Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: kr8.70B
• Dividend Yield: 3.01%
• Average Volume (3M): 513.42K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.51
• Revenue Growth: -0.05%
• EPS Growth: -13.44%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.33
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 450,788
• 30 Day Avg. Volume: 513,419
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: kr35.00 ▲(8.16% Upside)

Arjo AB's overall stock score reflects its strong financial stability and positive technical indicators. The fair valuation supports the score, although challenges in revenue growth and profitability need addressing. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates financial stability and low leverage, providing Arjo AB with the flexibility to invest in growth opportunities without the burden of high debt costs.

Cash Flow Generation

Improved free cash flow growth suggests efficient cash conversion, enabling Arjo AB to reinvest in business operations, fund new projects, or return capital to shareholders, supporting long-term business sustainability.

Gross Profit Margin

A stable gross profit margin indicates consistent cost management, allowing Arjo AB to maintain profitability even as it faces challenges in other areas, such as revenue growth.

Negative Factors

Revenue Growth Decline

Negative revenue growth suggests potential challenges in market demand or competitive pressures, which could impact Arjo AB's ability to expand its market share and achieve long-term growth objectives.

Net Profit Margin Pressure

A decrease in net profit margin indicates pressure on profitability, which could limit Arjo AB's ability to invest in future growth and innovation, potentially affecting long-term competitiveness.

Earnings Growth Decline

A decline in earnings per share growth reflects challenges in profitability and operational efficiency, potentially impacting investor confidence and the company's ability to fund future initiatives.

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 financial stability with a strong balance sheet and improved cash flow generation. However, challenges are present with declining revenue growth and net profit margins in the TTM, indicating pressure on profitability.

Income Statement

Arjo AB's income statement shows a stable gross profit margin around 43%, indicating consistent cost management. However, the net profit margin has slightly decreased to 3.8% in the TTM, reflecting pressure on profitability. Revenue growth has turned negative in the TTM, which is a concern. EBIT and EBITDA margins are stable, but the recent decline in revenue growth needs attention.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.16 in the TTM, indicating low leverage and financial stability. Return on equity has slightly decreased to 5.4%, suggesting moderate profitability. The equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth in the TTM, indicating better cash generation. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio is relatively high at 0.78, suggesting efficient cash conversion. However, past fluctuations in free cash flow growth highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.18B	11.29B	10.98B	9.98B	9.07B	9.08B
Gross Profit	4.75B	4.91B	4.74B	4.21B	4.21B	4.13B
EBITDA	2.06B	2.03B	1.96B	1.70B	2.03B	1.82B
Net Income	438.00M	498.00M	480.00M	449.00M	742.00M	526.00M
Balance Sheet
Total Assets	15.19B	16.28B	16.00B	16.17B	14.61B	13.86B
Cash, Cash Equivalents and Short-Term Investments	705.00M	892.00M	923.00M	949.00M	757.00M	972.00M
Total Debt	5.47B	5.42B	5.49B	6.31B	5.45B	1.10B
Total Liabilities	7.67B	7.94B	8.42B	8.54B	7.73B	8.23B
Stockholders Equity	7.52B	8.34B	7.58B	7.62B	6.88B	5.63B
Cash Flow
Free Cash Flow	1.03B	838.00M	1.38B	15.00M	974.00M	1.46B
Operating Cash Flow	1.31B	1.52B	2.06B	915.00M	1.73B	2.27B
Investing Cash Flow	-725.00M	-635.00M	-638.00M	-902.00M	-695.00M	-981.00M
Financing Cash Flow	-576.00M	-907.00M	-1.43B	136.00M	-1.28B	-954.00M

Arjo AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.36
• 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 Negative. The current price of 32.36 is above the 20-day moving average (MA) of 31.57, above the 50-day MA of 31.30, and below the 200-day MA of 32.46, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARJO.B	71 Outperform	kr8.70B	19.80	5.42%	3.01%	-0.05%	-13.44%
VITR	71 Outperform	kr17.59B	40.96	3.34%	0.80%	-1.29%	―
BONEX	66 Neutral	kr11.96B	77.68	19.59%	―	37.41%	67.03%
ALIF.B	64 Neutral	kr18.95B	47.23	7.24%	0.46%	5.14%	236.75%
MCAP	62 Neutral	kr8.26B	40.57	15.16%	―	11.30%	-14.49%
EKTA.B	55 Neutral	kr23.04B	78.29	3.08%	4.25%	-0.90%	-70.95%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Arjo AB Corporate Events

Arjo Sets January 30 Date for 2025 Year-End Report and Investor Call

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 fund managers, analysts and media access to the results presentation via an online conference and downloadable materials, with a recording available for three years, underlining its ongoing focus on transparency and engagement with the financial community ahead of its full-year financial disclosure.

The most recent analyst rating on ($SE:ARJO.B) stock is a Buy with a SEK35.00 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 Strong Q3 Growth and Leadership Transition

Arjo AB reported a 3.8% organic sales growth in Q3 2025, despite a slight decline in net sales. The company maintained profitability with an adjusted operating profit increase of over 20%, excluding currency and tariff effects. Arjo’s strategic focus on cost efficiency and market expansion, particularly in India, contributed to its performance. The appointment of Andréas Elgaard as the new CEO and an upgraded ESG rating to AAA by MSCI highlight Arjo’s commitment to sustainability and leadership transition.

The most recent analyst rating on ($SE:ARJO.B) stock is a Hold with a SEK35.00 price target. To see the full list of analyst forecasts on Arjo AB stock, see the SE:ARJO.B Stock Forecast page.