Aroa Biosurgery Ltd (ARX) AI Stock Analysis

• Market Cap: AU$179.35M
• Dividend Yield: N/A
• Average Volume (3M): 304.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 15.90%
• EPS Growth: 8.52%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): >-0.01
• Shares Outstanding: 344,900,270
• 10 Day Avg. Volume: 489,499
• 30 Day Avg. Volume: 304,125
• PEG Ratio: -0.59
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.82
• Price Target Upside: 57.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: ―

Aroa Biosurgery Ltd's overall score is influenced by strong revenue growth and robust gross profit margins, suggesting potential for future profitability. However, net losses, negative free cash flow, and weak technical indicators weigh down the score. The lack of a positive P/E ratio and dividend yield further detracts from the stock's attractiveness.

Aroa Biosurgery Ltd Business Overview & Revenue Model

Company Description

Aroa Biosurgery Limited, a regenerative medicine company, engages in the developing, manufacturing, and distributing medical devices for wound and tissue repair using extracellular matrix (ECM) technology in the United States and internationally. The company's products include Endoform Natural and Endoform Antimicrobia Restorative Bioscaffold for treating acute and chronic wounds; Myriad Matrix, an engineered ECM for soft tissue repair, reinforcement, and complex wounds; Myriad Morcells, a morcellized (powdered) format of Myriad Matrix for soft tissue repair and complex wounds; and Reinforced Bioscaffolds, a surgical product for use in ventral hernia repair and abdominal wall reconstruction. Aroa Biosurgery Limited was incorporated in 2007 and is headquartered in Auckland, New Zealand.

How the Company Makes Money

Aroa Biosurgery generates revenue primarily through the sale of its medical devices and products. The company's revenue streams include direct sales to healthcare providers and partnerships with distributors to reach a broader market. Aroa's products are used in hospitals, clinics, and surgical centers for procedures involving wound care and tissue reconstruction. By maintaining strong relationships with medical professionals and institutions, Aroa can ensure steady demand for its innovative products. Additionally, the company may engage in licensing agreements or collaborations with other medical device companies to expand its technology's reach and application, further contributing to its earnings.

Aroa Biosurgery Ltd Financial Statement Overview

Summary

Aroa Biosurgery Ltd presents strong revenue growth and robust gross profit margins, indicating effective cost management. However, challenges with net losses and negative free cash flow impact financial flexibility. Despite these issues, the company benefits from a strong equity base and low leverage, suggesting financial stability.

Income Statement

Aroa Biosurgery Ltd has demonstrated strong revenue growth, with a 6.82% increase from 2023 to 2024 and a substantial rise from 2022. The Gross Profit Margin is robust at 85.37% in 2024, indicating effective cost management. However, the company is facing profitability challenges, as indicated by a negative Net Profit Margin of -15.38% and an EBIT Margin of -15.45%, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a healthy equity position with an Equity Ratio of 85.49% for 2024, suggesting financial stability and low reliance on debt. The Debt-to-Equity Ratio is low at 0.08, indicating a conservative capital structure. However, the Return on Equity is negative due to net losses, which highlights profitability challenges.

Cash Flow

Cash flow analysis reveals a negative Free Cash Flow for 2024, indicating cash outflows exceeding inflows, which could strain liquidity. The Operating Cash Flow to Net Income Ratio is unavailable due to negative figures, highlighting cash generation issues. However, the company maintains a strong cash position, providing some cushion against financial fluctuations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
70.17M	63.36M	59.31M	36.88M	20.51M	23.83M
	Gross Profit
60.79M	54.10M	50.06M	28.17M	14.25M	17.50M
	EBIT
-9.10M	-9.79M	―	―	―	-2.83M
	EBITDA
-5.98M	-7.36M	3.50M	-3.75M	-14.56M	-219.49K
	Net Income Common Stockholders
-7.00M	-9.75M	―	―	―	-5.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.03M	27.73M	43.00M	53.35M	33.93M	42.42M
	Total Assets
102.98M	101.88M	109.07M	104.71M	73.12M	82.54M
	Total Debt
5.96M	6.82M	6.65M	5.46M	14.90M	14.42M
	Net Debt
-4.72M	-3.75M	-2.28M	-268.61K	-17.58M	-27.05M
	Total Liabilities
14.95M	14.79M	13.69M	11.30M	19.43M	19.68M
	Stockholders Equity
88.04M	87.08M	95.38M	93.40M	53.69M	62.86M
Cash Flow		Free Cash Flow
-5.89M	-13.31M	―	―	―	-199.54K
	Operating Cash Flow
-4.46M	-6.84M	―	-10.86M	-4.68M	1.58M
	Investing Cash Flow
18.60M	9.31M	6.79M	―	―	-1.78M
	Financing Cash Flow
-1.10M	-958.48K	―	34.98M	34.06M	-364.87K

Aroa Biosurgery Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARX, the sentiment is Positive. The current price of 0.52 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.44, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARX.

Aroa Biosurgery Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARX	54 Neutral	AU$179.35M	―	-4.06%	―	15.90%	8.52%
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
CHEOF		$11.44B	46.62	20.61%	1.61%	―	―
CMXHF		$76.29B	26.67	15.38%	1.85%	―	―
FSPKF		$12.92B	54.13	21.01%	1.45%	―	―
NNCSF		$850.23M	72.50	9.23%	―	―	―
RMD	79 Outperform	AU$56.78B	27.93	25.23%	0.85%	10.54%	38.69%

Aroa Biosurgery Ltd Corporate Events

Australian Ethical Investment Becomes Substantial Holder in Aroa Biosurgery

Aroa Biosurgery Ltd has announced that Australian Ethical Investment Limited has become a substantial holder in the company, with a 5.01% voting power through 17,288,432 ordinary shares. This development signifies a notable investment in Aroa Biosurgery, potentially enhancing its market position and signaling confidence in its growth prospects, which may positively impact stakeholders and the company’s strategic initiatives.

Aroa Biosurgery Ltd: Advancing Regenerative Healing in Q4 FY’25

Aroa Biosurgery Ltd released its quarterly report for Q4 FY’25, highlighting its ongoing commitment to advancing regenerative healing technologies. The report, intended for educational purposes, emphasizes the company’s strategic focus on innovation and market expansion. While it does not serve as an investment prospectus, it underscores Aroa’s dedication to enhancing its market position and delivering value to stakeholders through its specialized medical products.

Aroa Biosurgery Reports Strong Financial Performance and Strategic Growth Initiatives

Aroa Biosurgery Limited reported its second consecutive quarter of positive cash flows from operations, with a cash flow of NZ$1.1 million and a strong cash balance of NZ$22.0 million. The company maintained its full-year FY25 revenue guidance, reflecting a 17-22% increase from FY24, and achieved record sales for its Myriad product line in March 2025. Aroa’s strategic initiatives include appointing a US-based Marketing Director to drive market growth and securing unique billing codes for its products to streamline reimbursement processes. The company’s operational progress and financial stability position it well for continued growth and investment in its product lines.

Aroa Biosurgery to Host Webinar on Quarterly Results

Aroa Biosurgery Limited announced it will host a webinar to discuss its March Quarterly Results, with CEO Brian Ward and CFO James Agnew leading the session. The webinar, scheduled for April 29, 2025, aims to engage investors and interested parties, offering them an opportunity to submit questions and gain insights into the company’s financial performance. This initiative underscores Aroa’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations positively.

Aroa Biosurgery Announces Cessation of Securities

Aroa Biosurgery Ltd has announced the cessation of several securities due to unmet conditions, impacting a total of 998,371 options across various expiration dates. This development may influence the company’s financial strategies and stakeholder interests, as these securities lapses reflect on the company’s operational adjustments and market positioning.