Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: kr7.09B
• Dividend Yield: 3.01%
• Average Volume (3M): 513.42K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.54
• Revenue Growth: -0.05%
• EPS Growth: -13.44%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.26
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 450,788
• 30 Day Avg. Volume: 513,419
• PEG Ratio: -0.80
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 11.52
• 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): 2.02
• Revenue Forecast (FY): kr10.81B

• Rating: 54 Neutral
• Price Target: kr27.00 ▼(-16.56% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is held back primarily by weakening profitability trends and bearish technicals. Support comes from resilient cash generation and a maintained dividend, while valuation is reasonable but not clearly compelling given ongoing margin uncertainty highlighted on the earnings call.

Positive Factors

Strong operating cash flow and conversion

Consistently strong operating cash flow and improved cash conversion reinforce financial resilience. Durable OCF supports dividends, funds restructuring and IT programs, and allows debt reduction or targeted investment even if margins remain pressured, reducing funding risk over 2–6 months.

Product innovation and commercial momentum

Fresh product launches that get positive feedback can drive sustainable demand, improve competitive positioning, and increase attach rates for services/consumables. Over the medium term this supports market share recovery and structural revenue resilience versus peers lacking recent innovation.

Working capital and balance sheet improvement

Improving working capital and an equity ratio near 50% increase liquidity and financial flexibility. Lower working capital days and manageable leverage enable the company to sustain dividends, fund strategic initiatives, and better absorb margin volatility without immediate external financing.

Negative Factors

Gross margin deterioration

A multi-percentage point gross margin decline reflects mix shifts, tariffs/currency and pricing pressure. If structural (product mix and competitive pricing in key markets), this undermines sustainable profitability and makes long-term margin recovery dependent on product repositioning or cost reduction programs.

Profitability and margin compression

Significant year-over-year EBIT and EBITDA compression signals weaker operating leverage. Persistently lower margins reduce free cash flow generation and returns on capital, forcing management into restructuring or pricing actions that may take multiple quarters to restore sustainable profitability.

Slower revenue growth amid rising leverage

Flat-to-declining top-line combined with rising leverage constrains strategic optionality. Slower revenue growth reduces capacity to deleverage organically and weakens return metrics (ROE down), limiting funds for R&D and commercial expansion unless margins or growth reaccelerate.

Arjo AB Business Overview & Revenue Model

Company Description

Arjo AB (publ) develops and sells medical devices and solutions for patients with reduced mobility and age-related health challenges in North America, Western Europe, and internationally. It offers products and solutions for patient handling, hygiene, disinfection, medical beds, treatment and prevention of pressure injuries and leg ulcers, prevention of deep vein thrombosis, treatment of edema, and for obstetric and cardiac diagnostics. The company also provides dementia and bariatric room assessment solutions, as well as clinical consulting, maintenance, and equipment rental and financing solutions. It serves private and public institutions that provide acute and long-term care. The company was founded in 1957 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Arjo AB generates revenue through the sale and rental of medical equipment and devices, as well as through service and maintenance contracts. Key revenue streams include direct sales of products like patient lifts and beds, which are often sold to healthcare facilities and institutions. Additionally, Arjo earns income from leasing its equipment, providing a recurring revenue model. The company also benefits from service agreements that ensure ongoing maintenance and support for its products. Strategic partnerships with healthcare providers and distributors further enhance its market reach and contribute to its earnings through collaborative sales efforts and shared resources.

Arjo AB Financial Statement Overview

Summary

Stable profitability and consistently positive operating cash flow, but recent momentum is weaker: revenue dipped in 2025, net margin and EBIT/EBITDA margins compressed materially, ROE declined, and leverage has trended higher.

Income Statement

Revenue has been essentially flat over the period and declined in 2025 (annual revenue growth -1.6%), indicating a slower top-line trajectory. Profitability has also stepped down versus earlier years: net margin fell from ~8.2% (2021) to ~3.0% (2025), with EBIT and EBITDA margins also compressing. Positively, the business still generates solid gross margins (~39–46%) and remained profitable each year, but the recent margin erosion is the key concern.

Balance Sheet

Leverage is moderate but has trended higher recently, with debt-to-equity moving up to ~0.83 in 2025 from ~0.65 in 2024 (and far higher than 2020). Equity remains sizeable relative to assets, but returns to shareholders have softened: return on equity declined to ~4.5% in 2025 from mid-to-high single digits in prior years (and ~10.8% in 2021). Overall, the balance sheet looks workable, but rising leverage alongside weaker returns reduces flexibility.

Cash Flow

Operating cash flow remains consistently positive (SEK ~0.9–2.3bn), and free cash flow is positive in most years, supporting financial resilience. However, cash generation has become more volatile: free cash flow fell ~26.7% in 2025 and was near breakeven in 2022, and free cash flow relative to earnings is moderate (~0.53 in 2025). The trend suggests cash conversion is adequate but not consistently strong year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.00B	11.29B	10.98B	9.98B	9.07B
Gross Profit	4.32B	4.91B	4.74B	4.21B	4.21B
EBITDA	1.81B	2.03B	1.96B	1.70B	2.03B
Net Income	334.00M	498.00M	480.00M	449.00M	742.00M
Balance Sheet
Total Assets	14.98B	16.28B	16.00B	16.17B	14.61B
Cash, Cash Equivalents and Short-Term Investments	836.00M	892.00M	923.00M	949.00M	757.00M
Total Debt	6.21B	5.42B	5.49B	6.31B	5.45B
Total Liabilities	7.52B	7.94B	8.42B	8.54B	7.73B
Stockholders Equity	7.46B	8.34B	7.58B	7.62B	6.88B
Cash Flow
Free Cash Flow	757.00M	838.00M	1.38B	15.00M	974.00M
Operating Cash Flow	1.44B	1.52B	2.06B	915.00M	1.73B
Investing Cash Flow	-705.00M	-635.00M	-638.00M	-902.00M	-695.00M
Financing Cash Flow	-730.00M	-907.00M	-1.43B	136.00M	-1.28B

Arjo AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ARJO.B, the sentiment is Negative. The current price of 32.36 is above the 20-day moving average (MA) of 26.88, above the 50-day MA of 29.19, and above the 200-day MA of 31.67, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 33.92 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ARJO.B.

Arjo AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BONEX	72 Outperform	kr12.78B	87.10	19.59%	―	37.41%	67.03%
MCAP	64 Neutral	kr7.31B	37.43	15.16%	―	11.30%	-14.49%
ALIF.B	61 Neutral	kr18.02B	18.64	7.24%	0.46%	5.14%	236.75%
EKTA.B	55 Neutral	kr21.22B	20.15	3.08%	4.25%	-0.90%	-70.95%
ARJO.B	54 Neutral	kr7.09B	31.15	5.42%	3.01%	-0.05%	-13.44%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VITR	49 Neutral	kr12.69B	-0.87	3.34%	0.80%	-1.29%	―

Arjo AB Corporate Events

Arjo Ends 2025 With Solid Demand, Weaker Margins and New Strategy Drive

Arjo reported stable global demand in the fourth quarter of 2025, posting 3.4% organic sales growth but a decline in reported net sales to SEK 2.8 billion and weaker profitability, as the gross margin fell to 42.1% and adjusted operating profit dropped to SEK 249 million, pressured by adverse currency movements, US tariffs, product and geographic mix, and margin pressure in US DVT and rental operations. Despite missing its profitability ambitions for 2025, the company delivered strong cash generation with a Q4 cash conversion of nearly 120% and full-year conversion in line with its 80% target, proposed an unchanged dividend of SEK 0.95 per share, reaffirmed its 3–5% organic growth target for 2026, and launched a strategic review under its new CEO to sharpen its long‑term direction, efficiency and market positioning, with a new plan expected in the second half of 2026.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK33.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

Arjo Sets January 30 Date for 2025 Year-End Report and Investor Call

Arjo has scheduled the publication of its 2025 year-end report for Friday, January 30, 2026 at 12:00 CET, followed by a conference call at 13:00 CET led by President and CEO Andréas Elgaard and CFO Christofer Carlsson. The company is offering fund managers, analysts and media access to the results presentation via an online conference and downloadable materials, with a recording available for three years, underlining its ongoing focus on transparency and engagement with the financial community ahead of its full-year financial disclosure.

The most recent analyst rating on ($SE:ARJO.B) stock is a Buy with a SEK35.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.