Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: kr9.30B
• Dividend Yield: 26.34%
• Average Volume (3M): 884.13K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.58
• Revenue Growth: 2.66%
• EPS Growth: -10.72%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Distribution
• EPS (TTM): 0.34
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 555,908
• 30 Day Avg. Volume: 884,134
• PEG Ratio: -0.60
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 707.07
• 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: kr27.97
• Price Target Upside: -18.12% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ―

Arjo AB's strong financial performance with robust cash flow management and consistent revenue growth are significant strengths. The technical indicators show a moderate bullish trend, reinforcing positive sentiment. However, the valuation raises some concerns due to the exceptionally high dividend yield, which could imply potential risks. The absence of new earnings call data limits further insights into recent company developments.

Arjo AB Business Overview & Revenue Model

Company Description

Arjo AB (ARJO.B) is a global provider of medical devices and solutions that improve quality of life for people with reduced mobility and age-related health challenges. Headquartered in Sweden, the company operates in the healthcare sector, focusing on products that facilitate patient handling, hygiene, disinfection, and wound care. Arjo's offerings are designed to enhance the efficiency of caregivers and ensure safety and dignity for patients.

How the Company Makes Money

Arjo AB generates revenue primarily through the sale and rental of its medical devices and solutions to healthcare facilities such as hospitals, nursing homes, and clinics. The company's key revenue streams include the sales of patient handling equipment, such as ceiling lifts and slings, hygiene systems like showering and bathing solutions, as well as therapeutic support systems for wound care and prevention. Additionally, Arjo offers service agreements and support to ensure the longevity and effectiveness of their equipment, which provides a steady stream of revenue. The company also benefits from strategic partnerships and distribution agreements that expand its market reach globally, contributing significantly to its earnings.

Arjo AB Financial Statement Overview

Summary

Arjo AB demonstrates solid financial health with consistent revenue growth and strong cash flows. While profitability margins are stable, attention is needed on leveraging strategies to optimize the debt-to-equity ratio. Overall, the company is well-positioned within the Medical - Distribution industry, with strong operational efficiency and cash flow management.

Income Statement

Arjo AB's income statement reflects consistent revenue growth, with a TTM revenue increase of approximately 13% since 2022. The gross profit margin stands at 42.7% TTM, indicating strong cost management. However, the net profit margin has declined slightly to 4.0% TTM from 4.4% in 2024. EBIT and EBITDA margins remain stable, suggesting robust operational performance.

Balance Sheet

The balance sheet shows a healthy equity ratio of 51.2% TTM, reflecting financial stability. However, the debt-to-equity ratio is relatively high at 0.67, which may pose a risk. Return on equity is moderate at 5.8% TTM, indicating room for improvement in generating returns for shareholders.

Cash Flow

Operating cash flow remains strong, covering net income by more than 3 times TTM. The free cash flow growth rate is impressive at 15.6% TTM, highlighting efficient capital expenditures. The free cash flow to net income ratio is robust at 2.1, showcasing effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.40B	11.29B	10.98B	9.98B	9.07B	9.08B
Gross Profit	4.87B	4.91B	4.74B	4.21B	4.21B	4.13B
EBITDA	2.09B	2.03B	1.96B	1.73B	2.07B	1.82B
Net Income	458.00M	498.00M	480.00M	449.00M	742.00M	526.00M
Balance Sheet
Total Assets	15.31B	16.28B	16.00B	16.17B	14.61B	13.86B
Cash, Cash Equivalents and Short-Term Investments	609.00M	892.00M	923.00M	949.00M	757.00M	972.00M
Total Debt	5.25B	5.42B	5.49B	6.31B	5.45B	1.10B
Total Liabilities	7.47B	7.94B	8.42B	8.54B	7.73B	8.23B
Stockholders Equity	7.84B	8.34B	7.58B	7.62B	6.88B	5.63B
Cash Flow
Free Cash Flow	969.00M	838.00M	1.38B	15.00M	974.00M	1.46B
Operating Cash Flow	1.44B	1.52B	2.06B	915.00M	1.73B	2.27B
Investing Cash Flow	-709.00M	-635.00M	-638.00M	-902.00M	-695.00M	-981.00M
Financing Cash Flow	-879.00M	-907.00M	-1.43B	136.00M	-1.28B	-954.00M

Arjo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 34.16 is above the 20-day moving average (MA) of 32.34, above the 50-day MA of 31.62, and below the 200-day MA of 35.29, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.46 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIMIAN	72 Outperform	€20.47B	93.14	3.18%	―	16.00%	126.41%
BONEX	69 Neutral	kr18.65B	152.31	18.01%	―	52.17%	-54.60%
ARJO.B	67 Neutral	kr9.30B	20.32	5.58%	26.34%	2.66%	-10.72%
MCOV.B	66 Neutral	kr38.27B	109.69		0.59%	18.16%	35.85%
VITR	65 Neutral	kr19.11B	38.37	3.79%	7.55%	3.17%	―
EKTA.B	64 Neutral	kr18.64B	78.94	2.43%	4.92%	-0.57%	-81.68%
Sector *	46 Neutral	C$190.36M	-4.25	-8.56%	3.09%	13.53%	-1.76%

Arjo AB Corporate Events

Arjo Sets Date for Q2 2025 Report and Conference Call

Arjo has announced the release date for its Q2 2025 interim report, which will be issued on July 11, followed by a conference call hosted by interim President and CEO Niclas Sjöswärd and interim CFO Christofer Carlsson. This announcement is significant for stakeholders, including fund managers, analysts, and media, as it provides an opportunity to engage with the company’s leadership and gain insights into its financial performance and strategic direction.

The most recent analyst rating on ($SE:ARJO.B) stock is a Buy with a SEK49.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.