OTCPK:ARRJ.F

Stock Analysis Report

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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. More Details


Snowflake Analysis

Solid track record with moderate 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: ARRJ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ARRJ.F

-3.8%

US Medical Equipment

-2.4%

US Market


1 Year Return

n/a

ARRJ.F

14.0%

US Medical Equipment

12.0%

US Market

Return vs Industry: Insufficient data to determine how ARRJ.F performed against the US Medical Equipment industry.

Return vs Market: Insufficient data to determine how ARRJ.F performed against the US Market.


Shareholder returns

ARRJ.FIndustryMarket
7 Day0%-3.8%-2.4%
30 Day-2.1%-3.7%-6.5%
90 Dayn/a11.0%8.4%
1 Yearn/a15.0%14.0%14.5%12.0%
3 Yearn/a66.4%62.1%34.8%25.8%
5 Yearn/a134.4%116.6%82.1%61.6%

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

No news available

Valuation

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

35.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARRJ.F ($5.68) is trading above our estimate of fair value ($4.42)

Significantly Below Fair Value: ARRJ.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARRJ.F is good value based on its PE Ratio (34x) compared to the US Medical Equipment industry average (48.8x).

PE vs Market: ARRJ.F is poor value based on its PE Ratio (34x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ARRJ.F is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ARRJ.F is good value based on its PB Ratio (2.5x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARRJ.F's forecast earnings growth (23.7% per year) is above the savings rate (2.2%).

Earnings vs Market: ARRJ.F's earnings (23.7% per year) are forecast to grow faster than the US market (23% per year).

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

Revenue vs Market: ARRJ.F's revenue (4.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ARRJ.F's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARRJ.F'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?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARRJ.F has high quality earnings.

Growing Profit Margin: ARRJ.F's current net profit margins (4.6%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: ARRJ.F's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: ARRJ.F's earnings growth over the past year (19.5%) exceeds its 5-year average (11% per year).

Earnings vs Industry: ARRJ.F earnings growth over the past year (19.5%) exceeded the Medical Equipment industry 1.8%.


Return on Equity

High ROE: ARRJ.F's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Arjo's financial position?


Financial Position Analysis

Short Term Liabilities: ARRJ.F's short term assets (SEK4.7B) exceed its short term liabilities (SEK3.9B).

Long Term Liabilities: ARRJ.F's short term assets (SEK4.7B) do not cover its long term liabilities (SEK5.1B).


Debt to Equity History and Analysis

Debt Level: ARRJ.F's debt to equity ratio (99.7%) is considered high.

Reducing Debt: ARRJ.F's debt to equity ratio has increased from 17.7% to 99.7% over the past 5 years.

Debt Coverage: ARRJ.F's debt is well covered by operating cash flow (30.2%).

Interest Coverage: ARRJ.F's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARRJ.F's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: ARRJ.F's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (5.03%).


Stability and Growth of Payments

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

Growing Dividend: ARRJ.F'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 (41.9%), ARRJ.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARRJ.F's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Joacim Lindoff (47 yo)

3.67yrs

Tenure

kr10,890,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Joacim's total compensation ($USD1.19M) is below average for companies of similar size in the US market ($USD4.65M).

Compensation vs Earnings: Joacim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joacim Lindoff
CEO, President & Director3.67yrskr10.89m0.0061%
SEK 99.0k
Daniel Fäldt
Chief Financial Officer0.50yrno data0.0037%
SEK 59.7k
Mikael Persson
Executive Vice President of Product Development3.67yrsno data0.021%
SEK 342.3k
Maria Nilsson
Vice President of Investor Relations & Corporate Communications0.42yrno datano data
Ingrid Carlsson
Executive VP of Legal & Business Compliance and Board Secretary0.67yrno datano data
Kornelia Rasmussen
Executive Vice President of Marketing Communication & Public Relationsno datano data0.0016%
SEK 26.8k
Paul Lyon
President Global Sales & Serviceno datano datano data
Marion Gullstrand
Executive Vice President of Human Resources & CSR3.67yrsno datano data
Katarzyna Bobrow
Executive Vice President of Quality & Regulatory Compliance3.67yrsno datano data
Christian Stentoft
Executive VP & Chief Strategy Officer3.67yrsno datano data
Anne Sigouin
President of Sales & Service North America3.67yrsno datano data

3.7yrs

Average Tenure

45.5yo

Average Age

Experienced Management: ARRJ.F's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joacim Lindoff
CEO, President & Director3.67yrskr10.89m0.0061%
SEK 99.0k
Ulf Grunander
Director3.67yrskr836.00k0.031%
SEK 499.0k
Carl Bennet
Vice Chairman2.67yrskr684.00kno data
Johan Malmquist
Chairman of the Board3.67yrskr1.51m0.037%
SEK 596.7k
Eva Elmstedt
Independent Director3.08yrskr713.00k0.0073%
SEK 119.3k
Carola Lemne
Independent Director3.67yrskr713.00k0.0011%
SEK 17.9k
Sten Börjesson
Employee Representative Director3.67yrsno datano data
Dan Frohm
Director1.33yrskr713.00k0.079%
SEK 1.3m
Ingrid Hultgren
Employee Representative Director3.67yrsno data0.0015%
SEK 23.9k
Kajsa Haraldsson
Deputy Board Member3.67yrsno datano data
Eva Gralén
Deputy Board Member2yrsno datano data

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: ARRJ.F's board of directors are considered experienced (3.7 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 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: ARRJ.F
  • Exchange: OTCPK
  • Founded: 1957
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: kr14.844b
  • Listing Market Cap: kr1.625b
  • Shares outstanding: 272.37m
  • Website: https://www.arjo.com

Number of Employees


Location

  • Arjo AB (publ)
  • Hans Michelsensgatan 10
  • Malmö
  • 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 offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 05:42
End of Day Share Price2020/09/09 00:00
Earnings2020/06/30
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.