CellaVision AB (publ) (CEVI.ST) | Investment Case

1. Company Snapshot

1.a. Company Description

CellaVision AB (publ) develops and sells digital solutions for blood and body fluids analysis in health care services sector in Sweden, Europe, the Middle East, Africa, the Americas, and the Asia Pacific.The company provides CellaVision DM1200 and CellaVision DM9600, which automatically capture digital images of cells from blood smears and body fluid preparations; and CellaVision DC-1, an analyzer.It also offers CellaVision Peripheral Blood Application that enables laboratories to automate, standardize, and simplify morphological examination of peripheral blood smears; CellaVision Advanced RBC Application, which enables to perform comprehensive examination of red blood cell morphology; CellaVision Body Fluid Application that enables laboratories to automate, standardize, and simplify morphological examination of body fluid preparations; and CellaVision Remote Review Software, which removes restrictive geographical constraints from the smear review process.

In addition, the company provides CellaVision Server Software that creates a single streamlined workflow within one or multiple testing sites; CellaVision Dashboard, a tool designed to give an at-a-glance view of CellaVision analyzer and reviewer metrics; CellaVision Proficiency Software, a cloud-based software designed to help laboratory managers assess, monitor, and promote staff competency in the area of cell morphology; CellaVision CellAtlas, which combines a series of mini lectures with an extensive cell image library; and CellaVision VET that offers digital solutions for medical microscopy in the field of hematology.It sells its products to hospital and commercial laboratories.CellaVision AB (publ) was incorporated in 1994 and is headquartered in Lund, Sweden.

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1.b. Last Insights on CEVI

CellaVision AB's recent performance was hindered by sales challenges in the Americas, which offset the company's strong regional performance in APAC. The company's strategic alliances and record APAC sales in Q4 2024 were not enough to compensate for the decline in sales in the Americas. Furthermore, increased operating expenses have added to the company's woes. The European market's mixed performance, with the STOXX Europe 600 Index edging up by 0.56%, has also had a limited impact on the company's short-term prospects.

1.c. Company Highlights

Last Price	156.2
Change Percentage	-0.64%
Open	157.8
Previous Close	157.2
Market Cap ( Millions)	3726
Volume	36897
Year High	232.5
Year Low	147.8
M A 50	171.78
M A 200	175.73

FCF Yield	1.65%
Dividend Yield	1.60%
ROE	18.19%
Debt / Equity	3.20%
Net Debt / EBIDTA	-57.14%
Price To Book	4.38
Price Earnings Ratio	24.61
Price To FCF	60.55
Price To sales	4.98
EV / EBITDA	15.63

2. CellaVision's Q3 2025: A Softer Quarter with Mixed Regional Performance

CellaVision reported a revenue decline of 1.7% to SEK 176 million in Q3 2025, with organic growth increasing by 2.6% compared to the same period last year. The company's EBITDA margin stood at 28%, a 1% increase from the previous year, with EBITDA reaching SEK 50 million. Earnings per share (EPS) came in at SEK 1.31, slightly below estimates of SEK 1.36. The revenue decline was largely attributed to currency effects, while regional performance varied, with the Americas reporting a 4% organic growth, EMEA a 1% growth, and APAC a 10% growth.

Publication Date: Nov -12

                                    📋 Highlights
                                    Net Sales & Organic Growth::
                                                Net sales decreased by 1.7% to SEK 176 million, while organic growth rose 2.6% YoY, driven by regional performance variations.
Regional Performance::
                                                Americas saw 4% organic growth (SEK 68M), EMEA grew 1% (SEK 96M), and APAC surged 10% (SEK 13M) due to inventory shipping.
EBITDA Margin Improvement::
                                                EBITDA increased to SEK 50 million with a 28% margin, up 1 percentage point YoY, reflecting cost management.
Strategic R&D & Innovation::
                                                Annual R&D capex held at SEK 70 million; new software upgrades included in instrument purchases, boosting workflow efficiency.
Reagent Market Expansion::
                                                Methanol-free stain development targets U.S. reagent market entry by mid-2026, with significant strategic value despite limited 2026 revenue impact.

                                

Regional Highlights

The Americas region drove growth with a 4% organic increase, thanks to good traction on large instrument platforms, resulting in SEK 68 million in net sales. EMEA reported SEK 96 million in net sales, with a 1% organic growth, despite a tough comparison due to inventory buildup in the previous year. APAC had a soft quarter, with SEK 13 million in net sales, but still managed a 10% growth, driven by inventory shipping and manufacturing out of China. CEO Simon Østergaard highlighted that the company's manufacturing operations in China, facilitated by Sysmex's fixed site, will help protect CellaVision's market share and drive growth through differentiation.

Strategic Progress and R&D

CellaVision made significant progress in its strategic direction, including the completion of a clinical trial and submission of documentation for CE marking for its bone marrow application. The company also launched an upgraded software for its platforms, which will be part of the package when purchasing the blood line instrument, without an additional fee for the end user. R&D capital expenses remained at a reasonable level of SEK 70 million per year, with potential changes in capitalization as new projects mature.

Valuation and Outlook

Analysts estimate next year's revenue growth at 11.4%. With a current P/E Ratio of 25.59 and EV/EBITDA of 16.21, the market is pricing in a certain level of growth. The company's ROE stands at 18.64%, indicating a strong return on equity. As CellaVision continues to invest in innovation and differentiation, its strategic initiatives, such as the methanol-free stain, are expected to drive future growth, with the reagent market expected to materialize in mid-2026.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.31%)

6. Segments

Instruments

Expected Growth: 12%

CellaVision AB's 12% growth is driven by increasing adoption of digital pathology solutions, expansion into new markets, and growing demand for automated blood cell analysis. Strong sales of its flagship product, DM1200, and increasing recurring revenue from software and services also contribute to the growth. Additionally, strategic partnerships and investments in R&D further support the company's expansion.

Software and Other

Expected Growth: 14%

CellaVision AB's 14% growth in Software and Other is driven by increasing demand for digital pathology solutions, expansion into new markets, and growing adoption of artificial intelligence in healthcare. Additionally, the company's strategic partnerships and investments in research and development have contributed to the growth.

Reagents

Expected Growth: 11%

CellaVision AB's 11% growth in Reagents is driven by increasing adoption of digital morphology in hematology, rising demand for automated blood cell analysis, and expansion into new geographies. Additionally, the company's focus on product innovation, strategic partnerships, and growing customer base contribute to its growth momentum.

7. Detailed Products

CellaVision DM96

A digital microscope system for remote blood cell morphology analysis

CellaVision DC-1

A digital cell morphology system for automated blood cell differential counting

CellaVision DM1200

A digital microscope system for remote blood cell morphology analysis with advanced image analysis

CellaVision Remote Review

A software solution for remote review and validation of blood cell morphology

CellaVision Image Analysis

A software solution for advanced image analysis of blood cells

8. CellaVision AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CellaVision AB (publ) is moderate due to the presence of alternative solutions in the market, but the company's strong brand recognition and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for CellaVision AB (publ) as the company operates in a niche market with limited competition, giving customers limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for CellaVision AB (publ) as the company relies on a few key suppliers for critical components, but has some flexibility to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low for CellaVision AB (publ) due to the high barriers to entry in the medical technology industry, including significant research and development costs and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for CellaVision AB (publ) as the company operates in a competitive market with several established players, leading to aggressive marketing and pricing strategies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.28%
Debt Cost	6.35%
Equity Weight	91.72%
Equity Cost	9.36%
WACC	9.11%
Leverage	9.03%

11. Quality Control: CellaVision AB (publ) passed 9 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

InMode

A-Score: 4.9/10

Value: 6.6

Growth: 7.0

Quality: 9.4

Yield: 0.0

Momentum: 3.5

Volatility: 2.7

1-Year Total Return ->

ChemoMetec

A-Score: 4.8/10

Value: 0.0

Growth: 7.8

Quality: 9.4

Yield: 0.6

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

Eckert & Ziegler

A-Score: 4.7/10

Value: 2.0

Growth: 7.1

Quality: 7.5

Yield: 1.2

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

CellaVision

A-Score: 3.5/10

Value: 1.3

Growth: 6.7

Quality: 8.0

Yield: 1.9

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

Xvivo Perfusion

A-Score: 3.3/10

Value: 0.8

Growth: 9.8

Quality: 7.5

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

Guerbet

A-Score: 2.7/10

Value: 7.8

Growth: 2.6

Quality: 2.0

Yield: 2.5

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

15.88%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.11%

CellaVision AB (publ) - SE0000683484

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CEVI

1.c. Company Highlights

Better Quality

Expensive

Higher Growth

Earnings Miss

Revenues Miss

Strong Momentum

Stable Momentum

Earnings Beats

Revenues Beats

Higher Yield

Weak Momentum

2. CellaVision's Q3 2025: A Softer Quarter with Mixed Regional Performance

Regional Highlights

Strategic Progress and R&D

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.31%)

6. Segments

Instruments

Expected Growth: 12%

Software and Other

Expected Growth: 14%

Reagents

Expected Growth: 11%

7. Detailed Products

CellaVision DM96

CellaVision DC-1

CellaVision DM1200

CellaVision Remote Review

CellaVision Image Analysis

8. CellaVision AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: CellaVision AB (publ) passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

156.2$

Current Price

156.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA