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1. Company Snapshot

1.a. Company Description

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.It offers products and solutions for patient handling, hygiene, disinfection, medical beds, treatment and prevention of pressure injuries and leg ulcers, prevention of deep vein thrombosis, treatment of edema, and for obstetric and cardiac diagnostics.The company also provides dementia and bariatric room assessment solutions, as well as clinical consulting, maintenance, and equipment rental and financing solutions.


It serves private and public institutions that provide acute and long-term care.The company was founded in 1957 and is headquartered in Malmö, Sweden.

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1.b. Last Insights on ARJO

Arjo AB's recent performance was hindered by currency headwinds, which eroded the company's revenue growth. Despite robust organic sales growth, the adverse impact of currency fluctuations offset some of the gains. Additionally, increased operational costs further weighed on the company's bottom line. The company's ability to launch new products was a mitigating factor, but it was not enough to fully compensate for the challenges faced.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Arjo AB (FRA:A39) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Global Challenges

Jul -12

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Arjo AB (STU:A39) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid Currency Challenges

Apr -30

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Arjo AB (FRA:A39) Q4 2024 Earnings Call Highlights: Strong North American Growth and Strategic ...

Jan -31

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.77%)

6. Segments

Global

Expected Growth: 3.0%

Arjo AB's 3.0% global growth is driven by increasing demand for healthcare services, an aging population, and a growing need for medical devices. Expansion in emerging markets, strategic acquisitions, and innovative product launches also contribute to growth. Furthermore, the company's focus on patient handling and hygiene solutions, as well as its commitment to improving healthcare efficiency, support its growth momentum.

North America

Expected Growth: 2.5%

Arjo AB's 2.5% growth in North America is driven by increasing demand for medical devices and solutions, particularly in the areas of wound care and patient handling. The region's aging population, rising healthcare expenditure, and growing need for efficient healthcare solutions also contribute to this growth.

Other

Expected Growth: 2.0%

Arjo AB's 2.0% growth in the 'Other' segment is driven by increasing demand for medical devices and solutions, particularly in the areas of wound care and hygiene. Additionally, strategic acquisitions and partnerships have expanded the company's product portfolio and geographic reach, contributing to revenue growth.

Eliminations

Expected Growth: 0.0%

Arjo AB (publ) reports zero growth in eliminations, indicating a stable consolidation of intercompany transactions. This is likely due to efficient internal processes, minimal changes in group structure, and effective management of intersegment sales and purchases, resulting in no material eliminations required.

7. Detailed Products

Patient Handling

Arjo's patient handling solutions provide safe and efficient transfer, mobilization, and care of patients, reducing the risk of injury to both patients and caregivers.

Hygiene Systems

Arjo's hygiene systems provide a comprehensive range of solutions for infection prevention, including showering, bathing, and hygiene chairs.

Wound Healing

Arjo's wound healing solutions provide advanced therapies for wound care, including negative pressure wound therapy and compression therapy.

Disinfection and Sterilization

Arjo's disinfection and sterilization solutions provide effective and efficient methods for disinfecting and sterilizing medical equipment and surfaces.

Medical Beds and Stretchers

Arjo's medical beds and stretchers provide comfortable and safe solutions for patient care, transportation, and recovery.

8. Arjo AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Arjo AB (publ) operates in the medical technology industry, which is characterized by a moderate threat of substitutes. While there are alternative products and services available, they are not perfect substitutes, and Arjo's products and services have a unique value proposition.

Bargaining Power Of Customers

Arjo AB (publ) has a diverse customer base, including hospitals, clinics, and healthcare systems. While customers have some bargaining power, Arjo's products and services are often critical to their operations, reducing their bargaining power.

Bargaining Power Of Suppliers

Arjo AB (publ) relies on a network of suppliers for raw materials, components, and services. While suppliers have some bargaining power, Arjo's scale and negotiating power mitigate this risk.

Threat Of New Entrants

The medical technology industry has high barriers to entry, including regulatory hurdles, high research and development costs, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The medical technology industry is highly competitive, with several established players competing for market share. Arjo AB (publ) faces intense competition from rivals, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.23%
Debt Cost 5.50%
Equity Weight 61.77%
Equity Cost 5.50%
WACC 5.50%
Leverage 61.88%

11. Quality Control: Arjo AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Faes Farma

A-Score: 7.4/10

Value: 5.2

Growth: 5.9

Quality: 8.2

Yield: 8.1

Momentum: 8.0

Volatility: 9.0

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Clínica Baviera

A-Score: 6.9/10

Value: 4.1

Growth: 8.2

Quality: 8.4

Yield: 7.5

Momentum: 7.0

Volatility: 6.3

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Ambea

A-Score: 6.1/10

Value: 6.3

Growth: 7.7

Quality: 4.7

Yield: 3.8

Momentum: 9.0

Volatility: 5.0

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Synektik

A-Score: 5.9/10

Value: 1.8

Growth: 9.8

Quality: 7.5

Yield: 5.0

Momentum: 8.5

Volatility: 3.0

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Uniphar

A-Score: 5.2/10

Value: 4.3

Growth: 5.7

Quality: 3.4

Yield: 1.2

Momentum: 9.5

Volatility: 7.0

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Arjo

A-Score: 4.5/10

Value: 7.3

Growth: 3.8

Quality: 5.6

Yield: 3.8

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.8$

Current Price

31.8$

Potential

-0.00%

Expected Cash-Flows