OM:ARJO B

Stock Analysis Report

Executive Summary

Arjo AB (publ) develops and sells medical devices and solutions for patients with reduced mobility and age-related health challenges in North America, Western Europe, and internationally.


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Arjo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARJO B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

ARJO B

8.8%

SE Medical Equipment

7.4%

SE Market


1 Year Return

47.6%

ARJO B

14.8%

SE Medical Equipment

-8.2%

SE Market

Return vs Industry: ARJO B exceeded the Swedish Medical Equipment industry which returned 14.8% over the past year.

Return vs Market: ARJO B exceeded the Swedish Market which returned -8.2% over the past year.


Shareholder returns

ARJO BIndustryMarket
7 Day-4.2%8.8%7.4%
30 Day1.8%-1.0%-14.3%
90 Day9.7%-11.4%-19.4%
1 Year49.8%47.6%16.7%14.8%-5.5%-8.2%
3 Yearn/a36.7%20.8%4.9%-10.6%
5 Yearn/a29.6%6.5%11.9%-11.6%

Price Volatility Vs. Market

How volatile is Arjo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

21.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARJO B (SEK49.44) is trading below our estimate of fair value (SEK62.78)

Significantly Below Fair Value: ARJO B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARJO B is good value based on its PE Ratio (33.4x) compared to the Medical Equipment industry average (50.7x).

PE vs Market: ARJO B is poor value based on its PE Ratio (33.4x) compared to the Swedish market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: ARJO B is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ARJO B is good value based on its PB Ratio (2.3x) compared to the SE Medical Equipment industry average (3.6x).


Next Steps

Future Growth

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

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARJO B's forecast earnings growth (21.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: ARJO B's earnings (21.3% per year) are forecast to grow faster than the Swedish market (7.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARJO B's revenue (4.3% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: ARJO B's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARJO B's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Arjo performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARJO B has high quality earnings.

Growing Profit Margin: ARJO B's current net profit margins (4.5%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: ARJO B's earnings have declined by -14% per year over the past 5 years.

Accelerating Growth: ARJO B's earnings growth over the past year (36.1%) exceeds its 5-year average (-14% per year).

Earnings vs Industry: ARJO B earnings growth over the past year (36.1%) exceeded the Medical Equipment industry 12.6%.


Return on Equity

High ROE: ARJO B's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Arjo's financial position?


Financial Position Analysis

Short Term Liabilities: ARJO B's short term assets (SEK4.4B) do not cover its short term liabilities (SEK4.4B).

Long Term Liabilities: ARJO B's short term assets (SEK4.4B) exceed its long term liabilities (SEK4.1B).


Debt to Equity History and Analysis

Debt Level: ARJO B's debt to equity ratio (93.1%) is considered high.

Reducing Debt: ARJO B's debt to equity ratio has increased from 18.3% to 93.1% over the past 5 years.

Debt Coverage: ARJO B's debt is well covered by operating cash flow (22.7%).

Interest Coverage: ARJO B's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet

Inventory Level: ARJO B has a high level of physical assets or inventory.

Debt Coverage by Assets: ARJO B's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Arjo's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ARJO B's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.99%).

High Dividend: ARJO B's dividend (1.31%) is low compared to the top 25% of dividend payers in the Swedish market (6.15%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ARJO B has been paying a dividend for less than 10 years.

Growing Dividend: ARJO B's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.9%), ARJO B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARJO B's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Joacim Lindoff (46yo)

3.17s

Tenure

Mr. Joacim Lindoff, M.Sc. (Economics), has been the Chief Executive Officer and President at Arjo AB (publ). since 2017. He was President of Patient & Post-Acute Care at Getinge AB and wasa aslo its Acti ...


Leadership Team

NamePositionTenureCompensationOwnership
Joacim Lindoff
CEO, President & Director3.17yrsno data0.0061% SEK820.1k
Daniel Fäldt
Chief Financial Officerno datano datano data
Mikael Persson
Executive Vice President of Product Development3.17yrsno data0.021% SEK2.8m
Saloni Deva
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Ingrid Carlsson
Executive VP of Legal & Business Compliance and Board Secretary0.17yrno datano data
Marion Gullstrand
Executive Vice President of Human Resources & Sustainability3.17yrsno datano data
Katarzyna Bobrow
Executive Vice President of Quality & Regulatory Compliance3.17yrsno datano data
Christian Stentoft
Executive VP & Chief Strategy Officer3.17yrsno datano data
Kornelia Rasmussen
Executive Vice President of Marketing Communication & Public Relationsno datano data0.0016% SEK222.2k
Anne Sigouin
President of Sales & Service North America3.17yrsno datano data

3.2yrs

Average Tenure

43yo

Average Age

Experienced Management: ARJO B's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joacim Lindoff
CEO, President & Director3.17yrsno data0.0061% SEK820.1k
Ulf Grunander
Director3.17yrskr815.00k0.031% SEK4.1m
Carl Bennet
Vice Chairman2.17yrskr667.00kno data
Johan Malmquist
Chairman of the Board3.17yrskr1.28m0.037% SEK4.9m
Eva Elmstedt
Independent Director2.58yrskr695.00k0.0073% SEK988.4k
Carola Lemne
Independent Director3.17yrskr695.00k0.0011% SEK148.1k
Sten Börjesson
Employee Representative Director3.17yrsno datano data
Ingrid Hultgren
Employee Representative Director3.17yrsno data0.0015% SEK197.9k
Kajsa Haraldsson
Deputy Board Member3.17yrsno datano data
Dan Frohm
Director0.83yrno datano data

3.2yrs

Average Tenure

59yo

Average Age

Experienced Board: ARJO B's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARJO B insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Arjo AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arjo AB (publ)
  • Ticker: ARJO B
  • Exchange: OM
  • Founded: 1957
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr13.466b
  • Shares outstanding: 272.37m
  • Website: https://www.arjo.com

Number of Employees


Location

  • Arjo AB (publ)
  • Hans Michelsensgatan 10
  • Malmo
  • Skåne County
  • 211 20
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARJO BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKDec 2017
ARJOBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKDec 2017
0HQ8LSE (London Stock Exchange)YesClass B SharesGBSEKDec 2017
ARRJ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDDec 2017
A39DB (Deutsche Boerse AG)YesClass B SharesDEEURDec 2017

Biography

Arjo AB (publ) develops and sells medical devices and solutions for patients with reduced mobility and age-related health challenges in North America, Western Europe, and internationally. The company offers products and solutions for patient handling, hygiene, disinfection, hospital beds, prevention of pressure ulcers, prevention of deep vein thrombosis, and for obstetric and cardiac diagnostics. It also provides services, such as training in connection with product sales. Arjo AB (publ) serves private and public institutions that provide acute and long-term care. The company was founded in 1957 and is headquartered in Malmo, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:59
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.