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Arjo AB
(ARJO.B)
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Rating:65Neutral
Price Target:
kr28.00
▲(6.06% Upside)
Action:Reiterated
Date:07/15/26
Overall score reflects stable but capped fundamentals: manageable leverage and positive earnings/cash flow are offset by thin and compressed margins plus declining free cash flow. Technicals provide a meaningful lift due to improving momentum above key short- and mid-term averages, while valuation is neutral-to-slightly supportive given a ~3.6% dividend but a ~20x P/E. The earnings call adds a modest positive tilt on growth and cash improvements, tempered by persistent cost and margin headwinds.
Positive Factors
Recurring aftermarket revenue
A large portion of sales comes from service, maintenance, parts and consumables tied to an installed base, creating recurring revenue. This durable mix smooths cyclical capital spending, supports steady cash flow and increases lifetime customer value over multiple years.
Negative Factors
Thin and compressed margins
Profitability is structurally thin and has deteriorated versus prior years, limiting reinvestment capacity and sensitivity to cost shocks. Persistent low margins reduce resilience to price pressure or higher costs and constrain the company's ability to build significant excess returns long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket revenue
A large portion of sales comes from service, maintenance, parts and consumables tied to an installed base, creating recurring revenue. This durable mix smooths cyclical capital spending, supports steady cash flow and increases lifetime customer value over multiple years.
Read all positive factors
Arjo AB (ARJO.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr7.53B
Dividend Yield3.36%
Average Volume (3M)513.42K
Price to Earnings (P/E)19.5
Beta (1Y)0.64
Revenue Growth-3.08%
EPS Growth-10.70%
CountrySE
Employees7,000
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)1.42
Shares Outstanding254,152,370
10 Day Avg. Volume450,788
30 Day Avg. Volume513,419
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.17
Price to Sales (P/S)0.79
P/FCF Ratio11.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.83
Revenue Forecast (FY)kr11.14B
Arjo AB Business Overview & Revenue Model
Company Description
Arjo AB is a medical technology company focused on improving mobility and hygiene for people with reduced mobility, primarily serving hospitals, long-term care facilities, and home-care settings. The company develops and sells equipment and soluti...
How the Company Makes Money
Arjo makes money primarily by selling medical devices and capital equipment used in patient care, such as patient handling and transfer equipment, medical beds, hygiene systems, and therapeutic solutions, to healthcare providers and care facilitie...
Arjo AB Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a mix of encouraging operational and financial improvements—solid organic growth (4.7%), record ReNu sales, slight increases in adjusted EBIT and EBITDA, improved cash flow and cash conversion, and a robust equity ratio—while also highlighting meaningful margin pressures from transportation and material costs, product/country mix effects, price erosion in specific segments, and weaker U.S. rental profitability. Management is taking governance and strategic steps (regional leaders, Capital Markets Day) to drive value creation. On balance, the positives (growth, cash improvement, margin discipline, strategic actions) modestly outweigh the negatives (cost and margin headwinds), supporting a cautiously positive view.Positive Updates
Solid Organic Sales Growth
Organic growth of 4.7% in Q2 2026 with strong contributions from global sales; Western Europe and Rest of World grew ~7% and Western Europe alone grew 6%. North America continued to grow with the U.S. leading.
Negative Updates
Margin Pressure from Costs and Mix
Gross margin declined year‑over‑year; gross profit was negatively impacted by SEK 23 million YoY. Drivers included increased transportation costs, higher material costs and an unfavorable product and country mix (stronger lower-margin growth outside North America).
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Organic Sales Growth
Organic growth of 4.7% in Q2 2026 with strong contributions from global sales; Western Europe and Rest of World grew ~7% and Western Europe alone grew 6%. North America continued to grow with the U.S. leading.
Read all positive updates
Company Guidance
Guidance from the call was modest but specific: management said they “see clear potential to improve Arjo’s value generation” and will present a full strategy with concrete numbers and timing at the Capital Markets Day on 24 September; near‑term operational guidance noted the ~SEK 10m one‑off transportation cost from the new TMS should fade in Q3 and the remaining ~SEK 1m of U.S. tariff reimbursement (on top of SEK 22m already received) is expected mainly in Q3. They stressed continued focus on cost control and cash generation, with Q2 reference metrics including organic growth 4.7%, adjusted EBIT SEK 211m (vs SEK 208m), adjusted EBITDA SEK 482m (17.5% margin), EBIT margin 7.6% (vs 6.5%), OpEx/sales 34.6% (down from 35.5%), organic OpEx growth 1.9%, operating cash flow SEK 257m (+SEK 52m), cash conversion 53.3% (vs 46.6%), working capital days 87, net debt/adjusted EBITDA 2.4x and equity ratio 49.5%.Arjo AB Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.92B | 11.00B | 11.29B | 10.98B | 9.98B | 9.07B |
| Gross Profit | 4.21B | 4.32B | 4.91B | 4.74B | 4.21B | 4.21B |
| EBITDA | 1.78B | 1.81B | 2.03B | 1.96B | 1.70B | 2.03B |
| Net Income | 384.00M | 334.00M | 498.00M | 480.00M | 449.00M | 742.00M |
Balance Sheet | ||||||
| Total Assets | 15.68B | 14.98B | 16.28B | 16.00B | 16.17B | 14.61B |
| Cash, Cash Equivalents and Short-Term Investments | 818.00M | 836.00M | 892.00M | 923.00M | 949.00M | 757.00M |
| Total Debt | 5.57B | 5.35B | 5.42B | 5.49B | 6.31B | 5.45B |
| Total Liabilities | 7.92B | 7.52B | 7.94B | 8.42B | 8.54B | 7.73B |
| Stockholders Equity | 7.76B | 7.46B | 8.34B | 7.58B | 7.62B | 6.88B |
Cash Flow | ||||||
| Free Cash Flow | 965.00M | 757.00M | 838.00M | 1.38B | 15.00M | 974.00M |
| Operating Cash Flow | 1.54B | 1.44B | 1.52B | 2.06B | 915.00M | 1.73B |
| Investing Cash Flow | -648.00M | -705.00M | -635.00M | -638.00M | -902.00M | -695.00M |
| Financing Cash Flow | -900.00M | -730.00M | -907.00M | -1.43B | 136.00M | -1.28B |
Arjo AB Technical Analysis
Positive
26.40
Price Trends
26.12
Positive
25.47
Positive
26.91
Positive
Market Momentum
0.41
Positive
62.47
Neutral
73.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ARJO.B, the sentiment is Positive. The current price of 26.4 is below the 20-day moving average (MA) of 27.17, above the 50-day MA of 26.12, and below the 200-day MA of 26.91, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ARJO.B.
Arjo AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr19.22B | 32.23 | 10.82% | 0.95% | 0.82% | 77.45% | |
71 Outperform | kr8.88B | 100.21 | 4.13% | ― | 8.79% | -20.48% | |
65 Neutral | kr7.53B | 19.48 | 5.03% | 3.60% | -3.08% | -10.70% | |
56 Neutral | kr29.85B | 43.71 | ― | ― | ― | ― | |
52 Neutral | kr543.18M | -64.58 | -2.84% | ― | -13.72% | 52.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | kr1.09B | -30.61 | -3.99% | ― | -0.34% | 29.54% |
* Healthcare Sector Average
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Arjo AB Corporate Events
Arjo Delivers Solid Q2 Growth and Refines Strategy for Profitability
Jul 14, 2026
Arjo reported a solid second quarter, with net sales rising to SEK 2,759 million and organic growth of 4.7%, driven by strong demand for patient handling equipment, medical beds and service. Despite a slightly lower gross margin, adjusted EBITDA a...
Arjo Sets July 14 Date for Q2 2026 Report and Investor Call
Jun 30, 2026
Arjo has scheduled the release of its second-quarter 2026 interim report for Tuesday, July 14, at 07:00 CEST. The Swedish medical equipment supplier will follow the publication with a conference call at 08:00 CEST, led by President and CEO Andr...
Arjo to Outline Strategy and Profitability Plans at 2026 Capital Markets Day
Jun 25, 2026
Arjo has scheduled a Capital Markets Day for September 24, 2026, in central Stockholm, which will also be accessible online for analysts, investors, and media. The event underscores the company’s ongoing engagement with financial stakeholder...
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.