Aroa Biosurgery Ltd (AU:ARX)
ASX:ARX
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Aroa Biosurgery Ltd
(Sydney:ARX)
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Rating:69Neutral
Price Target:
AU$0.75
▲(41.51% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by improving financial performance—rapid revenue growth, a shift to positive earnings, and newly positive operating/free cash flow—backed by a conservatively levered balance sheet. Technicals are supportive with the stock trading above key moving averages and positive momentum readings. The main offset is valuation, with a high P/E and no dividend yield provided.
Positive Factors
Sustained revenue growth & profitability inflection
Multi-year top-line expansion alongside a recent shift to positive EBIT and net income demonstrates the business has moved from scale-focused losses toward operating profitability. This structural revenue base and profitability inflection support longer-term investment in sales, clinical adoption, and margin expansion over 2–6 months and beyond.
Negative Factors
Profitability consistency risk
Although 2026 shows positive net income, multi-year prior losses and a still-modest net margin imply profits are not yet proven through a full cycle. Smaller margins leave earnings exposed to reimbursement shifts, input-cost increases, or slower surgical volumes, raising the risk of margin compression over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth & profitability inflection
Multi-year top-line expansion alongside a recent shift to positive EBIT and net income demonstrates the business has moved from scale-focused losses toward operating profitability. This structural revenue base and profitability inflection support longer-term investment in sales, clinical adoption, and margin expansion over 2–6 months and beyond.
Read all positive factors
Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$240.40M
Dividend YieldN/A
Average Volume (3M)302.12K
Price to Earnings (P/E)65.8
Beta (1Y)0.53
Revenue Growth19.23%
EPS GrowthN/A
CountryAU
Employees273
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding345,902,650
10 Day Avg. Volume330,836
30 Day Avg. Volume302,123
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)2.48
Price to Sales (P/S)2.23
P/FCF Ratio24.50
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 Upside103.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 makes money primarily by selling biologic surgical and wound-care products manufactured from its ovine extracellular matrix technology to healthcare providers via commercial partners and distributors. Revenue is generated through: (1) product...
Aroa Biosurgery Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 92.28M | 76.97M | 63.36M | 59.31M | 36.88M |
| Gross Profit | 79.63M | 65.99M | 54.10M | 50.06M | 28.17M |
| EBITDA | 9.03M | 2.65M | -6.78M | 683.92K | -3.75M |
| Net Income | 4.16M | -3.47M | -9.75M | -370.68K | -7.79M |
Balance Sheet | |||||
| Total Assets | 100.48M | 98.94M | 101.88M | 109.07M | 104.71M |
| Cash, Cash Equivalents and Short-Term Investments | 22.60M | 20.13M | 27.73M | 43.00M | 53.35M |
| Total Debt | 5.31M | 5.83M | 6.82M | 6.65M | 5.46M |
| Total Liabilities | 17.74M | 14.35M | 14.79M | 13.69M | 11.30M |
| Stockholders Equity | 82.74M | 84.59M | 87.08M | 95.38M | 93.40M |
Cash Flow | |||||
| Free Cash Flow | 8.39M | -5.69M | -10.00M | -10.66M | -15.39M |
| Operating Cash Flow | 9.37M | -2.33M | -6.76M | -3.53M | -10.86M |
| Investing Cash Flow | 3.80M | 273.54K | 9.31M | 6.79M | -32.41M |
| Financing Cash Flow | -1.55M | -1.34M | -948.41K | -471.78K | 34.98M |
Aroa Biosurgery Ltd Technical Analysis
Positive
0.53
Price Trends
0.59
Positive
0.63
Positive
0.66
Negative
Market Momentum
0.02
Negative
59.80
Neutral
83.12
Negative
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 0.53 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.59, and below the 200-day MA of 0.66, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$240.40M | 65.76 | 4.20% | ― | 19.23% | ― | |
67 Neutral | AU$842.83M | 80.55 | 11.87% | ― | 19.36% | 66.28% | |
66 Neutral | AU$6.57B | 19.33 | 17.76% | 1.64% | 2.04% | -6.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | AU$89.51M | -4.25 | -54.48% | ― | 17.24% | -20.00% | |
44 Neutral | AU$159.88M | -14.86 | -70.29% | ― | ― | -62.15% | |
41 Neutral | AU$2.36B | -12.70 | -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 Corrects Typo in FY26 Results Investor Presentation
May 26, 2026
Aroa Biosurgery has issued a correction to its FY26 Results Investor Presentation after identifying a typographical error in a reconciliation table describing profit or loss before income tax under NZ GAAP. The company stressed that the change is ...
Aroa Biosurgery Lifts FY26 Revenue 23% and Targets Further Growth With Higher FY27 Investment
May 26, 2026
Aroa Biosurgery reported FY26 total revenue of NZ$103.9 million, up 23% year on year and ahead of guidance on a constant currency basis, driven by strong 54% growth in Myriad product revenue to NZ$49.5 million and solid OviTex and OviTex PRS reven...
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...
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.