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Aroa Biosurgery Ltd (AU:ARX)
ASX:ARX
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Aroa Biosurgery Ltd (ARX) AI Stock Analysis

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AU:ARX

Aroa Biosurgery Ltd

(Sydney:ARX)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
AU$1.00
▲(25.00% Upside)
Aroa Biosurgery Ltd's stock score is primarily influenced by its strong technical momentum and solid financial stability, despite profitability and valuation challenges. The positive operational improvements are promising, but the lack of earnings and dividend yield weigh on the overall score.

Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)

Aroa Biosurgery Ltd Business Overview & Revenue Model

Company DescriptionAroa Biosurgery Limited, a regenerative medicine company, engages in the developing, manufacturing, and distributing medical devices for wound and tissue repair using extracellular matrix (ECM) technology in the United States and internationally. The company's products include Endoform Natural and Endoform Antimicrobia Restorative Bioscaffold for treating acute and chronic wounds; Myriad Matrix, an engineered ECM for soft tissue repair, reinforcement, and complex wounds; Myriad Morcells, a morcellized (powdered) format of Myriad Matrix for soft tissue repair and complex wounds; and Reinforced Bioscaffolds, a surgical product for use in ventral hernia repair and abdominal wall reconstruction. Aroa Biosurgery Limited was incorporated in 2007 and is headquartered in Auckland, New Zealand.
How the Company Makes MoneyAroa Biosurgery generates revenue primarily through the sale of its regenerative medicine products to hospitals, healthcare providers, and surgical centers. The company has established key revenue streams through direct sales and strategic partnerships with distributors that expand its market reach. Additionally, Aroa may engage in collaborations with other healthcare companies to co-develop products or access new markets, further enhancing its revenue potential. The company's focus on innovative solutions and its ability to demonstrate improved patient outcomes contribute to its competitive positioning and revenue growth.

Aroa Biosurgery Ltd Financial Statement Overview

Summary
Aroa Biosurgery Ltd shows strong revenue growth and a robust balance sheet, but faces profitability and cash flow challenges. The positive EBITDA margin in 2025 indicates operational improvements, yet persistent negative net income and free cash flow are concerns.
Income Statement
62
Positive
Aroa Biosurgery Ltd has demonstrated solid revenue growth, with a significant increase from 2024 to 2025. The gross profit margin is strong, indicating efficient cost management. However, persistent negative net income and EBIT margins reflect ongoing profitability challenges. The negative EBITDA margin in previous years is a concern, though it has turned positive in 2025, showing operational improvements.
Balance Sheet
70
Positive
The balance sheet is robust with a high equity ratio, suggesting financial stability and a low debt burden. The debt-to-equity ratio is favorable, highlighting prudent leverage management. However, the return on equity is negative due to net losses, indicating inefficiencies in generating shareholder returns.
Cash Flow
58
Neutral
Cash flow management shows improvement with a reduced negative operating cash flow. However, free cash flow remains negative, indicating challenges in generating sufficient cash to cover capital expenditures. The free cash flow to net income ratio is not applicable due to negative net income, but overall trends suggest gradual improvement in cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue77.15M76.97M63.36M59.31M36.88M20.51M
Gross Profit66.15M65.99M54.10M50.06M28.17M14.25M
EBITDA486.58K2.65M-6.78M3.24M-3.75M-7.05M
Net Income-3.49M-3.47M-9.75M-370.68K-7.79M-17.63M
Balance Sheet
Total Assets98.94M98.94M101.88M109.07M104.71M73.12M
Cash, Cash Equivalents and Short-Term Investments20.13M20.13M27.73M43.00M53.35M33.93M
Total Debt5.83M5.83M6.82M6.65M5.46M14.90M
Total Liabilities14.35M14.35M14.79M13.69M11.30M19.43M
Stockholders Equity84.59M84.59M87.08M95.38M93.40M53.69M
Cash Flow
Free Cash Flow-4.48M-5.69M-10.00M-10.66M-15.39M-6.05M
Operating Cash Flow-2.37M-2.33M-6.76M-3.53M-10.86M-4.68M
Investing Cash Flow444.62K273.54K9.31M6.79M-32.41M-19.74M
Financing Cash Flow-2.00M-1.34M-948.41K-471.78K34.98M34.06M

Aroa Biosurgery Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.80
Price Trends
50DMA
0.70
Positive
100DMA
0.64
Positive
200DMA
0.57
Positive
Market Momentum
MACD
0.03
Negative
RSI
70.83
Negative
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ARX, the sentiment is Positive. The current price of 0.8 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.70, and above the 200-day MA of 0.57, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 70.83 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ARX.

Aroa Biosurgery Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$18.36B47.2320.11%1.51%4.32%9.24%
61
Neutral
AU$274.30M-78.71-4.06%20.36%64.81%
58
Neutral
$891.19M67.5416.49%23.31%151.32%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
AU$830.45M-22.71-44.49%55.91%22.60%
44
Neutral
AU$176.12M-16.52-70.55%-257.32%
41
Neutral
AU$73.35M-5.46-31.98%34.20%-23.90%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ARX
Aroa Biosurgery Ltd
0.80
0.23
40.35%
AU:PNV
Polynovo
1.29
-0.70
-35.01%
AU:COH
Cochlear
280.68
-5.83
-2.04%
AU:CYC
Cyclopharm Limited
0.66
-0.75
-53.19%
AU:EMV
EMvision Medical Devices Ltd.
1.90
0.04
2.15%
AU:4DX
4DMedical Ltd
1.61
1.09
209.62%

Aroa Biosurgery Ltd Corporate Events

Aroa Biosurgery Releases Q2 Cashflow Report Highlighting Regenerative Healing Focus
Oct 15, 2025

Aroa Biosurgery Ltd has released its Q2 quarterly cashflow report, emphasizing its commitment to advancing regenerative healing technologies. The announcement, while not a prospectus or an offer of securities, serves to educate investors about the company’s financial performance and strategic direction. This release could impact the company’s market positioning by highlighting its ongoing efforts in innovation and product development, potentially influencing stakeholder perceptions and investment decisions.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Reports Strong Quarter and Anticipates Favorable US Policy Changes
Oct 15, 2025

Aroa Biosurgery Limited reported positive financial performance for the quarter ending September 2025, with a net cash flow of NZ$2.1 million and cash receipts of NZ$23.5 million. The company achieved its highest sales quarter for the Myriad product line and published eight new peer-reviewed studies, enhancing its clinical credibility. A proposed US reimbursement policy change could benefit Aroa’s Symphony product, potentially improving its market positioning. The company plans to release its H1 FY26 results in November and will host an investor event in Sydney.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.82 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery to Host Webinar on Quarterly Results
Oct 9, 2025

Aroa Biosurgery Limited announced it will host a webinar to discuss its September quarterly results, featuring CEO Brian Ward and CFO James Agnew. This event signifies the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Cessation of Securities
Oct 8, 2025

Aroa Biosurgery Ltd announced the cessation of several securities, including restricted stock units, options, and performance rights, due to unmet conditions or expiry without exercise. This update reflects adjustments in the company’s issued capital and may impact stakeholders’ perception of the company’s financial strategies and market positioning.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Updates Director’s Interest in Securities
Sep 23, 2025

Aroa Biosurgery Ltd has announced a change in the director’s interest notice, specifically regarding Brian Ward’s indirect interest in the company’s securities. The update reveals an increase in performance share rights, which were issued following shareholder approval at the recent Annual General Meeting. This change reflects the company’s ongoing commitment to aligning its leadership’s interests with shareholder value and could potentially impact its market positioning by strengthening stakeholder confidence.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Issues Performance Rights to Boost Employee Incentives
Sep 23, 2025

Aroa Biosurgery Ltd has announced the issuance of 1,051,869 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize and retain key employees, potentially impacting its operational efficiency and competitive positioning in the biosurgery market.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Successful AGM Results
Aug 20, 2025

Aroa Biosurgery Limited announced the results of its Annual General Meeting, where all resolutions were carried, including the re-election of Mr. James McLean, approval of auditor’s remuneration, issuance of equity securities under the Aroa Omnibus Incentive Plan, and the issuance of long-term incentives to CEO Brian Ward. These outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and strategic initiatives, reinforcing its position in the soft tissue regeneration industry.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Ltd Releases Investor Education Presentation
Aug 20, 2025

Aroa Biosurgery Ltd has released a presentation intended for investor education, emphasizing that it is not an offer of securities or a prospectus. The presentation includes forward-looking statements about the company’s future performance, which are based on current expectations and assumptions. Stakeholders are advised to consider these statements with caution due to their inherent uncertainty and the subjective judgments involved.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Reports Strong Growth and Expands Product Range Amid Market Challenges
Aug 20, 2025

Aroa Biosurgery reported a successful fiscal year with a 23% growth in business, increased margins, and efficient cash management, alongside three consecutive quarters of positive cash flow. The company anticipates continued growth despite new US tariffs, leveraging expanding sales in Europe and other markets. Clinical studies have reinforced the efficacy of AROA ECM products, emphasizing their value in reducing hospital stays and improving patient outcomes. Product development included enhancements to the Ovitex range and the ongoing commercialization of Enivo technology, aimed at addressing unmet clinical needs. TELA Bio remains a strategic partner, contributing to Aroa’s cash flow and market presence, although market sentiment towards TELA Bio has been mixed.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.90 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Ltd Announces Hybrid AGM with Key Resolutions
Aug 6, 2025

Aroa Biosurgery Ltd has announced its upcoming Annual General Meeting (AGM) scheduled for August 20, 2025, which will be conducted as a hybrid meeting allowing both physical and online attendance. The meeting will cover several key items including the board chair’s and CEO’s addresses, consideration of financial results, and resolutions on director re-election, auditor’s remuneration, and the issuance of equity securities under the Aroa Omnibus Incentive Plan. This AGM is significant for stakeholders as it includes important resolutions that could impact the company’s governance and financial strategies.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.93 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Releases Q1 FY26 Report Highlighting Regenerative Healing Focus
Jul 29, 2025

Aroa Biosurgery Ltd released its quarterly report for Q1 FY26, emphasizing its commitment to unlocking regenerative healing. The report, intended for investor education, highlights the company’s strategic direction and market positioning, although it does not serve as a prospectus or an offer of securities. The company cautions that past performance is not indicative of future outcomes and includes forward-looking statements that are subject to change.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.93 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Reports Positive Cash Flow and Reaffirms Growth Guidance
Jul 29, 2025

Aroa Biosurgery Limited announced its third consecutive quarter of positive net cash flow, with operating cash flow reaching NZ$1.7 million and strong customer cash receipts of NZ$22.5 million. The company reaffirmed its FY26 revenue guidance of NZ$92-100 million and normalised EBITDA of NZ$5-8 million, indicating a growth trajectory. The company also highlighted the sustained growth of its Myriad product line and the publication of two new peer-reviewed clinical studies, reinforcing the efficacy of its ECM technology. These developments are expected to strengthen Aroa’s market position and provide significant value to stakeholders.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$0.93 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Director’s Interest Change
Jul 25, 2025

Aroa Biosurgery Ltd announced a change in the director’s interest, specifically involving Phillip McCaw. The change entails the lapse of 81,925 options due to expiry, impacting McCaw’s indirect holdings through various trusts. This adjustment reflects routine portfolio management and does not indicate any immediate strategic shifts for the company.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Director’s Change in Securities Interest
Jul 25, 2025

Aroa Biosurgery Limited announced a change in the interests of its director, John Pinion, as per the latest notice to the ASX. The change involved the lapse of 245,775 options exercisable at $0.75 due to expiry, which impacts the director’s holdings but does not alter the number of fully paid ordinary shares held. This update reflects routine adjustments in director holdings, which are part of standard corporate governance practices, and is unlikely to have significant implications for the company’s operations or market position.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Director’s Change in Securities Interest
Jul 25, 2025

Aroa Biosurgery Ltd has announced a change in the director’s interest, specifically involving the lapse of options due to expiry. This change reflects a reduction in the number of options held by Director James McLean, which may impact his financial stake in the company but does not affect the overall number of fully paid ordinary shares he holds. Such changes are routine and part of the company’s regulatory compliance, with no immediate implications for stakeholders or the company’s market position.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Director’s Interest Change
Jul 25, 2025

Aroa Biosurgery Ltd has announced a change in the director’s interest, specifically noting the lapse of 3,132,525 options held by Director Brian Ward due to their expiry on July 23, 2025. This change reflects a reduction in Ward’s indirect holdings, which may impact the company’s governance dynamics and stakeholder perceptions, although it does not involve any financial consideration.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

Aroa Biosurgery Announces Cessation of Securities
Jul 25, 2025

Aroa Biosurgery Ltd announced the cessation of 5,104,050 securities due to the expiry of options without exercise or conversion as of July 23, 2025. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and market positioning.

The most recent analyst rating on (AU:ARX) stock is a Buy with a A$1.05 price target. To see the full list of analyst forecasts on Aroa Biosurgery Ltd stock, see the AU:ARX Stock Forecast page.

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.Date of analysis: Oct 23, 2025