Paxman AB (PAX) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 100.37K
• Price to Earnings (P/E): 142.1
• Beta (1Y): 0.27
• Revenue Growth: 14.28%
• EPS Growth: -68.33%
• Country: SE
• Employees: 105
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 23,273,417
• 10 Day Avg. Volume: 41,338
• 30 Day Avg. Volume: 100,373
• PEG Ratio: 0.08
• Price to Book (P/B): 7.61
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 78.00
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 6.07
• Enterprise Value/Gross Profit: 8.89
• Enterprise Value/Ebitda: 36.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: kr65.00 ▼(-4.69% Downside)

Paxman AB's strong financial performance is offset by bearish technical indicators and high valuation concerns. The company's robust balance sheet and revenue growth are positive, but the stock's current market momentum and high P/E ratio suggest caution. Improving cash flow management could enhance future prospects.

Paxman AB Business Overview & Revenue Model

Company Description

Paxman AB (PAX) is a Swedish medical technology company specializing in the development of innovative solutions for scalp cooling in oncology treatments. Primarily focused on the healthcare sector, Paxman aims to reduce chemotherapy-induced hair loss for cancer patients through its proprietary scalp cooling system, which is designed to maintain the temperature of the scalp, thereby minimizing the impact of chemotherapy on hair follicles. The company's core products include the Paxman Scalp Cooling System, which is used in hospitals and clinics worldwide.

How the Company Makes Money

Paxman AB generates revenue primarily through the sale and leasing of its scalp cooling systems to hospitals and outpatient clinics. The company employs a dual revenue model that includes direct sales of equipment and recurring revenue from the sale of consumables, such as cooling caps, which are integral to the system's operation. Additionally, Paxman may receive revenue from service contracts for the maintenance and support of their equipment. Significant partnerships with healthcare providers and oncology clinics enhance Paxman's market reach and contribute to its earnings by facilitating wide adoption of its technology in cancer care.

Paxman AB Financial Statement Overview

Summary

Paxman AB demonstrates strong revenue growth and improved profitability with a healthy gross profit margin. The balance sheet is robust with low leverage, enhancing financial stability. However, the decline in free cash flow poses a potential risk to future investments and liquidity.

Income Statement

Paxman AB has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 4.38% and a significant increase from previous years. The gross profit margin is healthy at 55.58% TTM, although it has decreased from previous periods. The net profit margin has improved to 8.22% TTM, indicating better profitability. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.03 TTM, indicating minimal leverage and financial risk. The return on equity is strong at 11.67% TTM, reflecting efficient use of equity to generate profits. The equity ratio is solid, showing a stable financial position with a significant portion of assets financed by equity.

Cash Flow

While operating cash flow remains positive, the free cash flow has seen a significant decline of 76.93% TTM, which could be a concern for future investments and liquidity. The operating cash flow to net income ratio is 0.89, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.96M	253.01M	210.12M	156.75M	96.20M	78.05M
Gross Profit	186.38M	175.42M	146.42M	101.44M	64.52M	50.69M
EBITDA	45.37M	49.73M	31.23M	16.18M	2.90M	-1.04M
Net Income	8.56M	40.20M	8.33M	-10.32M	-12.78M	-19.19M
Balance Sheet
Total Assets	498.91M	227.23M	167.12M	173.96M	166.34M	77.01M
Cash, Cash Equivalents and Short-Term Investments	149.28M	40.31M	24.98M	38.09M	72.27M	3.58M
Total Debt	17.85M	14.29M	13.57M	16.98M	17.15M	48.23M
Total Liabilities	73.23M	63.24M	44.51M	59.76M	40.59M	66.12M
Stockholders Equity	425.82M	163.99M	122.62M	114.20M	125.75M	10.89M
Cash Flow
Free Cash Flow	3.64M	15.99M	-9.70M	-33.01M	-27.94M	-14.80M
Operating Cash Flow	23.41M	39.10M	15.63M	2.69M	-4.14M	-8.48M
Investing Cash Flow	-19.82M	-24.50M	-25.33M	-36.69M	-24.45M	-6.32M
Financing Cash Flow	114.63M	721.00K	-3.41M	-169.00K	97.28M	16.78M

Paxman AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 68.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 68.2 is above the 20-day moving average (MA) of 66.10, below the 50-day MA of 70.64, and below the 200-day MA of 72.75, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 77.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:PAX.

Paxman AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	―	€1.11B	43.19	6.93%	―	-5.80%	-65.99%
PAX	―	$1.58B	142.11	2.64%	―	14.28%	-68.33%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OSSD	―	kr1.44B	―	―	―	36.23%	63.14%
BRAIN	―	€201.70M	―	-27.22%	―	16.38%	35.72%
SEZI	―	$932.29M	-6.14	-36.55%	―	62.24%	21.16%
SEDANA	―	€1.05B	-25.90	-4.42%	―	13.48%	28.98%

Paxman AB Corporate Events

Paxman AB Reports Growth Amid Dignitana Merger

Paxman AB is a company specializing in medical devices, particularly in the scalp cooling sector, which helps mitigate hair loss during chemotherapy treatments. The company recently released its second-quarter earnings report for 2025, highlighting significant developments and financial performance. In the latest quarter, Paxman reported a 17% increase in sales, reaching 74.9 MSEK, partly due to the acquisition of Dignitana, a former competitor. However, the company faced a net loss of 3.3 MSEK, influenced by restructuring costs and currency losses. The merger with Dignitana has brought operational synergies and expanded Paxman’s market presence, especially in the U.S., where insurance coverage for scalp cooling is expected to grow. Looking ahead, Paxman is optimistic about achieving increased profitability through strategic integration and expansion efforts, with a focus on enhancing patient access to its treatments.