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Aroa Biosurgery Ltd
(Sydney:ARX)
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Rating:62Neutral
Price Target:
AU$0.56
▼(-0.54% Downside)
Action:Reiterated
Date:10/01/26
The score is supported primarily by improved financial performance (turnaround to positive earnings and free cash flow with a strong balance sheet). It is held back by weak technical signals (below key moving averages with negative MACD) and a relatively expensive valuation (high P/E) without a provided dividend yield.
Positive Factors
Strong Revenue Growth
The substantial multi-year increase in revenue indicates expanding commercial adoption of Aroa’s ECM products and broader market penetration. Continued growth in hospital, surgical, and wound-care demand can provide operating leverage and create a stronger base for future earnings expansion.
Negative Factors
Profitability Recently Turned Positive
The earnings turnaround is encouraging, but several consecutive years of losses mean the current profit level has not yet been demonstrated across a full operating cycle. Sustained execution will be needed to establish that positive earnings are durable rather than an early-stage inflection.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The substantial multi-year increase in revenue indicates expanding commercial adoption of Aroa’s ECM products and broader market penetration. Continued growth in hospital, surgical, and wound-care demand can provide operating leverage and create a stronger base for future earnings expansion.
Read all positive factors
Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$179.87M
Dividend YieldN/A
Average Volume (3M)186.50K
Price to Earnings (P/E)43.3
Beta (1Y)0.61
Revenue Growth19.23%
EPS GrowthN/A
CountryAU
Employees273
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.01
Shares Outstanding345,902,650
10 Day Avg. Volume351,544
30 Day Avg. Volume186,503
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)2.48
Price to Sales (P/S)2.23
P/FCF Ratio24.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$0.94Price Target Upside67.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.02
Revenue Forecast (FY)AU$120.56M
Aroa Biosurgery Ltd Business Overview & Revenue Model
Company Description
Aroa Biosurgery Limited operates as a regenerative medicine company dedicated to the development, production, and global distribution of medical solutions for wound and tissue repair. The firm innovatively utilizes extracellular matrix (ECM) techn...
How the Company Makes Money
Aroa Biosurgery makes money primarily by selling its ECM-based surgical and wound-care products (medical devices/biomaterials) to healthcare providers. Revenue is generated from product sales, typically recognized when products are shipped or deli...
Aroa Biosurgery Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 92.28M | 76.97M | 63.36M | 59.31M | 36.88M |
| Gross Profit | 79.63M | 65.99M | 54.10M | 50.06M | 28.17M |
| EBITDA | 9.03M | 2.66M | -7.36M | 593.88K | -3.75M |
| Net Income | 4.16M | -3.47M | -9.75M | -370.68K | -7.79M |
Balance Sheet | |||||
| Total Assets | 100.48M | 98.94M | 101.88M | 109.07M | 104.71M |
| Cash, Cash Equivalents and Short-Term Investments | 22.60M | 20.13M | 27.73M | 43.00M | 53.35M |
| Total Debt | 5.31M | 5.83M | 6.82M | 6.65M | 5.46M |
| Total Liabilities | 17.74M | 14.35M | 14.79M | 13.69M | 11.30M |
| Stockholders Equity | 82.74M | 84.59M | 87.08M | 95.38M | 93.40M |
Cash Flow | |||||
| Free Cash Flow | 8.39M | -5.69M | -10.00M | -10.66M | -15.39M |
| Operating Cash Flow | 9.37M | -2.33M | -6.76M | -3.53M | -10.86M |
| Investing Cash Flow | 3.80M | 273.54K | 9.31M | 6.79M | -32.41M |
| Financing Cash Flow | -1.55M | -1.34M | -948.41K | -471.78K | 34.98M |
Aroa Biosurgery Ltd Technical Analysis
Negative
0.56
Price Trends
0.55
Negative
0.58
Negative
0.61
Negative
Market Momentum
-0.01
Negative
42.50
Neutral
54.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARX, the sentiment is Negative. The current price of 0.56 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.55, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 54.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ARX.
Aroa Biosurgery Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$645.94M | 88.21 | 8.45% | ― | 12.94% | -44.50% | |
69 Neutral | AU$8.40B | 57.06 | 8.01% | 2.69% | -0.90% | -62.14% | |
62 Neutral | AU$179.87M | 43.33 | 4.96% | ― | 19.23% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | AU$21.97M | -0.52 | -259.31% | ― | 14.85% | -1.74% | |
44 Neutral | AU$25.69M | -1.46 | -245.90% | ― | 43.92% | 65.23% | |
41 Neutral | AU$177.03M | -1.68 | -169.40% | ― | 3420.67% | 27.04% |
* Healthcare Sector Average
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Aroa Biosurgery Ltd Corporate Events
Aroa Biosurgery to Brief Investors on Interim MASTRR Registry Findings
Sep 28, 2026
Aroa Biosurgery will host an investor webinar on 7 October 2026 to discuss the interim analysis from its ongoing MASTRR Registry, which tracks outcomes for its soft-tissue regeneration products. The session, led by founder and CEO Brian Ward along...
Aroa Biosurgery Study Shows Low Infection Rates for Myriad Bioscaffold
Sep 3, 2026
Aroa Biosurgery has reported interim results from its ongoing MASTRR Registry, showing very low infection rates and no Myriad-related adverse events in complex soft tissue reconstruction. The peer-reviewed study in Advances in Therapy covers 411 p...
Aroa Biosurgery Issues New Unquoted Equity Under Employee Incentive Schemes
Aug 28, 2026
Aroa Biosurgery Limited has issued new unquoted equity securities under its employee incentive schemes, including 377,742 restricted stock units and 726,559 performance rights, both dated 26 August 2026. The move expands the company’s pool o...
Aroa Biosurgery Director John Diddams Steps Down but Retains Indirect Stake
Aug 21, 2026
Aroa Biosurgery Limited has announced that director John Diddams ceased to be a director of the company on 19 August 2026, as disclosed in a final director’s interest notice to the ASX. The filing outlines that Diddams holds no securities di...
Aroa Biosurgery shareholders back all resolutions at Annual General Meeting
Aug 19, 2026
Aroa Biosurgery Limited reported the results of its Annual General Meeting, with shareholders strongly backing all resolutions put to the vote. The AGM confirmed the company’s existing board and governance framework while endorsing executive...
Aroa Biosurgery Issues Investor Education Presentation With Key Disclaimers
Aug 18, 2026
Aroa Biosurgery has released an investor-focused presentation outlining information about the company and its operations, while emphasising that the material is educational rather than a solicitation to buy or sell securities. The document undersc...
Aroa Biosurgery Issues New Restricted Stock Units Under Employee Scheme
Aug 12, 2026
Aroa Biosurgery Ltd has notified the market of the issuance of 631,082 restricted stock units under its employee incentive scheme, effective August 11, 2026. The unquoted securities, which are not intended for listing on the ASX, signal the compan...
Aroa Biosurgery Issues 2.9 Million Restricted Stock Units Under Employee Incentive Plan
Jul 28, 2026
Aroa Biosurgery Limited has notified the market of a new issue of unquoted equity securities under its employee incentive scheme. The company is issuing 2,900,172 restricted stock units, recorded under ASX code ARXAAJ, with an issue date of July 2...
Aroa Biosurgery strengthens US commercial leadership to drive global growth
Jul 28, 2026
Aroa Biosurgery has expanded its US-based commercial leadership by appointing industry veteran Michael Lynskey as Chief Commercial Officer and adding him to the executive leadership team. Lynskey, who brings over two decades of global advanced wou...
Aroa Biosurgery Sets Fully Virtual 2026 AGM with Governance and CEO Incentive Votes
Jul 24, 2026
Aroa Biosurgery Limited has scheduled its 2026 Annual General Meeting for 19 August 2026, to be held entirely as a virtual event accessible to shareholders and proxies online. The company has distributed the notice of meeting and proxy forms and i...
Aroa Biosurgery Cuts Potential Dilution as Options and Rights Lapse
Jul 14, 2026
Aroa Biosurgery has notified the market of the cessation of several classes of equity-linked securities, including options and performance rights, under ASX rules. The company reported that more than 1.5 million options expired unexercised on 28 J...
Aroa Biosurgery Welcomes CMS Plan to Keep Outpatient Skin Substitute Rates
Jul 14, 2026
The United States Centers for Medicare Medicaid Services has proposed keeping the current calendar year 2026 payment framework for outpatient skin substitute products in 2027, including a single rate of US$127.14 per square centimetre. This move ...
Aroa Biosurgery CFO James Agnew Resigns After 13 Years of Service
Jul 9, 2026
Aroa Biosurgery announced that Chief Financial Officer and Joint Company Secretary James Agnew has resigned to pursue another opportunity, and will remain with the company until the end of November 2026 to ensure an orderly transition. The board h...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.