Accuray Incorporated

Accuray Incorporated

ARAYยทNASDAQ

$0.48

+3.5%
HealthcareMedical - Devices

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy System, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.

At a Glance

Live Snapshot
Market Cap$56.66M
EPS-0.0155
P/E Ratio-88.49
Earnings Date08/19/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -88.5).

Valuation inputs: P/E -88.5, earnings yield N/A, momentum +3.5%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -2.0%, ROIC -3.7%).

Profitability stack: net margin -0.4%, ROE -2.0%, ROIC -3.7%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +82.7%, momentum +3.5%, net margin -0.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Accuray Incorporated Market vs Earnings Trajectory

ARAY ยท NASDAQ

Loading price and EPS data...

Accuray Incorporated

Accuray Incorporated Fair Value Envelope

ARAY ยท NASDAQ

Our analysis suggests that ARAY has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $0.477, this represents a potential HIDDEN relative to our calculated worth for Accuray Incorporated.

Intrinsic Value
Current Price: $0.477
3Y-73.0%
5Y-136.0%
10Y-95.0%
3Y+7.0%
5Y+20.0%
10Y+15.0%
3Y-70.0%
5Y-142.0%
10Y-94.0%
3Y-219.0%
5Y-295.0%
10Y-91.0%
3Y-20.0%
5Y+9.0%
10Y-122.0%
3Y-1.0%
5Y-4.0%
10Y-
Accuray Incorporated

Accuray Incorporated Profit Bridge

ARAY ยท NASDAQ
Revenue458.50M
Cost of Goods Sold (311.54M)
Gross Profit146.97M
Operating Expenses (139.13M)
Operating Income7.84M
Interest Expense (12.95M)
Other Income/Expense-6.71M
Pretax Income1.13M
Income Tax (2.73M)
Net Income-1.59M
Net Income
-1.59M

Profitability Analysis

Gross Margin

32.1%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

1.7%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

-0.3%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Effective Tax Rate

240.3%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

32.05%
Gross Profit Margin
3Y-14.0%
5Y-18.0%
10Y-19.0%
1.71%
Operating Profit Margin
1414%
3Y-10.0%
5Y+51.0%
10Y-240.0%
-0.35%
Net Profit Margin
-90%
3Y-72.0%
5Y-135.0%
10Y-95.0%
-1.96%
Return on Equity
-94%
3Y-81.0%
5Y-132.0%
10Y-95.0%
-0.34%
Return on Assets
-90%
3Y-70.0%
5Y-143.0%
10Y-94.0%
-3.69%
Return on Invested Capital
-2206%
3Y-227.0%
5Y-540.0%
10Y+106.0%
ARAY

Accuray Incorporated Cash Conversion Engine

ARAY ยท NASDAQ
Net Income-1.59M
Depreciation & Amortization6.15M
Stock-Based Compensation10.20M
Change in Working Capital-18.20M
Others6.15M
Capital Expenditures-8.52M
Free Cash Flow-5.66M

Cash Flow Quality Analysis

FCF Conversion Rate

355.9%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

298.0%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

+63.5%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$18.20M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Accuray Incorporated Funding & Solvency Profile

ARAY ยท NASDAQ
Cash & Cash Equivalents38.07M
Net Receivables64.57M
Inventory156.63M
Other Current Assets33.95M
Total Current Assets293 M
Property, Plant & Equipment57.90M
Goodwill & Intangible Assets57.88M
Long-Term Investments0.00
Other Non-Current Assets38.60M
Total Non-Current Assets97 M
Total Assets
447.60M

Financial Health Analysis

Current Ratio

1.42x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

9.73x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

87 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

66% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Accuray Incorporated Street Expectations Map

ARAY ยท NASDAQ

Wall Street analysts project that ARAY stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 2.00, with estimates ranging from a low of 2.00 to a high of 2.00.

Lowest Target
2.00
319.29%
Consensus Target
2.00
319.29%
Highest Target
2.00
319.29%

The consensus 1-year price target stands at 2.00, with estimates ranging from a low of 2.00 to a high of 2.00.

Analyst Consensus Analysis

Upside Potential

+319.3%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Accuray Incorporated Insider Positioning

ARAY ยท NASDAQ

During the last 12 months, insiders have purchased $216K and sold $23K worth of ARAY shares, resulting in $193K of net buying activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

250.0K

134.67K

Sold

0

0.00

Net Activity

+135K

+$135K

6-9 Months

Bought

20.0K

19.41K

Sold

0

0.00

Net Activity

+19K

+$19K

9-12 Months

Bought

50.0K

62.33K

Sold

16.7K

22.92K

Net Activity

+39K

+$39K

Top Buyers

1
MSF

Mayer Steven F

Director

250.0K sharesโ€ข3 transactions

$135K

2
WJE

Whitters Joseph E

Director

50.0K sharesโ€ข1 transactions

$62K

3
LNSR

La Neve Stephen R.

Director, Officer: Ceo

20.0K sharesโ€ข1 transactions

$19K

Top Sellers

1
WSC

Winter Suzanne C

Officer: President And Ceo

16.7K sharesโ€ข1 transactions

$23K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $193K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

9.44:1

Exceptional buy/sell ratio. Buying dramatically outweighs sellingโ€”one of the strongest possible insider signals.

Insider Participation

High Buying

3 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.

No Dividend Yield Data

ARAY has not reported any dividend yield values in the available annual periods.

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aray Dividend History

ARAY
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%