Paxman AB (PAX) AI Stock Analysis

• Market Cap: kr1.07B
• Dividend Yield: N/A
• Average Volume (3M): 100.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• 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: kr48.00 ▼(-11.76% Downside)
• 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

Sustained Revenue Growth

Consistent revenue growth, including a 6.2% rise in 2025, indicates durable demand for Paxman's scalp-cooling systems. A rising top line helps expand the installed base, which drives recurring consumable and service revenues and strengthens multi-quarter cash flow visibility.

Strong Balance-Sheet Resilience

Very low leverage and a materially larger equity base provide financial flexibility and lower solvency risk. This conservative capital structure supports investment in system placements, service capability and geographic expansion without immediate refinancing pressure.

Recurring Revenue Business Model

Paxman's mix of system sales/leases plus recurring consumables and service contracts creates predictable, installed-base-driven revenue. That recurring stream improves revenue visibility and supports long-term unit economics as adoption across oncology centers broadens.

Negative Factors

Sharp Margin Deterioration

A dramatic gross margin collapse and a swing to net loss point to structural issues in pricing, cost control or product mix. Such severe margin pressure reduces internal funding for growth, risks repeating across periods, and undermines the economics of the recurring-revenue model unless addressed.

Uneven Cash Generation

Repeated negative free cash flow and a sharp drop in operating cash flow limit the company's ability to self-fund placements, consumable inventory and service expansion. Persistent cash deficits increase reliance on external financing or equity and constrain strategic flexibility.

Negative Returns on Equity

ROE turning negative signals that capital is not generating returns and reflects operational inefficiency tied to the 2025 loss. Sustained negative returns can erode shareholder value and raise questions about management execution and capital allocation choices over coming quarters.

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 makes money primarily by selling and/or leasing its scalp cooling systems to healthcare providers (e.g., hospitals and oncology clinics) and by generating recurring revenue tied to ongoing use of those systems. Key revenue streams typically include: (1) system revenue: income from initial placement of scalp cooling units (through outright sale or rental/lease arrangements, depending on contract structure); (2) recurring consumables and accessories: revenue from patient-facing items used with treatments (e.g., cooling caps and other system-related consumables/accessories) that need replacement over time; and (3) service and support: maintenance, service contracts, training, and other support services that accompany installed systems. Earnings are influenced by the size of the installed base (which drives recurring consumable and service demand), chemotherapy treatment volumes at customer sites, and the company’s ability to expand distribution and win placements in new clinics and geographies. Specific named partnerships, customer concentration, or contract terms: null.

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: Negative
• Last Price: 54.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 above the 20-day moving average (MA) of 49.84, above the 50-day MA of 50.35, and below the 200-day MA of 65.60, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 28.69 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
PAX	56 Neutral	kr1.07B	-74.03	-4.20%	―	21.71%	-80.37%
CRAD.B	55 Neutral	kr854.30M	168.74	6.93%	―	-5.80%	-65.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SEZI	49 Neutral	kr727.12M	-5.78	-36.55%	―	62.24%	21.16%
OSSD	47 Neutral	kr670.39M	-24.57	―	―	38.43%	57.76%
BRAIN	45 Neutral	kr216.79M	-4.05	-27.22%	―	16.38%	35.71%
SEDANA	44 Neutral	kr922.84M	-17.24	-4.42%	―	13.48%	28.98%