OTCPK:ARRJ.F

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

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

0%

OTCPK:ARRJ.F

0.5%

US Medical Equipment

-0.02%

US Market


1 Year Return

n/a

OTCPK:ARRJ.F

9.9%

US Medical Equipment

1.6%

US Market

No trading data on ARRJ.F.

No trading data on ARRJ.F.


Share holder returns

ARRJ.FIndustryMarket
7 Day0%0.5%-0.02%
30 Day-10.5%0.09%2.7%
90 Dayn/a2.0%1.4%
1 Yearn/a10.8%9.9%3.8%1.6%
3 Yearn/a69.0%63.9%45.2%35.8%
5 Yearn/a136.2%109.3%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

8%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Arjo's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Arjo's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Arjo is good value based on earnings compared to the US Medical Equipment industry average.

Arjo is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Arjo is poor value based on expected growth next year.


Price Based on Value of Assets

Arjo is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

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

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Arjo's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Arjo's earnings are expected to grow significantly at over 20% yearly.

Arjo's revenue growth is positive but not above the United States of America market average.

Arjo's earnings growth is expected to exceed the United States of America market average.

Arjo's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Arjo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Arjo performed over the past 5 years?

-26.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arjo's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Arjo's 1-year earnings growth exceeds its 5-year average (11700% vs -26.7%)

Arjo's earnings growth has exceeded the US Medical Equipment industry average in the past year (11700% vs 28.2%).


Return on Equity

Arjo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Arjo used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Arjo's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Arjo's financial position?


Financial Position Analysis

Arjo's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Arjo's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Arjo's level of debt (102.8%) compared to net worth is high (greater than 40%).

Unable to establish if Arjo's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (16.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Arjo's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Arjo's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

It is too early to tell whether Arjo has stable dividend payments.

Arjo only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).


Next Steps

Management

What is the CEO of Arjo's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Joacim Lindoff (46yo)

2.7yrs

Tenure

0

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 ...


Management Age and Tenure

2.7yrs

Average Tenure

50yo

Average Age

The tenure for the Arjo management team is about average.


Board Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

The average tenure for the Arjo board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Arjo individual insiders in the past 3 months.


Recent Insider Transactions

Buykr52,29429 Jul 19
Joacim Lindoff
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares13,160
Max Pricekr3.97
Buykr35,86721 May 19
Eva Elmstedt
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,000
Max Pricekr3.99
Buykr3,41204 Feb 19
Kornelia Rasmussen
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Marketing Communication & Public Relations
Shares1,000
Max Pricekr3.41
Buykr4,72523 Oct 18
Kornelia Rasmussen
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Marketing Communication & Public Relations
Shares1,500
Max Pricekr3.15

Ownership Breakdown


Management Team

  • Jonas Lindqvist (57yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
  • Mikael Persson (52yo)

    Executive Vice President of Product Development

    • Tenure: 2.7yrs
  • Paul Lyon (57yo)

    President Global Sales & Service

    • Tenure: 2.7yrs
  • Kornelia Rasmussen (42yo)

    Executive Vice President of Marketing Communication & Public Relations

    • Tenure: 0yrs
  • Joacim Lindoff (46yo)

    CEO, President & Director

    • Tenure: 2.7yrs
  • Saloni Deva

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Anne Sigouin (50yo)

    President of Sales & Service North America

    • Tenure: 2.7yrs
  • Marion Gullstrand (62yo)

    Executive Vice President of Human Resources & Sustainability

    • Tenure: 2.7yrs
  • Katarzyna Bobrow (39yo)

    Executive Vice President of Quality & Regulatory Compliance

    • Tenure: 2.7yrs
  • Christian Stentoft (35yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 2.7yrs

Board Members

  • Ulf Grunander (65yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: kr815.00k
  • Carl Bennet (68yo)

    Vice Chairman

    • Tenure: 1.7yrs
    • Compensation: kr667.00k
  • Johan Malmquist (58yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: kr1.28m
  • Eva Elmstedt (59yo)

    Director

    • Tenure: 2.1yrs
    • Compensation: kr695.00k
  • Carola Lemne (61yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: kr695.00k
  • Sten Börjesson (52yo)

    Employee Representative Director

    • Tenure: 2.7yrs
  • Joacim Lindoff (46yo)

    CEO, President & Director

    • Tenure: 2.7yrs
  • Ingrid Hultgren (61yo)

    Employee Representative Director

    • Tenure: 2.7yrs
  • Kajsa Haraldsson (37yo)

    Deputy Board Member

    • Tenure: 2.7yrs
  • Dan Frohm

    Director

    • Tenure: 0.3yrs

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: kr10.617b
  • Listing Market Cap: kr1.095b
  • 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 offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:42
End of Day Share Price2019/08/30 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.