Paxman AB (PAX) AI Stock Analysis

• Market Cap: kr1.32B
• Dividend Yield: N/A
• Average Volume (3M): 100.37K
• Price to Earnings (P/E): 203.5
• Beta (1Y): 0.04
• Revenue Growth: 21.71%
• EPS Growth: -80.37%
• Country: SE
• Employees: 105
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.10
• Shares Outstanding: 23,273,417
• 10 Day Avg. Volume: 41,338
• 30 Day Avg. Volume: 100,373
• PEG Ratio: 0.08
• Price to Book (P/B): 7.61
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 78.00
• 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: 52 Neutral
• Price Target: kr54.00 ▼(-0.74% Downside)

Paxman AB's overall stock score is primarily impacted by its strong financial performance, despite challenges in profitability and cash flow. Technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing stability and flexibility for future investments.

Gross Profit Margin

A strong gross profit margin suggests effective cost control and pricing strategies, which can sustain profitability over time.

Negative Factors

Declining Profit Margins

Decreasing profit margins may indicate rising costs or pricing pressures, which could affect long-term profitability.

Negative Free Cash Flow

Negative free cash flow can strain financial resources, limiting the company's ability to invest in growth and innovation.

Return on Equity Decline

A declining return on equity suggests reduced efficiency in generating returns from equity, potentially impacting investor confidence.

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

Paxman AB shows strong financial performance with consistent revenue growth and improved profitability. The balance sheet is solid with low leverage, enhancing financial stability. However, the decline in free cash flow is a potential risk that needs to be addressed to ensure sustainable growth and liquidity.

Income Statement

Paxman AB has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 4.38% and a significant increase from previous years. The gross profit margin is healthy at 55.58% TTM, although it has decreased from previous periods. The net profit margin has improved to 8.22% TTM, indicating better profitability. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.03 TTM, indicating minimal leverage and financial risk. The return on equity is strong at 11.67% TTM, reflecting efficient use of equity to generate profits. The equity ratio is solid, showing a stable financial position with a significant portion of assets financed by equity.

Cash Flow

While operating cash flow remains positive, the free cash flow has seen a significant decline of 76.93% TTM, which could be a concern for future investments and liquidity. The operating cash flow to net income ratio is 0.89, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.08M	253.01M	210.12M	156.75M	96.20M	78.05M
Gross Profit	198.69M	175.42M	146.42M	101.44M	64.52M	50.69M
EBITDA	41.41M	49.73M	31.23M	16.18M	1.25M	-2.60M
Net Income	4.83M	40.20M	8.33M	-10.32M	-12.78M	-19.19M
Balance Sheet
Total Assets	487.65M	227.23M	167.12M	173.96M	166.34M	77.01M
Cash, Cash Equivalents and Short-Term Investments	129.53M	40.31M	24.98M	38.09M	72.27M	3.58M
Total Debt	10.72M	14.29M	13.57M	16.98M	17.15M	48.23M
Total Liabilities	59.89M	63.24M	44.51M	59.76M	40.59M	66.12M
Stockholders Equity	427.76M	163.99M	122.62M	114.20M	125.75M	10.89M
Cash Flow
Free Cash Flow	-5.18M	15.99M	-9.70M	-33.01M	-27.94M	-14.80M
Operating Cash Flow	16.30M	39.10M	15.63M	2.69M	-4.14M	-8.48M
Investing Cash Flow	-23.99M	-24.50M	-25.33M	-36.69M	-24.45M	-6.32M
Financing Cash Flow	103.12M	721.00K	-3.41M	-169.00K	97.28M	16.78M

Paxman AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.40
• 50DMA: Negative
• 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:PAX, the sentiment is Negative. The current price of 54.4 is below the 20-day moving average (MA) of 54.64, below the 50-day MA of 58.27, and below the 200-day MA of 70.40, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PAX.

Paxman AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	66 Neutral	kr1.10B	46.81	6.93%	―	-5.80%	-65.99%
PAX	52 Neutral	kr1.32B	203.46	1.41%	―	21.71%	-80.37%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OSSD	50 Neutral	kr1.17B	-25.46	―	―	38.43%	57.76%
BRAIN	49 Neutral	kr199.00M	-4.23	-27.22%	―	16.38%	35.71%
SEDANA	48 Neutral	kr973.50M	-23.92	-4.42%	―	13.48%	28.98%
SEZI	43 Neutral	kr812.80M	-5.89	-36.55%	―	62.24%	21.16%