Aroa Biosurgery Ltd (AU:ARX)
ASX:ARX
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Aroa Biosurgery Ltd
(Sydney:ARX)
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Rating:58Neutral
Price Target:
AU$0.66
▲(23.58% Upside)
Action:ReiteratedDate:05/01/26
The score is primarily driven by improving but still mixed financial performance—strong revenue growth and a solid balance sheet are offset by ongoing net losses and negative free cash flow. Technicals are neutral-to-cautious with negative MACD and price below longer-term averages, while valuation remains pressured by the negative P/E and lack of dividend yield data.
Positive Factors
Revenue growth momentum
Aroa shows durable top-line expansion (≈16.9% revenue growth). Sustained revenue growth supports market penetration and recurring procedure-driven demand, underpinning longer-term scale benefits for commercial channels and product adoption across wound and soft-tissue markets.
Negative Factors
Persistent net losses reducing ROE
Negative net income has translated into negative ROE, signaling that current operations are not yet generating shareholder returns. Until net income turns sustainably positive, capital deployment and investor return prospects remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth momentum
Aroa shows durable top-line expansion (≈16.9% revenue growth). Sustained revenue growth supports market penetration and recurring procedure-driven demand, underpinning longer-term scale benefits for commercial channels and product adoption across wound and soft-tissue markets.
Read all positive factors
Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$221.38M
Dividend YieldN/A
Average Volume (3M)302.12K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth16.92%
EPS Growth76.47%
CountryAU
Employees273
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding345,902,650
10 Day Avg. Volume330,836
30 Day Avg. Volume302,123
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)1.73
Price to Sales (P/S)1.90
P/FCF Ratio-25.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.08Price Target Upside103.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$117.28M
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. ...
How the Company Makes Money
Aroa Biosurgery makes money primarily by selling its ECM-based medical device products to healthcare providers via medical device distribution channels. Revenue is generated from product sales used in clinical settings (e.g., hospitals, outpatient...
Aroa Biosurgery Ltd Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.36M | 76.97M | 63.36M | 59.31M | 36.88M | 20.51M |
| Gross Profit | 70.39M | 65.99M | 54.10M | 50.06M | 28.17M | 14.25M |
| EBITDA | 5.06M | 2.65M | -6.78M | 683.92K | -3.75M | -7.05M |
| Net Income | -1.66M | -3.47M | -9.75M | -370.68K | -7.79M | -17.63M |
Balance Sheet | ||||||
| Total Assets | 95.27M | 98.94M | 101.88M | 109.07M | 104.71M | 73.12M |
| Cash, Cash Equivalents and Short-Term Investments | 20.71M | 20.13M | 27.73M | 43.00M | 53.35M | 33.93M |
| Total Debt | 6.14M | 5.83M | 6.82M | 6.65M | 5.46M | 14.90M |
| Total Liabilities | 14.34M | 14.35M | 14.79M | 13.69M | 11.30M | 19.43M |
| Stockholders Equity | 80.93M | 84.59M | 87.08M | 95.38M | 93.40M | 53.69M |
Cash Flow | ||||||
| Free Cash Flow | 4.60M | -5.69M | -10.00M | -10.66M | -15.39M | -6.05M |
| Operating Cash Flow | 5.73M | -2.33M | -6.76M | -3.53M | -10.86M | -4.68M |
| Investing Cash Flow | -10.79M | 273.54K | 9.31M | 6.79M | -32.41M | -19.74M |
| Financing Cash Flow | -1.83M | -1.34M | -948.41K | -471.78K | 34.98M | 34.06M |
Aroa Biosurgery Ltd Technical Analysis
Negative
0.53
Price Trends
0.61
Negative
0.65
Negative
0.66
Negative
Market Momentum
-0.03
Positive
30.98
Neutral
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARX, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.61, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARX.
Aroa Biosurgery Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$6.53B | 26.40 | 17.76% | 1.64% | 2.04% | -6.63% | |
62 Neutral | AU$697.75M | 70,799.02 | 11.87% | ― | 19.36% | 66.28% | |
58 Neutral | AU$221.38M | -47.06 | -2.00% | ― | 16.92% | 76.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | AU$106.53M | -2.83 | -54.48% | ― | 17.24% | -20.00% | |
44 Neutral | AU$177.28M | -10.00 | -70.29% | ― | ― | -62.15% | |
41 Neutral | AU$1.90B | -3.16 | -890.76% | ― | -0.80% | -249.48% |
* Healthcare Sector Average
AU:ARX
Aroa Biosurgery Ltd
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Aroa Biosurgery Ltd Corporate Events
Aroa Biosurgery Beats FY26 Guidance on Strong Myriad Sales and Margin Lift
Apr 29, 2026
Aroa Biosurgery reported preliminary unaudited FY26 results showing total revenue of about NZ$104 million on an actual basis, or NZ$101 million in constant currency, surpassing its guidance range and representing 21% growth on the prior year, driv...
Aroa Biosurgery Seeks ASX Quotation for New Share Issue
Apr 10, 2026
Aroa Biosurgery Ltd has applied to the ASX for quotation of 426,457 new fully paid ordinary shares, issued on 9 April 2026 following the exercise or conversion of existing options or other convertible securities. The additional shares will be list...
Aroa Biosurgery Flags Lapse and Expiry of Equity Incentives, Trimming Potential Dilution
Apr 9, 2026
Aroa Biosurgery has notified the market of the cessation of several classes of equity-based incentives, including restricted stock units, options and performance rights. The instruments, covering a combined 336,541 potential securities, lapsed or ...
Aroa Biosurgery’s Symphony Trial Hits Key Endpoint in Diabetic Foot Ulcers
Mar 29, 2026
Aroa Biosurgery has completed a multi-centre randomised controlled trial of its Symphony skin substitute in patients with chronic Wagner grade 1 and 2 diabetic foot ulcers, comparing the product to standard care over a 12-week period. Preliminary ...
Aroa Biosurgery to Release Small Tranche of Escrowed Director Shares
Mar 24, 2026
Aroa Biosurgery Limited has announced that 70,055 fully paid ordinary shares will be released from voluntary escrow on 31 March 2026, following a similar 70,055-share release on 31 March 2025. Together these tranches represent just 0.04% of the co...
Aroa Biosurgery Seeks ASX Quotation for New Shares Issued Under Employee Incentive Scheme
Feb 4, 2026
Aroa Biosurgery Limited has applied for quotation on the ASX of 442,961 new fully paid ordinary shares issued on 29 January 2026 under an employee incentive scheme. The additional securities, to trade under the company’s existing ARX ticker,...
Aroa Biosurgery Issues Investor-Focused February 2026 Business Update
Feb 2, 2026
Aroa Biosurgery has issued a February 2026 business update presentation aimed at investors, outlining general company information and educational material on its regenerative wound care technologies. The document emphasises that it is not a prospe...
Aroa Biosurgery Poised to Gain From US Reimbursement Shift as New Data Backs Myriad
Feb 2, 2026
Aroa Biosurgery says its Symphony wound-care product is well placed to benefit from new US Medicare rules that set a single outpatient reimbursement rate of US$127.14 per square centimetre for skin substitutes, a move the company expects will sque...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.