Aroa Biosurgery Ltd (AU:ARX)
ASX:ARX
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Aroa Biosurgery Ltd
(Sydney:ARX)
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Rating:69Neutral
Price Target:
AU$0.65
▲(21.89% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by improving financial performance—rapid revenue growth, a shift to positive earnings, and newly positive operating/free cash flow—backed by a conservatively levered balance sheet. Technicals are supportive with the stock trading above key moving averages and positive momentum readings. The main offset is valuation, with a high P/E and no dividend yield provided.
Positive Factors
Multi-year Revenue Growth
Sustained revenue expansion over multiple years indicates growing clinical adoption and deeper commercial penetration in wound care and reconstruction. This scale boost supports fixed-cost absorption, broadens customer relationships, and creates a larger base for durable margin and cash generation if growth persists.
Negative Factors
Cash Flow Volatility
The recent cash-flow inflection is promising, but historical swings (materially negative 2021–2025) mean cash conversion is not yet proven through a cycle. Continued positive cash from operations must be sustained to validate durability of earnings and to underwrite growth without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year Revenue Growth
Sustained revenue expansion over multiple years indicates growing clinical adoption and deeper commercial penetration in wound care and reconstruction. This scale boost supports fixed-cost absorption, broadens customer relationships, and creates a larger base for durable margin and cash generation if growth persists.
Read all positive factors
Aroa Biosurgery Ltd (ARX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$204.08M
Dividend YieldN/A
Average Volume (3M)302.12K
Price to Earnings (P/E)59.0
Beta (1Y)0.59
Revenue Growth19.23%
EPS GrowthN/A
CountryAU
Employees273
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding345,902,650
10 Day Avg. Volume330,836
30 Day Avg. Volume302,123
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$1.08Price Target Upside103.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 makes money primarily by selling biologic surgical and wound-care products manufactured from its ovine extracellular matrix technology to healthcare providers via commercial partners and distributors. Revenue is generated through: (1) product...
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 | 2.65M | -6.78M | 683.92K | -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
0.53
Price Trends
0.61
Negative
0.61
Negative
0.66
Negative
Market Momentum
>-0.01
Positive
41.44
Neutral
4.17
Positive
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 0.53 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.61, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, 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$204.08M | 59.00 | 4.20% | ― | 19.23% | ― | |
67 Neutral | AU$628.67M | 63.64 | 11.87% | ― | 19.36% | 66.28% | |
66 Neutral | AU$7.72B | 22.35 | 17.76% | 1.64% | 2.04% | -6.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | AU$2.49B | -12.87 | -890.76% | ― | -0.80% | -249.48% | |
44 Neutral | AU$140.83M | -12.89 | -70.29% | ― | ― | -62.15% | |
42 Neutral | AU$63.03M | -3.20 | -54.48% | ― | 17.24% | -20.00% |
* Healthcare Sector Average
AU:ARX
Aroa Biosurgery Ltd
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Aroa Biosurgery Ltd Corporate Events
Aroa Biosurgery Sets AGM Date as Long-Serving Director Plans Retirement
Jun 23, 2026
Aroa Biosurgery Ltd has scheduled its next Annual General Meeting for 19 August 2026, at which an election of directors will be held and full details will be provided in the formal meeting notice. The company has also set 1 July 2026 as the deadli...
Aroa Biosurgery Corrects Typo in FY26 Results Investor Presentation
May 26, 2026
Aroa Biosurgery has issued a correction to its FY26 Results Investor Presentation after identifying a typographical error in a reconciliation table describing profit or loss before income tax under NZ GAAP. The company stressed that the change is ...
Aroa Biosurgery Lifts FY26 Revenue 23% and Targets Further Growth With Higher FY27 Investment
May 26, 2026
Aroa Biosurgery reported FY26 total revenue of NZ$103.9 million, up 23% year on year and ahead of guidance on a constant currency basis, driven by strong 54% growth in Myriad product revenue to NZ$49.5 million and solid OviTex and OviTex PRS reven...
Aroa Biosurgery Beats FY26 Guidance on Strong Myriad Sales and Margin Lift
Apr 29, 2026
Aroa Biosurgery reported preliminary unaudited FY26 results showing total revenue of about NZ$104 million on an actual basis, or NZ$101 million in constant currency, surpassing its guidance range and representing 21% growth on the prior year, driv...
Aroa Biosurgery Seeks ASX Quotation for New Share Issue
Apr 10, 2026
Aroa Biosurgery Ltd has applied to the ASX for quotation of 426,457 new fully paid ordinary shares, issued on 9 April 2026 following the exercise or conversion of existing options or other convertible securities. The additional shares will be list...
Aroa Biosurgery Flags Lapse and Expiry of Equity Incentives, Trimming Potential Dilution
Apr 9, 2026
Aroa Biosurgery has notified the market of the cessation of several classes of equity-based incentives, including restricted stock units, options and performance rights. The instruments, covering a combined 336,541 potential securities, lapsed or ...
Aroa Biosurgery’s Symphony Trial Hits Key Endpoint in Diabetic Foot Ulcers
Mar 29, 2026
Aroa Biosurgery has completed a multi-centre randomised controlled trial of its Symphony skin substitute in patients with chronic Wagner grade 1 and 2 diabetic foot ulcers, comparing the product to standard care over a 12-week period. Preliminary ...
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.