Arjo AB Class B (SE:ARJO.B)
:ARJO.B
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Arjo AB
(ARJO.B)
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Rating:54Neutral
Price Target:
kr27.00
▼(-16.56% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Arjo AB (ARJO.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr6.72B
Dividend Yield3.01%
Average Volume (3M)513.42K
Price to Earnings (P/E)26.1
Beta (1Y)0.54
Revenue Growth-0.05%
EPS Growth-13.44%
CountrySE
Employees6,500
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.26
Shares Outstanding254,152,370
10 Day Avg. Volume450,788
30 Day Avg. Volume513,419
Financial Highlights & Ratios
PEG Ratio-0.80
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)1.97
Revenue Forecast (FY)kr10.76B
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, hygi...
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...
Arjo AB Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call presented a mix of operational and financial strengths (notably very strong operating cash flow, improved working capital, maintained dividend, product launches and inventory progress) alongside meaningful profitability and market challenges (gross margin decline, lower EBIT/EBITDA, UK weakness, U.S. rental and DVT pressure, and restructuring costs). Management emphasized efficiency initiatives and a forthcoming strategic review to address margin headwinds. Overall, positives on cash generation and balance sheet improvement are balanced by material margin and market issues.Positive Updates
Strong operating cash flow and improved cash conversion
Operating cash flow in Q4 was SEK 600 million, up SEK 121 million year-over-year, driven by inventory reduction and better receivable collection. Quarterly cash conversion was almost 120% (vs 82% last year) and full-year cash conversion reached 79% (near the 80% target and an increase versus 2024).
Negative Updates
Gross margin deterioration
Q4 gross margin fell to 42.1% from 44.7% a year earlier (down 2.6 percentage points). Management attributed approximately 1 p.p. to currency and U.S. tariffs, ~1 p.p. to unfavorable geographic and product mix (higher low-margin medical beds volumes), and additional pressure from delayed U.S. flu season and DVT price pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong operating cash flow and improved cash conversion
Operating cash flow in Q4 was SEK 600 million, up SEK 121 million year-over-year, driven by inventory reduction and better receivable collection. Quarterly cash conversion was almost 120% (vs 82% last year) and full-year cash conversion reached 79% (near the 80% target and an increase versus 2024).
Read all positive updates
Company Guidance
Arjo reiterated a top-line outlook of 3–5% for 2026 and said it will present a refreshed strategy and any updated financial targets in H2 2026; the Board proposes maintaining the dividend at SEK 0.95. Management highlighted key metrics underpinning the guidance: Q4 gross margin 42.1% (vs 44.7% LY) with ~1pp impact from mix and ~1pp from tariffs/currency, adjusted EBITDA Q4 SEK 526m (vs SEK 653m), adjusted EBIT Q4 SEK 249m (vs SEK 375m) and an EBIT margin of 8.9% (vs 12.5% LY), FX headwind to adjusted EBIT of SEK 73m, OpEx up SEK 23m (organic OpEx +1.9%), restructuring costs SEK 68m (SEK 35m IT write‑down, SEK 33m Global Sales), Q4 operating cash flow SEK 600m (+SEK 121m YoY) with cash conversion ~120% in Q4 and 79% for the full year (target ~80%), working capital days 76 (from 82), net debt/adjusted EBITDA 2.2, equity ratio 49.8%, investing cash flow Q4 SEK 172m (including SEK 90m SlingCare), and an ERP/IT harmonization expected to deliver at least SEK 30m annual savings from 2028.Arjo AB Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
60
Neutral
| 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
Negative
32.36
Price Trends
26.98
Negative
29.17
Negative
31.19
Negative
Market Momentum
-0.61
Negative
33.59
Neutral
59.30
Neutral
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 25.63, above the 50-day MA of 26.98, and above the 200-day MA of 31.19, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 59.30 is Neutral, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr12.27B | 87.10 | 19.59% | ― | 37.41% | 67.03% | |
64 Neutral | kr6.83B | 37.43 | 15.16% | ― | 11.30% | -14.49% | |
61 Neutral | kr16.41B | 18.64 | 7.24% | 0.46% | 5.14% | 236.75% | |
54 Neutral | kr6.72B | 26.11 | 4.40% | 3.01% | -0.05% | -13.44% | |
54 Neutral | kr20.56B | 546.38 | 3.08% | 4.25% | -0.90% | -70.95% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | kr12.46B | -3.70 | 3.34% | 0.80% | -1.29% | ― |
* Healthcare Sector Average
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Arjo AB Corporate Events
Arjo Ends 2025 With Solid Demand, Weaker Margins and New Strategy Drive
Jan 30, 2026
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 dr...
Arjo Sets January 30 Date for 2025 Year-End Report and Investor Call
Jan 8, 2026
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...
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.