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1. Company Snapshot

1.a. Company Description

Surgical Science Sweden AB (publ) develops and markets virtual reality (VR) simulators for evidence-based laparoscopic and endoscopic training.It offers LapSim training system comprising LapSim ST develops to train surgical technologists and surgical assistants; and LapSim essence, a portable and ready-to-use VR simulator.The company also provides EndoSim system, an endoscopy simulator that delivers medical simulation training; TeamSim, a dynamic platform for inter-professional education development taking surgery simulation into the real world teamwork; Simball Box, which offers feedback on velocity with tutorial task videos showing a preferred approach; simbionix simulators; and robotic surgery simulators.


Surgical Science AB was founded in 1999 and is headquartered in Gothenburg, Sweden.

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1.b. Last Insights on SUS

Surgical Science Sweden AB (publ) faces challenges amidst mixed European market performance. Despite dovish signals from the US Federal Reserve, which typically boosts growth stocks, the company's recent momentum is hindered. Insiders' confidence, often a positive indicator, is overshadowed by prevailing market conditions. With European growth companies under scrutiny, Surgical Science's ability to navigate these headwinds will be crucial. Recent earnings releases have not provided a significant boost, and the company's strategic direction is being closely watched by investors.

1.c. Company Highlights

2. Surgical Science's Q3 2025 Earnings: A Mixed Bag

Surgical Science reported total sales of SEK 264 million, a 14% increase from the same quarter last year and 19% adjusted for currency effects, reaching an all-time high. Adjusted EBIT was SEK 33 million, with a negative impact from restructuring costs of SEK 2 million. The earnings per share (EPS) came in at 0.4, significantly lower than analyst estimates of 0.987. Gross margin was 65%, down from 69% last year due to a lower share of license revenue and currency effects.

Publication Date: Nov -30

📋 Highlights
  • Total Sales Growth:: Reached SEK 264 million, up 14% YoY and 19% adjusted for currency effects.
  • Industry OEM Performance:: Sales grew 20% YoY, with development revenue surging 131%.
  • Intuitive’s Impact:: Customer reported 19% procedure growth and 13% installed base expansion via da Vinci 5.
  • U.S. Market Challenges:: Sales declined due to extended hospital cycles and a 9% drop in simulator sales YoY.
  • Adjusted EBIT Margin:: 13% for the quarter, down from 22% YoY, affected by restructuring costs and tax increases.

Segment Performance

The educational products business unit stabilized during the quarter, with an 8% growth compared to the same quarter in 2024 and 26% compared to the previous quarter. The industry OEM business area performed well, with sales increasing by 20% and development revenue increasing by 131% compared to the same quarter in 2024. However, simulator sales declined by 9% year-on-year, primarily due to challenging comparables and negative currency effects.

Challenges and Opportunities

The company faced challenges in the U.S. market, with sales decreasing for comparable units due to extended sales cycles in a tougher budgetary climate for hospitals. The replacement of older da Vinci systems with the new DV5 platform also affected simulation sales and subscription renewals. As Tom Englund, CEO, noted, the company expects the lumpiness in sales to decrease over time as more players enter the market.

Valuation and Outlook

With a P/E Ratio of 24.82 and an EV/EBITDA of 13.45, the market seems to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 7.4%. Given the current valuation multiples and the company's efforts to expand into new segments and improve its product portfolio, it remains to be seen whether Surgical Science can meet these expectations. The company's ROE of 1.56% and ROIC of 1.1% indicate room for improvement in terms of profitability.

Strategic Review and Future Plans

The company is in the final stages of its strategic review, which aims to drive continued growth in traditional and new adjacent segments. With a large potential deal in the medical device simulation space and the launch of new products like RobotiX Express, Surgical Science is well-positioned to capitalize on emerging opportunities. However, the success of these initiatives will be crucial in determining the company's ability to meet market expectations.

3. NewsRoom

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Surgical Science Sweden (OM:SUS): Assessing Valuation After Intuitive Withdraws Agreement and 2026 Targets Are Pulled

Nov -30

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Can Surgical Science Sweden's (OM:SUS) Rising Sales Offset Margin Pressure in Its Evolving Strategy?

Nov -27

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European Growth Companies With High Insider Ownership

Nov -20

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Looking at the Narrative for Surgical Science Sweden After Analyst Price Target Revisions

Nov -15

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Surgical Science Sweden AB (SUSRF) Q3 2025 Earnings Call Highlights: Record Sales Amidst ...

Nov -13

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European Growth Stocks With Significant Insider Stakes

Oct -22

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European Growth Companies With Insider Ownership Up To 35%

Sep -23

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European Growth Stocks Insiders Are Confident In

Aug -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.69%)

6. Segments

Educational Products

Expected Growth: 10.55%

Surgical Science Sweden AB's 10.55% growth in Educational Products is driven by increasing demand for simulation-based training, expansion into new markets, and strategic partnerships with medical institutions. Additionally, the company's focus on innovative product development, such as virtual reality and artificial intelligence-based solutions, is attracting new customers and increasing revenue.

Industry / OEM

Expected Growth: 10.88%

Surgical Science Sweden AB's 10.88% growth is driven by increasing demand for simulation-based training in the healthcare industry, expansion into new markets, and strategic partnerships with OEMs. The company's innovative products and services, such as laparoscopic and endoscopic simulators, are also contributing to its growth.

7. Detailed Products

Simbionix LAP Mentor

A laparoscopic simulator designed to provide a realistic and immersive training experience for surgeons, allowing them to practice and improve their laparoscopic skills in a safe and controlled environment.

Simbionix GI Mentor

An endoscopy simulator that mimics real-life procedures, enabling healthcare professionals to practice and improve their endoscopic skills in a realistic and controlled environment.

Simbionix Uro Mentor

A urology simulator that provides a realistic and immersive training experience for urologists, allowing them to practice and improve their skills in procedures such as TURP and ureteroscopy.

Simbionix Robotic Surgery Simulator

A robotic surgery simulator that provides a realistic and immersive training experience for surgeons, allowing them to practice and improve their robotic surgery skills in a safe and controlled environment.

Simbionix Endovascular Simulator

An endovascular simulator that provides a realistic and immersive training experience for interventional radiologists and cardiologists, allowing them to practice and improve their endovascular skills in a safe and controlled environment.

8. Surgical Science Sweden AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for Porter Forces of Surgical Science Sweden AB (publ) as there are some alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers is low for Porter Forces of Surgical Science Sweden AB (publ) as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Porter Forces of Surgical Science Sweden AB (publ) as the company relies on a few key suppliers, but they do not have significant bargaining power.

Threat Of New Entrants

The threat of new entrants is high for Porter Forces of Surgical Science Sweden AB (publ) as the market is attractive and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high for Porter Forces of Surgical Science Sweden AB (publ) as the market is highly competitive and there are many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.21%
Debt Cost 3.95%
Equity Weight 98.79%
Equity Cost 8.54%
WACC 8.48%
Leverage 1.23%

11. Quality Control: Surgical Science Sweden AB (publ) passed 7 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

Stock-Card
Nexus

A-Score: 5.6/10

Value: 2.0

Growth: 7.2

Quality: 7.9

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
CompuGroup Medical

A-Score: 4.7/10

Value: 4.6

Growth: 4.2

Quality: 4.1

Yield: 0.6

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Equasens

A-Score: 4.2/10

Value: 4.6

Growth: 4.9

Quality: 7.2

Yield: 4.4

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Cegedim

A-Score: 4.0/10

Value: 10.0

Growth: 3.7

Quality: 2.3

Yield: 0.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
SOPHiA GENETICS

A-Score: 3.8/10

Value: 6.8

Growth: 4.6

Quality: 3.7

Yield: 0.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Surgical Science Sweden

A-Score: 2.9/10

Value: 1.9

Growth: 7.7

Quality: 6.1

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.52$

Current Price

33.52$

Potential

-0.00%

Expected Cash-Flows