Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: $8.99B
• Dividend Yield: 2.88%
• Average Volume (3M): 386.22K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.64
• Revenue Growth: 0.35%
• EPS Growth: -19.02%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.34
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 557,015
• 30 Day Avg. Volume: 386,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 6.85
• 1Y Price Target: $34.96
• Price Target Upside: 5.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: kr35.00 ▲(6.06% Upside)

Arjo AB's overall stock score is driven by mixed financial performance, with stable margins but declining revenue growth and cash flow challenges. Technical analysis indicates a neutral to slightly bearish outlook, with the stock trading below key moving averages. The valuation is moderate, with a reasonable P/E ratio and a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

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

Arjo AB demonstrates a mixed financial performance. The income statement shows stable margins but declining revenue growth. The balance sheet is strong with low leverage and healthy equity. However, cash flow challenges persist with negative free cash flow growth. The company needs to address revenue and cash flow issues to enhance overall financial health.

Income Statement

Arjo AB's income statement shows moderate performance. The TTM gross profit margin is stable at 43.46%, indicating consistent cost management. However, the net profit margin has decreased to 3.82% from 4.41% in the previous year, reflecting reduced profitability. The revenue growth rate is negative at -1.16%, suggesting a decline in sales. EBIT and EBITDA margins are relatively stable, but the decline in revenue growth is a concern.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.16, significantly improved from 0.65 last year, indicating reduced leverage. Return on equity is modest at 5.45%, showing efficient use of equity. The equity ratio is healthy, suggesting a stable financial structure. Overall, the balance sheet is robust with low financial risk.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -2.49%, indicating declining cash generation. The operating cash flow to net income ratio is 0.36, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.78, showing decent cash flow relative to profits. However, the negative growth in free cash flow is a concern.

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: Negative
• Last Price: 33.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 33 is below the 20-day moving average (MA) of 34.08, below the 50-day MA of 33.99, and below the 200-day MA of 34.28, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 17.63 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	70 Outperform	20.36B	137.55	18.57%	―	44.52%	-49.29%
MCAP	66 Neutral	9.13B	45.58	16.18%	―	9.32%	-7.55%
ARJO.B	60 Neutral	$8.99B	20.90	5.34%	2.88%	0.35%	-19.02%
ALIF.B	60 Neutral	23.30B	69.10	6.40%	0.39%	4.56%	185.59%
VITR	57 Neutral	17.87B	39.26	3.43%	0.83%	0.14%	0.00%
EKTA.B	53 Neutral	19.18B	70.00	3.02%	4.78%	-1.54%	-75.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Arjo AB Corporate Events

Arjo Appoints Christofer Carlsson as Permanent CFO

Arjo has announced the appointment of Christofer Carlsson as the permanent CFO, effective September 1, 2025. Carlsson, who has been with the company since 2017 and served as interim CFO since January 2025, is expected to continue enhancing Arjo’s financial governance and reporting, contributing to the company’s strategic development.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK36.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

Arjo’s Incoming CEO Acquires Synthetic Call Options

Arjo’s incoming CEO, Andréas Elgaard, has acquired synthetic call options on the company’s shares, issued by its principal owner, Carl Bennet AB. This acquisition, valued at SEK 5 million, involves 1,184,834 options with a five-year term and is expected to align the CEO’s interests with the company’s performance, potentially impacting Arjo’s market positioning and stakeholder confidence.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK36.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.

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.