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Arjo AB
(ARJO.B)
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Rating:66Neutral
Price Target:
kr36.00
▲(27.39% Upside)
Action:Reiterated
Date:10/24/26
The score is driven primarily by solid financial stability and improving cash flow, reinforced by a constructive earnings update featuring organic growth, margin improvement, and a clear EBIT-improvement plan. These positives are moderated by compressed profitability/ROE versus prior years, a technically overbought setup, and a relatively demanding valuation (P/E ~25.4) with only moderate dividend support.
Positive Factors
Structural Care Demand
Underlying demand is supported by a growing number of patients requiring care, which can make Arjo’s products relevant across economic cycles. This structural need, combined with its focus on acute and long-term care, supports durable market opportunity and recurring replacement and service demand.
Negative Factors
Compressed Profitability
Profitability remains materially below prior years, limiting the earnings produced from Arjo’s revenue base and equity capital. Lower margins can reduce resilience to cost inflation or pricing pressure, while modest ROE suggests the company is not yet converting its capital base into returns as efficiently as before.
Read all positive and negative factors
Positive Factors
Negative Factors
Structural Care Demand
Underlying demand is supported by a growing number of patients requiring care, which can make Arjo’s products relevant across economic cycles. This structural need, combined with its focus on acute and long-term care, supports durable market opportunity and recurring replacement and service demand.
Read all positive factors
Arjo AB (ARJO.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr9.15B
Dividend Yield2.83%
Average Volume (3M)469.44K
Price to Earnings (P/E)25.3
Beta (1Y)0.49
Revenue Growth-0.50%
EPS Growth-17.58%
CountrySE
Employees7,000
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)1.33
Shares Outstanding254,152,370
10 Day Avg. Volume782,926
30 Day Avg. Volume469,443
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.17
Price to Sales (P/S)0.79
P/FCF Ratio11.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr39.00Price Target Upside38.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.74
Revenue Forecast (FY)kr11.32B
Arjo AB Business Overview & Revenue Model
Company Description
Arjo AB (publ) is a global leader in providing medical devices and innovative solutions tailored for patients experiencing limited mobility and age-related health conditions. Operating across North America, Western Europe, and other international ...
How the Company Makes Money
Arjo makes money primarily by selling and servicing medical devices and care equipment to healthcare providers (such as hospitals, nursing homes, and other care institutions), typically through a combination of direct sales and distributor channel...
Arjo AB Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, supported by 6% organic growth, stronger gross profit and adjusted EBIT, improved reported margins, higher operating cash flow, and lower leverage. Management also highlighted strong momentum in patient handling, North America, and Europe, along with a SEK 350 million EBIT improvement plan. Offsetting issues included higher restructuring costs, weaker quarterly performance in international and distributor-led markets, less favorable working capital, negative investment cash flow, revaluation losses, and uncertainty around the flu season's effect on the fourth quarter.Positive Updates
Solid Organic Growth
Arjo delivered 6% organic growth in Q3, with positive development throughout all three months of the quarter and momentum carried over from the strong finish to Q2.
Negative Updates
International and Distributor-Led Markets Lagged in the Quarter
International and distributor-led markets did not deliver similarly strong growth during the quarter, although management said they were performing well year-to-date.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Organic Growth
Arjo delivered 6% organic growth in Q3, with positive development throughout all three months of the quarter and momentum carried over from the strong finish to Q2.
Read all positive updates
Company Guidance
Arjo reiterated a SEK 350 million commitment of profit improvements until H1 2029, described as a SEK 350 million profit improvement it believes it will be able to deliver by mid-2029, with the improvement being EBIT improvement; restructuring costs were “conservatively mentioned,” the company hopes it “will not need all of this,” and “the majority will happen largely over the coming 18 months.” Arjo will report progress every quarter, present new financial targets during Q1 2027, publish the year-end report at the end of January, and report Q1 in April 2027.Arjo AB Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
68
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.12B | 11.00B | 11.29B | 10.98B | 9.98B | 9.07B |
| Gross Profit | 4.35B | 4.32B | 4.91B | 4.74B | 4.21B | 4.21B |
| EBITDA | 1.87B | 1.81B | 2.03B | 1.97B | 1.70B | 2.03B |
| Net Income | 361.00M | 334.00M | 498.00M | 480.00M | 449.00M | 742.00M |
Balance Sheet | ||||||
| Total Assets | 15.95B | 14.98B | 16.28B | 16.00B | 16.17B | 14.61B |
| Cash, Cash Equivalents and Short-Term Investments | 858.00M | 836.00M | 892.00M | 923.00M | 949.00M | 757.00M |
| Total Debt | 5.35B | 5.35B | 5.42B | 5.49B | 6.31B | 5.45B |
| Total Liabilities | 7.92B | 7.52B | 7.94B | 8.42B | 8.54B | 7.73B |
| Stockholders Equity | 8.03B | 7.46B | 8.34B | 7.58B | 7.62B | 6.88B |
Cash Flow | ||||||
| Free Cash Flow | 970.00M | 757.00M | 838.00M | 1.38B | 15.00M | 974.00M |
| Operating Cash Flow | 1.58B | 1.44B | 1.52B | 2.06B | 915.00M | 1.73B |
| Investing Cash Flow | -677.00M | -705.00M | -635.00M | -638.00M | -902.00M | -695.00M |
| Financing Cash Flow | -809.00M | -730.00M | -907.00M | -1.43B | 136.00M | -1.28B |
Arjo AB Technical Analysis
Positive
28.26
Price Trends
28.40
Positive
27.30
Positive
26.45
Positive
Market Momentum
1.33
Negative
79.99
Negative
95.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ARJO.B, the sentiment is Positive. The current price of 28.26 is below the 20-day moving average (MA) of 28.65, below the 50-day MA of 28.40, and above the 200-day MA of 26.45, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 79.99 is Negative, neither overbought nor oversold. The STOCH value of 95.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ARJO.B.
Arjo AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | kr22.11B | 34.47 | 11.32% | 0.83% | 1.62% | 63.45% | |
66 Neutral | kr9.15B | 25.26 | 4.65% | 2.83% | -0.50% | -17.58% | |
64 Neutral | kr6.36B | 49.39 | 5.89% | ― | 17.83% | 330.94% | |
57 Neutral | kr27.13B | 39.72 | ― | 0.55% | ― | ― | |
53 Neutral | kr541.43M | 85.83 | 1.93% | ― | -0.51% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | kr979.46M | -28.38 | -3.88% | ― | 0.42% | 15.03% |
* Healthcare Sector Average
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Arjo AB Corporate Events
Arjo Delivers Solid Q3 Growth and Unveils Profitability-Boosting Strategy
Oct 22, 2026
Arjo reported solid third-quarter performance, with net sales rising to SEK 2,849 million and organic growth of 6.0%, supported by improved gross margin and higher adjusted EBITDA and operating profit. North America and Europe delivered more than ...
Arjo Reshapes Geographic Segments to Align Reporting With New Operating Model
Oct 20, 2026
Arjo, a global provider of medical equipment and mobility-focused care solutions, designs products that support patient transfers, hygiene, disinfection, diagnostics, leg ulcer treatment, pressure injury and deep vein thrombosis prevention, and me...
Arjo Sets October 22 Date for Q3 2026 Report and Investor Call
Oct 8, 2026
Healthcare equipment specialist Arjo, which employs around 7,000 people globally and has more than 65 years of experience, provides a broad range of solutions that support safe, dignified care and better outcomes for patients with mobility issues....
Arjo Launches New Strategy With 350 MSEK EBIT Improvement Target
Sep 24, 2026
Arjo AB, a global provider of healthcare equipment and mobility-focused care solutions such as patient transfer systems, hygiene and disinfection products, diagnostic tools, leg ulcer treatments and medical beds, is leveraging its nearly 70-year h...
Arjo Names Polestar Executive Lisa Ekelund as New CFO
Sep 11, 2026
Arjo has appointed Lisa Ekelund as its new Chief Financial Officer and member of the Group management team, succeeding long-serving CFO Christofer Carlsson, who will depart in early 2027. Ekelund, currently CFO of Polestar Nordics and a board memb...
Arjo Sets Capital Markets Day to Outline Profitability and Strategy Plans
Sep 1, 2026
Arjo will host a Capital Markets Day for analysts, institutional investors, and media at Epicenter in central Stockholm on September 24, 2026, with the event also streamed live. Presentations will run from 09:00 to 11:30 CEST, be held in English, ...
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.