Arcoma AB (ARCOMA) AI Stock Analysis

• Market Cap: kr118.76M
• Dividend Yield: N/A
• Average Volume (3M): 22.73K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.29
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 31
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.10
• Shares Outstanding: 14,308,510
• 10 Day Avg. Volume: 31,356
• 30 Day Avg. Volume: 22,732
• PEG Ratio: -0.35
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 5.68
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: kr8.50 ▲(18.06% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by improved financial strength—zero debt and strong recent cash generation—partly offset by weakening top-line momentum and notable 2025 gross profit compression. Technicals are neutral-to-mixed and valuation (P/E 21.44 with no dividend) does not provide a clear margin of safety.

Positive Factors

Debt-free balance sheet

Arcoma's reduction of total debt to effectively zero materially improves financial flexibility and reduces solvency and interest-rate risk. Over 2–6 months this supports funding for product support, modest capex or targeted M&A without reliance on external financing, improving resilience.

Strong cash generation

Consistent positive operating cash flow and a pronounced free cash flow pickup in 2025 indicate improved cash conversion and internal funding capacity. This durable cash generation can underwrite R&D, service operations and working capital needs while lowering refinancing risk over the medium term.

Profitability turnaround

Transitioning from losses to sustained positive EBIT and net income shows structural operational improvement. Improved profitability supports reinvestment in product development and service delivery, and, if maintained, can drive stronger returns and stability in free cash flow over the coming months.

Negative Factors

Weakening revenue trend

Falling revenue in consecutive years undermines long-term durability: it pressures margins, limits scale benefits, and may signal weakening demand or competitive pressure in the imaging market. Sustained top-line declines would erode recent cash improvements without a clear recovery plan.

2025 gross profit compression

A sharp gross profit decline in 2025 despite similar revenue points to cost or pricing pressure rather than volume. That structural margin erosion threatens long-term profitability and free cash flow sustainability unless cost base or pricing power is restored, increasing execution risk.

Small scale and volatile returns

With only ~31 employees and historically volatile ROE, Arcoma's small scale magnifies execution and revenue-concentration risks. Variable returns indicate earnings sensitivity to a few contracts or cost swings, making durable margin and growth consistency harder to rely on over the medium term.

Arcoma AB Business Overview & Revenue Model

Company Description

Arcoma AB develops, produces, and provides radiology solutions worldwide. It offers digital x-ray and radiography systems for radiographic applications, as well as for use in general, eneral, muscle/skeleton, thoratic, pediatric, and trauma/resus clinics. The company sells its products through OEM partners. Arcoma AB was founded in 1990 and is based in Växjö, Sweden.

How the Company Makes Money

Arcoma AB Financial Statement Overview

Summary

Financial profile has improved meaningfully: profitability is solidly positive in 2023–2025, debt has been reduced to effectively zero, and operating/free cash flow are strongly positive (with a large jump in 2025). Offsetting this, revenue has declined in 2024–2025 and 2025 gross profit compression is a key durability risk.

Income Statement

Profitability has improved materially versus earlier years, with EBIT and net income solidly positive in 2023–2025 after losses in 2021. However, growth has been inconsistent: revenue surged in 2023 but declined in 2024 and fell further in 2025. Margins were strong in 2024, but the sharp drop in gross profit in 2025 (despite similar revenue) suggests either one-off items or cost pressure, which is a key watch item.

Balance Sheet

The balance sheet looks conservative and strengthening. Total debt has been reduced from meaningful levels in 2022 to effectively zero in 2024–2025, while equity has grown and assets remain well supported by equity. The main weakness is that returns on equity have been volatile historically (negative in 2021, much better in 2024), indicating profitability consistency is still developing.

Cash Flow

Cash generation is a clear strength recently: operating cash flow has been consistently positive from 2023–2025 and free cash flow is strongly positive, with a very large jump in 2025. Earlier years showed volatility (negative operating cash flow and free cash flow in 2021–2022, and negative free cash flow in 2020). Overall, cash flow quality and conversion look much improved, but the step-change in 2025 warrants monitoring for sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	130.80M	156.81M	163.01M	125.05M	117.13M
Gross Profit	6.86M	62.61M	57.91M	50.45M	41.65M
EBITDA	16.02M	21.96M	6.11M	4.68M	-6.66M
Net Income	5.03M	11.18M	2.56M	1.90M	-7.47M
Balance Sheet
Total Assets	96.65M	80.46M	81.96M	100.33M	79.27M
Cash, Cash Equivalents and Short-Term Investments	35.32M	13.38M	5.00M	9.66M	4.83M
Total Debt	0.00	0.00	3.87M	25.09M	16.61M
Total Liabilities	21.92M	21.13M	33.30M	54.46M	35.23M
Stockholders Equity	74.73M	59.33M	48.66M	45.88M	44.04M
Cash Flow
Free Cash Flow	18.50M	12.06M	16.61M	-4.35M	-6.12M
Operating Cash Flow	18.72M	18.84M	19.16M	-179.00K	-1.93M
Investing Cash Flow	-5.62M	-6.78M	-2.55M	-4.17M	-4.19M
Financing Cash Flow	10.36M	-3.87M	-21.22M	9.65M	2.40M

Arcoma AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCOMA	68 Neutral	kr118.76M	21.88	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NEOLA	41 Neutral	kr58.62M	-5.12	―	―	―	―