Arjo AB (ARJO.B) AI Stock Analysis

• Market Cap: kr9.40B
• Dividend Yield: 2.7%
• Average Volume (3M): 668.95K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.62
• Revenue Growth: 0.35%
• EPS Growth: -19.02%
• Country: SE
• Employees: 6,500
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Distribution
• EPS (TTM): 0.39
• Shares Outstanding: 254,152,370
• 10 Day Avg. Volume: 625,220
• 30 Day Avg. Volume: 668,954
• PEG Ratio: -2.54
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.85
• 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: kr34.99
• Price Target Upside: 0.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: kr40.00 ▲(14.61%Upside)

Arjo AB's strong financial performance, particularly in cash flow management, combined with positive technical trends, supports a robust stock score. Valuation metrics are reasonable, though careful monitoring of the debt-to-equity ratio is advised.

Arjo AB Business Overview & Revenue Model

Company Description

Arjo AB is a global medical technology company dedicated to improving the lives of people affected by reduced mobility and age-related health challenges. The company operates primarily in the healthcare sector, specializing in products and solutions that enhance mobility, prevent pressure injuries, manage venous thromboembolism, and ensure safe patient handling. Arjo's offerings include medical beds, therapeutic mattresses, lifting and transfer solutions, hygiene systems, and disinfection solutions, catering to hospitals, long-term care facilities, and home care settings.

How the Company Makes Money

Arjo AB generates revenue through the sale and rental of its medical products and solutions to healthcare facilities and caregivers around the world. The company's key revenue streams include the direct sale of medical devices and related products, rental services for equipment, and after-sales support, including maintenance and training services. Additionally, Arjo benefits from strategic partnerships and collaborations with healthcare providers and institutions, enhancing its market reach and offering tailored solutions that meet specific customer needs. The company's focus on innovation and quality positions it as a reliable partner in the healthcare industry, contributing to its financial performance.

Arjo AB Financial Statement Overview

Summary

Arjo AB demonstrates solid financial health with consistent revenue growth and strong cash flows. However, profitability margins are stable, and attention is needed on optimizing the debt-to-equity ratio.

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

Arjo AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.90
• 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 34.9 is above the 20-day moving average (MA) of 34.26, above the 50-day MA of 32.41, and above the 200-day MA of 34.75, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 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	76 Outperform	kr9.40B	21.87	5.34%	2.70%	0.35%	-19.02%
BONEX	70 Neutral	kr21.36B	144.31	20.14%	―	44.52%	-49.29%
VIMIAN	67 Neutral	kr19.59B	87.77	3.34%	―	16.00%	126.41%
MCOV.B	66 Neutral	kr39.41B	112.94		0.55%	18.16%	35.85%
VITR	63 Neutral	kr18.98B	41.70	3.46%	0.77%	0.14%	―
EKTA.B	63 Neutral	kr18.49B	78.03	2.43%	4.98%	-0.57%	-81.80%
Sector *	52 Neutral	$7.34B	-0.07	-63.86%	2.36%	16.17%	0.23%

Arjo AB Corporate Events

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.