company background image
ARX

Aroa BiosurgeryASX:ARX Stock Report

Market Cap

AU$393.1m

7D

0%

1Y

-13.2%

Updated

25 Oct, 2021

Data

Company Financials +
ARX fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

ARX Overview

Aroa Biosurgery Limited, a regenerative medicine company, engages in the developing, manufacturing, and selling of medical devices for wound and tissue repair using extracellular matrix (ECM) technology in the United States and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Aroa Biosurgery
Historical stock prices
Current Share PriceAU$1.15
52 Week HighAU$0.97
52 Week LowAU$1.43
Beta0
1 Month Change8.49%
3 Month Change-2.95%
1 Year Change-13.21%
3 Year Changen/a
5 Year Changen/a
Change since IPO-14.82%

Recent News & Updates

May 26
Here's What Analysts Are Forecasting For Aroa Biosurgery Limited (ASX:ARX) After Its Annual Results

Here's What Analysts Are Forecasting For Aroa Biosurgery Limited (ASX:ARX) After Its Annual Results

Investors in Aroa Biosurgery Limited ( ASX:ARX ) had a good week, as its shares rose 6.2% to close at AU$1.20 following...

Shareholder Returns

ARXAU BiotechsAU Market
7D0%-0.5%0.6%
1Y-13.2%2.5%21.3%

Return vs Industry: ARX underperformed the Australian Biotechs industry which returned 2.5% over the past year.

Return vs Market: ARX underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is ARX's price volatile compared to industry and market?
ARX volatility
ARX Beta0
Industry Beta1.63
Market Beta1

Stable Share Price: ARX is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ARX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007n/aBrian Wardhttps://aroabio.com

Aroa Biosurgery Limited, a regenerative medicine company, engages in the developing, manufacturing, and selling of medical devices for wound and tissue repair using extracellular matrix (ECM) technology in the United States and internationally. Its products include Endoform Natural and Endoform Antimicrobia 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. The company was incorporated in 2007 and is headquartered in Auckland, New Zealand.

Aroa Biosurgery Fundamentals Summary

How do Aroa Biosurgery's earnings and revenue compare to its market cap?
ARX fundamental statistics
Market CapNZ$411.09m
Earnings (TTM)-NZ$19.21m
Revenue (TTM)NZ$22.34m

18.4x

P/S Ratio

-21.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARX income statement (TTM)
RevenueNZ$22.34m
Cost of RevenueNZ$6.82m
Gross ProfitNZ$15.52m
ExpensesNZ$34.73m
Earnings-NZ$19.21m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)-0.056
Gross Margin69.48%
Net Profit Margin-85.98%
Debt/Equity Ratio17.0%

How did ARX perform over the long term?

See historical performance and comparison

Valuation

Is Aroa Biosurgery undervalued compared to its fair value and its price relative to the market?

7.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARX is unprofitable, so we can't compare its PE Ratio to the Global Biotechs industry average.

PE vs Market: ARX is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARX is overvalued based on its PB Ratio (7x) compared to the AU Biotechs industry average (5x).


Future Growth

How is Aroa Biosurgery forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

63.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: ARX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARX's is expected to become profitable in the next 3 years.

Revenue vs Market: ARX's revenue (36.4% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: ARX's revenue (36.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARX is forecast to be unprofitable in 3 years.


Past Performance

How has Aroa Biosurgery performed over the past 5 years?

-222.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ARX is currently unprofitable.

Growing Profit Margin: ARX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ARX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare ARX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (48%).


Return on Equity

High ROE: ARX has a negative Return on Equity (-32.84%), as it is currently unprofitable.


Financial Health

How is Aroa Biosurgery's financial position?


Financial Position Analysis

Short Term Liabilities: ARX's short term assets (NZ$48.7M) exceed its short term liabilities (NZ$15.3M).

Long Term Liabilities: ARX's short term assets (NZ$48.7M) exceed its long term liabilities (NZ$5.9M).


Debt to Equity History and Analysis

Debt Level: ARX's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ARX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ARX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ARX has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 21.8% each year.


Dividend

What is Aroa Biosurgery current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average board tenure


CEO

Brian Ward

no data

Tenure

NZ$1,715,211

Compensation

Dr. Brian Ward, B.V.Sc, MBA(dist) has been Executive Director at Aroa Biosurgery Limited since September 21, 2007 and serves as its Managing Director and Chief Executive Officer. Dr. Ward is founded Mesynt...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD1.23M) is above average for companies of similar size in the Australian market ($USD552.88K).

Compensation vs Earnings: Insufficient data to compare Brian's compensation with company performance.


Board Members

Experienced Board: ARX's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


Top Shareholders

Company Information

Aroa Biosurgery Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Aroa Biosurgery Limited
  • Ticker: ARX
  • Exchange: ASX
  • Founded: 2007
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$393.142m
  • Shares outstanding: 341.86m
  • Website: https://aroabio.com

Number of Employees


Location

  • Aroa Biosurgery Limited
  • 64 Richard Pearse Drive
  • Airport Oaks
  • Auckland
  • 2022
  • New Zealand

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:53
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.