$25.69M
Balance sheet
Distressed
-0.31x Concerning
Net debt $143.25M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -80.1% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 23.9% over 3 years.
- Risk Insider ownership is only 4.4% (peer median: 8.2%).
What this company does
Accuray Incorporated
Accuray Incorporated builds and sells advanced radiation therapy machines that hospitals use to treat cancer tumors with high precision. The company earns money from selling these large, expensive systems and also from service contracts, which create recurring revenue (a predictable stream of income from ongoing customer support). This is important because it gives the company a steady, reliable income from maintaining its machines in addition to the large, one-time sales.
How the company got here
Accuray was founded in 1990 by a Stanford neurosurgeon, John R. Adler, and started its commercial operations in 1992. A key moment in the company's history was the 2011 acquisition of TomoTherapy, which broadened its cancer treatment offerings. This move combined Accuray's specialty in highly precise radiation with TomoTherapy's advanced systems for more widespread tumors. Over the years, the company has focused on developing and refining its two main product lines, the CyberKnife and TomoTherapy platforms, to treat tumors throughout the body.
What it actually does
Accuray creates and sells advanced radiation therapy systems used by hospitals and cancer treatment centers to treat tumors. Think of their machines as highly precise tools that use radiation to target and destroy cancer cells while trying to protect the healthy tissue around them. In addition to selling the machines, Accuray also makes money by providing services like installation, training, and ongoing customer support. Their customers are the medical providers, not the patients themselves.
Products
This is the part of the business that sells the actual radiation therapy machines. The two main products are the CyberKnife and the TomoTherapy systems. The CyberKnife is a robotic system that delivers high-dose, targeted radiation from many different angles, making it suitable for complex and hard-to-reach tumors. The TomoTherapy system is designed like a CT scanner and delivers radiation in a helical (spiral) pattern, which is effective for treating larger tumors or multiple tumors at once. This segment represents a significant portion of the company's revenue through the upfront sale of these complex medical devices.
Services
After a hospital or clinic buys an Accuray system, this part of the business takes over. It provides ongoing support and maintenance to ensure the machines are working correctly. This includes installation of the systems, training for the medical staff who will use them, and service contracts for repairs and software updates. This creates a steady stream of recurring revenue (income that is likely to continue in the future) for the company, which is a significant and growing part of its business.
What management is betting on now
Accuray is currently focused on a transformation plan to improve its financial health and long-term growth. A key part of this strategy involves forming partnerships with other technology companies to enhance their own product features, such as imaging and treatment planning software. They are also working on making their operations more efficient to lower costs and improve profitability (the ability to make a profit). The company is also focused on expanding its service offerings to provide more value to customers over the lifetime of their machines.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-8.41M
FY2025 Q2
$927.00K
FY2025 Q3
$17.10M
FY2025 Q4
$-11.03M
FY2026 Q1
$10.28M
FY2026 Q2
$-19.01M
FY2026 Q3
$-6.07M
FY2026 Q4
$1.97M
Revenue
$100.92M
Net income
$-1.94M
Diluted EPS
—
Operating cash flow
$2.43M
Free cash flow
$1.97M
Fetching…
Sources
Revenue
$104.84M
Net income
$-11.80M
Diluted EPS
—
Operating cash flow
$-5.60M
Free cash flow
$-6.07M
Fetching…
Sources
Revenue
$102.24M
Net income
$-13.77M
Diluted EPS
-0.11
Operating cash flow
$-15.99M
Free cash flow
$-19.01M
Fetching…
Sources
Revenue
$93.94M
Net income
$-21.68M
Diluted EPS
-0.18
Operating cash flow
$12.18M
Free cash flow
$10.28M
Fetching…
Sources
Revenue
$127.54M
Net income
$1.12M
Diluted EPS
0.01
Operating cash flow
$-9.71M
Free cash flow
$-11.03M
Fetching…
Sources
Revenue
$113.24M
Net income
$-1.30M
Diluted EPS
-0.01
Operating cash flow
$18.06M
Free cash flow
$17.10M
Fetching…
Sources
Revenue
$116.17M
Net income
$2.54M
Diluted EPS
0.02
Operating cash flow
$1.80M
Free cash flow
$927.00K
Fetching…
Sources
Revenue
$101.55M
Net income
$-3.95M
Diluted EPS
-0.04
Operating cash flow
$-7.29M
Free cash flow
$-8.41M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.26 vs current price $0.22
Our most-likely fair value is $0.26 a share — about 19.5% away from today's price of $0.22, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $143.3M. Interest coverage -0.3x.
Net debt
$143.25M
Interest coverage
-0.31x
Accuray Incorporated's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ARAY
BASELINE
Accuray Incorporated
Total debt $183.87M Interest coverage -0.31x This is the baseline the peer rows are being compared against.
Total debt — Interest coverage 0.34x This peer still has a real interest-payment cushion, while ARAY does not.
Total debt $3.96M Interest coverage -302.03x Neither company has much profit cushion over interest right now.
Total debt $17.07M Interest coverage -1,018.57x Neither company has much profit cushion over interest right now.
Total debt $15.73M Interest coverage -1.68x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ARAY
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -80.1% last year — the company lost money on shareholders' equity.
-
Net debt grew 23.9% over 3 years.
-
Insider ownership is only 4.4% (peer median: 8.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-0.90x
P/B
0.62x
P/S
0.06x
EV/EBITDA
-47.89x
PEG ratio
29.49x
Profitability
How much profit each dollar creates
Gross margin
27.7%
Operating margin
6.2%
Net margin
-12.2%
ROE
-80.1%
ROA
-1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
4.41x
Current ratio
1.50x
Quick ratio
0.66x
Total debt
$183.87M
Total cash
$40.62M
Growth
How the business has been compounding
Revenue TTM
$401.95M
Revenue 5Y CAGR
-1.7%
EPS TTM
-0.40
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-6.98M
Free CF TTM
$-12.84M
FCF margin
-3.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—