Paxman AB (PAX) AI Stock Analysis

• Market Cap: kr1.20B
• Dividend Yield: N/A
• Average Volume (3M): 100.37K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 21.71%
• EPS Growth: -80.37%
• Country: SE
• Employees: 105
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.40
• Shares Outstanding: 23,273,417
• 10 Day Avg. Volume: 41,338
• 30 Day Avg. Volume: 100,373
• PEG Ratio: 0.54
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 3.95
• P/FCF Ratio: -145.60
• 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): 1.81
• Revenue Forecast (FY): kr465.65M

• Rating: 56 Neutral
• Price Target: kr55.00 ▲(1.10% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by mixed financial performance—strong balance-sheet resilience and ongoing revenue growth are offset by a sharp 2025 margin/earnings breakdown and uneven cash generation. Technical indicators are moderately supportive in the near term, but valuation is pressured by losses and a negative P/E.

Positive Factors

Recurring revenue model

The business derives recurring revenue from consumables, service and leases tied to an installed base. This creates durable revenue visibility and customer stickiness: as placements grow, repeat consumable and service sales provide predictable cash flow and leverage installed units for long-term margins.

Low leverage and larger equity cushion

Very low debt and a material increase in equity provide balance-sheet resilience, lowering solvency risk and preserving strategic optionality. This financial flexibility supports investment in placements, R&D or geographic expansion without immediate reliance on costly external funding.

Sustained revenue growth

Consistent top-line growth over multiple years shows ongoing market demand and adoption of Paxman systems. Continued revenue expansion sustains installed-base growth, which in turn fuels recurring consumable and service sales and supports scalable long-term revenue generation.

Negative Factors

Sharp gross margin collapse

A sudden collapse in gross margin materially weakens the core economics of product sales and consumables. If structural (pricing pressure, cost increases or mix shifts), it undermines profitability of the recurring revenue model, reduces reinvestment capacity and prolongs weak returns until margins are restored.

Inconsistent cash generation & negative FCF

Repeated negative free cash flow and volatile operating cash flow limit the firm's ability to self-fund growth and maintenance of the installed base. Sustained negative FCF increases reliance on external financing, raising execution risk on expansion and potentially pressuring service and consumable investments.

Return on equity turned negative

Negative ROE signals the company is destroying shareholder value currently, reflecting profitability and efficiency shortfalls. Persistently negative returns make it harder to justify capital allocation, can deter investors, and may constrain long-term growth if not corrected by margin or profit recovery.

Paxman AB Business Overview & Revenue Model

Company Description

Paxman AB (publ), together with its subsidiaries, develops and sells Paxman scalp cooling system to minimize hair loss in connection with chemotherapy treatment in Europe, the United States, Mexico, Japan, Oceania, rest of Asia, and South and Central America. It serves various cancer centers and hospitals. The comapny has a research collaboration agreement with National University Hospital, Singapore for the development of portable cooling and compression device. Paxman AB (publ) was founded in 1996 and is based in Karlshamn, Sweden.

How the Company Makes Money

Paxman AB generates revenue primarily through the sale and rental of its scalp cooling systems to hospitals and clinics. The company also offers maintenance and support services for these systems, contributing to its revenue streams. Additionally, Paxman may earn revenue through partnerships with healthcare providers and cancer treatment centers, which can enhance the adoption of its technology. The company may also explore opportunities in international markets, expanding its reach and potential customer base, thereby increasing its earnings potential.

Paxman AB Financial Statement Overview

Summary

Mixed fundamentals: revenue continues to grow, and the balance sheet is strong with very low leverage and expanding equity. However, 2025 profitability deteriorated sharply (gross margin collapse and net loss), and cash-flow quality is uneven with recurring negative free cash flow, limiting the score.

Income Statement

Revenue has grown strongly over the last several years (from 2020 through 2024) and still increased in 2025 (+6.19% annually), showing continued demand. However, profitability deteriorated sharply in 2025: gross margin collapsed to ~1.4% (vs ~69% in 2023–2024) and the company swung to a net loss (net margin ~-5.3%) despite a still-positive EBITDA margin (~9.1%). The mix of ongoing top-line growth but a sudden margin/earnings breakdown keeps the income statement at a mid-range score.

Balance Sheet

Leverage is very low in recent years, with debt-to-equity around ~0.03 in 2025 and ~0.09–0.15 in 2021–2024, indicating a conservative capital structure. Equity has also expanded materially (to ~405m in 2025 from ~164m in 2024), supporting balance-sheet resilience. The key weakness is returns: return on equity turned negative in 2025 following the earnings loss, which raises questions about near-term efficiency even though solvency risk appears limited.

Cash Flow

Cash generation has been inconsistent. Operating cash flow was strong in 2024 but fell sharply in 2025, and free cash flow is negative in multiple years (2021–2023 and 2025), including a sizable outflow in 2022. In 2025, operating cash flow covered only a small portion of accounting earnings (given the net loss and low cash conversion), and free cash flow remained negative, suggesting higher reinvestment needs and/or weaker working-capital dynamics. The main positive is that operating cash flow is still positive in 2025, but overall cash-flow quality is uneven.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	313.35M	253.01M	210.12M	156.75M	96.20M
Gross Profit	4.26M	175.42M	146.42M	101.44M	64.52M
EBITDA	28.46M	49.73M	31.23M	16.18M	1.25M
Net Income	-16.71M	40.20M	8.33M	-10.32M	-12.78M
Balance Sheet
Total Assets	479.11M	227.23M	167.12M	173.96M	166.34M
Cash, Cash Equivalents and Short-Term Investments	120.83M	40.31M	24.98M	38.09M	72.27M
Total Debt	13.01M	14.29M	13.57M	16.98M	17.15M
Total Liabilities	73.95M	63.24M	44.51M	59.76M	40.59M
Stockholders Equity	405.16M	163.99M	122.62M	114.20M	125.75M
Cash Flow
Free Cash Flow	-8.50M	15.99M	-9.70M	-33.01M	-27.94M
Operating Cash Flow	6.23M	39.10M	15.63M	2.69M	-4.14M
Investing Cash Flow	-32.35M	-24.50M	-25.33M	-36.69M	-24.45M
Financing Cash Flow	108.83M	721.00K	-3.41M	-169.00K	97.28M

Paxman AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PAX, the sentiment is Positive. The current price of 54.4 is above the 20-day moving average (MA) of 48.86, above the 50-day MA of 51.30, and below the 200-day MA of 66.69, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:PAX.

Paxman AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAX	56 Neutral	kr1.20B	-69.18	1.41%	―	21.71%	-80.37%
CRAD.B	55 Neutral	kr849.24M	81.66	6.93%	―	-5.80%	-65.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SEZI	49 Neutral	kr698.82M	-4.73	-36.55%	―	62.24%	21.16%
OSSD	47 Neutral	kr662.65M	-12.53	―	―	38.43%	57.76%
BRAIN	45 Neutral	kr204.15M	-3.62	-27.22%	―	16.38%	35.71%
SEDANA	44 Neutral	kr825.49M	-13.93	-4.42%	―	13.48%	28.98%