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Aroa Biosurgery Ltd
(Sydney:ARX)
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Rating:69Neutral
Price Target:
AU$0.61
▲(9.46% 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
Revenue Growth
Multi-year revenue growth from ~A$20.5m to ~A$92.3m demonstrates sustained commercial traction for Aroa's ovine ECM platform. A larger, growing revenue base improves scale economics, supports continued commercial investment and product adoption across wound-care and surgical channels.
Negative Factors
Modest Net Margin
Despite a profitability inflection, net margin near 4.5% is modest given high gross margins; modest net returns limit internal funding for expansion and signal sensitivity to SG&A or pricing pressure. Sustainable margin expansion is required to prove durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Multi-year revenue growth from ~A$20.5m to ~A$92.3m demonstrates sustained commercial traction for Aroa's ovine ECM platform. A larger, growing revenue base improves scale economics, supports continued commercial investment and product adoption across wound-care and surgical channels.
Read all positive factors
Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$197.16M
Dividend YieldN/A
Average Volume (3M)302.12K
Price to Earnings (P/E)31.3
Beta (1Y)0.61
Revenue Growth19.23%
EPS GrowthN/A
CountryAU
Employees273
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.02
Shares Outstanding345,902,650
10 Day Avg. Volume330,836
30 Day Avg. Volume302,123
Financial Highlights & Ratios
PEG Ratio-0.23
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$0.94Price Target Upside67.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$120.57M
Aroa Biosurgery Ltd Business Overview & Revenue Model
Company Description
Aroa Biosurgery Limited operates as a regenerative medicine company dedicated to the development, production, and global distribution of medical solutions for wound and tissue repair. The firm innovatively utilizes extracellular matrix (ECM) techn...
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
Negative
0.56
Price Trends
0.60
Negative
0.59
Negative
0.64
Negative
Market Momentum
-0.01
Positive
45.64
Neutral
21.21
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 0.56 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.60, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$7.84B | 22.72 | 17.76% | 3.80% | 2.04% | -6.63% | |
69 Neutral | AU$197.16M | 31.32 | 7.55% | ― | 19.23% | ― | |
61 Neutral | AU$597.58M | 60.49 | 11.87% | ― | 19.36% | 66.28% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | AU$35.83M | -1.22 | -372.27% | ― | 68.30% | 40.74% | |
46 Neutral | AU$16.48M | -0.38 | -165.13% | ― | 23.30% | -14.29% | |
42 Neutral | AU$185.16M | -2.19 | -179.23% | ― | ― | 35.64% |
* Healthcare Sector Average
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Aroa Biosurgery Ltd Corporate Events
Aroa Biosurgery Issues 2.9 Million Restricted Stock Units Under Employee Incentive Plan
Jul 28, 2026
Aroa Biosurgery Limited has notified the market of a new issue of unquoted equity securities under its employee incentive scheme. The company is issuing 2,900,172 restricted stock units, recorded under ASX code ARXAAJ, with an issue date of July 2...
Aroa Biosurgery strengthens US commercial leadership to drive global growth
Jul 28, 2026
Aroa Biosurgery has expanded its US-based commercial leadership by appointing industry veteran Michael Lynskey as Chief Commercial Officer and adding him to the executive leadership team. Lynskey, who brings over two decades of global advanced wou...
Aroa Biosurgery Sets Fully Virtual 2026 AGM with Governance and CEO Incentive Votes
Jul 24, 2026
Aroa Biosurgery Limited has scheduled its 2026 Annual General Meeting for 19 August 2026, to be held entirely as a virtual event accessible to shareholders and proxies online. The company has distributed the notice of meeting and proxy forms and i...
Aroa Biosurgery Cuts Potential Dilution as Options and Rights Lapse
Jul 14, 2026
Aroa Biosurgery has notified the market of the cessation of several classes of equity-linked securities, including options and performance rights, under ASX rules. The company reported that more than 1.5 million options expired unexercised on 28 J...
Aroa Biosurgery Welcomes CMS Plan to Keep Outpatient Skin Substitute Rates
Jul 14, 2026
The United States Centers for Medicare Medicaid Services has proposed keeping the current calendar year 2026 payment framework for outpatient skin substitute products in 2027, including a single rate of US$127.14 per square centimetre. This move ...
Aroa Biosurgery CFO James Agnew Resigns After 13 Years of Service
Jul 9, 2026
Aroa Biosurgery announced that Chief Financial Officer and Joint Company Secretary James Agnew has resigned to pursue another opportunity, and will remain with the company until the end of November 2026 to ensure an orderly transition. The board h...
Aroa Biosurgery Lodges Appendix 4G, Reaffirming ASX Governance Compliance
Jun 30, 2026
Aroa Biosurgery Limited is a medical technology company listed on the ASX that focuses on biosurgical products, operating within the healthcare and life sciences industry. The company targets investors through its dedicated online investor relatio...
Aroa Biosurgery Sets Out 2026 Performance and Key Dates in Annual Report
Jun 30, 2026
Aroa Biosurgery has released its annual report for the year ended 30 June 2026, outlining financial and operational performance, governance, and sustainability initiatives. The report confirms key corporate dates for the upcoming financial year, i...
Aroa Biosurgery director trims indirect shareholding in on-market sale
Jun 29, 2026
Aroa Biosurgery has disclosed a change in the indirect shareholding of director John Diddams, following an on-market sale of 200,000 fully paid ordinary shares. The sale, executed on 26 June 2026 for total consideration of about A$125,789, reduced...
Aroa Biosurgery Sets AGM Date as Long-Serving Director Plans Retirement
Jun 23, 2026
Aroa Biosurgery Ltd has scheduled its next Annual General Meeting for 19 August 2026, at which an election of directors will be held and full details will be provided in the formal meeting notice. The company has also set 1 July 2026 as the deadli...
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...
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.