Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: $9.41B
• Dividend Yield: 2.75%
• Average Volume (3M): 350.22K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.65
• Revenue Growth: 0.35%
• EPS Growth: -19.02%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Distribution
• EPS (TTM): 0.39
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 354,197
• 30 Day Avg. Volume: 350,223
• PEG Ratio: 4.99
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 11.79
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 6.85
• 1Y Price Target: $35.01
• Price Target Upside: 1.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: kr36.00 ▲(4.17% Upside)

Arjo AB's overall stock score of 63 reflects a mixed financial performance with stable margins but declining revenue growth and cash flow challenges. The technical analysis indicates a neutral to slightly bearish outlook, while the valuation suggests a fair price with a reasonable dividend yield. The absence of earnings call and corporate events data limits further insights.

Arjo AB Business Overview & Revenue Model

Company Description

Arjo AB is a global medical technology company focused on improving the quality of life for people with reduced mobility and age-related health challenges. Operating primarily in the healthcare sector, Arjo provides a range of products and services designed for patient handling, hygiene, and rehabilitation. Its core offerings include medical beds, patient lifts, bathing solutions, and pressure ulcer prevention systems, which are utilized in hospitals, nursing homes, and home care settings.

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

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	11.26B	11.29B	10.98B	9.98B	9.07B	9.08B
Gross Profit	4.89B	4.91B	4.74B	4.21B	4.21B	4.13B
EBITDA	2.07B	2.03B	1.96B	1.73B	2.07B	1.82B
Net Income	430.00M	498.00M	480.00M	449.00M	742.00M	526.00M
Balance Sheet
Total Assets	15.46B	16.28B	16.00B	16.17B	14.61B	13.86B
Cash, Cash Equivalents and Short-Term Investments	766.00M	892.00M	923.00M	949.00M	757.00M	972.00M
Total Debt	1.19B	5.42B	5.49B	6.31B	5.45B	1.10B
Total Liabilities	7.92B	7.94B	8.42B	8.54B	7.73B	8.23B
Stockholders Equity	7.54B	8.34B	7.58B	7.62B	6.88B	5.63B
Cash Flow
Free Cash Flow	1.02B	838.00M	1.38B	15.00M	974.00M	1.46B
Operating Cash Flow	1.30B	1.52B	2.06B	915.00M	1.73B	2.27B
Investing Cash Flow	-767.00M	-635.00M	-638.00M	-902.00M	-695.00M	-981.00M
Financing Cash Flow	-475.00M	-907.00M	-1.43B	136.00M	-1.28B	-954.00M

Arjo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 34.56 is above the 20-day moving average (MA) of 33.65, above the 50-day MA of 34.12, and above the 200-day MA of 34.23, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 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
ARJO.B	63 Neutral	$9.41B	21.99	5.34%	2.75%	0.35%	-19.02%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%
0O5H	―	kr17.97B	66.10	2.76%	―	―	―
0YAY	―	kr18.50B	41.15	3.46%	5.40%	―	―
ADDLF	―	$2.28B	70.10	6.27%	0.19%	―	―
BOEUF	―	$2.16B	149.98	20.14%	―	―	―
61MA	―	€835.51M	47.05	15.85%	―	―	―

Arjo AB Corporate Events

Arjo Appoints Andréas Elgaard as New CEO to Drive Growth

Arjo AB has announced the appointment of Andréas Elgaard as the new President and CEO, effective by the end of January 2026. Elgaard, who brings extensive international business experience from his previous roles at ITAB Shop Concept AB and IKEA, is expected to drive Arjo’s growth and strengthen its market position, leveraging his expertise in building high-performing teams and delivering results.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK40.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

Arjo AB Announces CEO Transition

Arjo AB announced that Niclas Sjöswärd will be stepping down from his role as interim President and CEO by mid-January 2026 to pursue a position outside the company. The recruitment process for a new CEO is currently underway, and the Board of Directors expressed confidence in Niclas’s leadership during the transition period.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK40.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

Arjo AB Reports Q2 2025 Growth Amid New Product Launches

Arjo AB’s interim report for Q2 2025 highlights a 3.0% organic growth in net sales, despite a slight decline in overall sales compared to the previous year. The company launched a new acute care stretcher, Sentego, and reported strong performance in the US and Canada, with double-digit growth. Arjo is focusing on cost efficiency to counteract currency and tariff impacts, and anticipates strong sales development in the latter half of 2025, supported by a robust order book and new product launches.

The most recent analyst rating on ($SE:ARJO.B) stock is a Sell with a SEK28.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

Arjo Sets 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.