C-Rad (OM:CRAD B) Stock Faces High P/E As Q2 EPS Strengthens Earnings Narrative

C-Rad (OM:CRAD B) has just posted Q2 2026 numbers, with revenue of 121.7 million SEK and basic EPS of 0.72 SEK. This puts fresh detail around the company’s recent earnings profile. Over the past few quarters, C-Rad has seen revenue move between 104.7 million SEK and 121.7 million SEK, while basic EPS has ranged from a loss of 0.239644 SEK in early 2025 to 0.72 SEK most recently. This gives investors a clearer view of how the earnings line now sits. With trailing net profit margins reported at 7.0% versus 6.9% a year ago, this update gives the market a cleaner read on how efficiently revenue is translating into profit.

See our full analysis for C-Rad.

With the headline numbers on the table, the next step is to set these results against the most widely followed narratives around C-Rad to see which stories hold up and which need a rethink.

See what the community is saying about C-Rad

Net income trend gives more context than single quarter

• Across the last six quarters, C-Rad's net income moved from a loss of SEK 8.1 million in Q1 2025 to SEK 24.2 million profit in Q2 2026, with interim figures of SEK 4.0 million, SEK 12.9 million, SEK 1.7 million and SEK 11.2 million in between.
• Analysts' consensus narrative leans on growing recurring service revenue and operational efficiencies. This sequence of profits helps show how earnings have become less dependent on any one period, even though the company still faces swings from large regional orders and timing effects.
  • The trailing 12 month net income of SEK 49.9 million and net margin of 7% sit alongside commentary about a softer order intake and China related lumpiness, which supports the idea that recurring service contracts are helping smooth, rather than eliminate, that volatility.
  • At the same time, the move from a loss in early 2025 to recent profits does not remove the risk highlighted in the consensus view that heavy reliance on big orders and region specific catalysts can still affect short term results.

High quality earnings claim vs 7% margin

• C-Rad's trailing 12 month net margin is 7%, only slightly above the 6.9% level a year ago, while earnings per share over that trailing period are SEK 1.49 and have grown by an annual rate of 11.9% over five years according to the analysis.
• Supporters of the bullish narrative point to rising global demand for radiotherapy and a bigger base of recurring service contracts. The current 7% margin together with SEK 49.9 million of trailing net income is used to argue that profit quality is sound rather than one off.
  • The consensus view highlights an 86% year on year increase in service contract revenue and a 10% reduction in operating expenses, which fits with margins holding at about 7% even as revenue timing shifts between regions.
  • However, the same narrative acknowledges that EBIT was reported at SEK 8 million in a recent period after being higher before, so the modest margin level means bulls still need those efficiency gains and service revenues to continue if the case for structurally stronger profitability is to hold.

For readers who want to see how this earnings profile ties into a full bull case built around radiotherapy demand and service growth, it is worth checking the dedicated bullish narrative for C-Rad 🐂 C-Rad Bull Case.

P/E of 42.6x versus DCF fair value

• The stock trades on a trailing P/E of 42.6x against a current share price of SEK 37.50, while the data set out a DCF fair value of SEK 80.97 and an analyst price target of SEK 36.00. This implies a premium multiple on recent earnings alongside a modelled value that is more than double the market price and an analyst target that is slightly below it.
• Bears focus on that 42.6x P/E compared with peer and industry averages around 27x, and argue that such a premium leaves limited room for disappointment, even though the same data also show forecasts for about 28.1% annual earnings growth and 9.8% annual revenue growth.
  • The gap between the SEK 80.97 DCF fair value and the SEK 37.50 share price highlights how sensitive valuations can be to growth and margin assumptions, which is exactly the area skeptics question when they point to revenue volatility and dependence on large regional orders.
  • At the same time, the analyst price target of SEK 36.00 sitting close to the current price shows that not every valuation framework signals a wide upside, so readers need to weigh the higher P/E and the mixed valuation signals against their own view on the forecast growth path.

Skeptical investors who see the 42.6x P/E as demanding may want to walk through the detailed cautious narrative on C-Rad before forming a view 🐻 C-Rad Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for C-Rad on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After weighing the bullish and cautious narratives around C-Rad, the real question is how the current data lines up with your own expectations. If you want to act quickly and shape your own view, you can start by checking the detailed breakdown of the company's reward factors through the 2 key rewards.

See What Else Is Out There Beyond C-Rad

C-Rad combines a modest 7% net margin with a relatively high 42.6x P/E and still experiences swings linked to large, timing sensitive orders.

If that mix of valuation pressure and earnings volatility gives you pause, use the 291 resilient stocks with low risk scores to quickly zero in on stocks with more resilient risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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