ScoreWhy is Arjo AB ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.10% over the last 5 years
2
Flat results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at SEK 1,306 MM
- INTEREST(Q) At SEK 52 MM has Grown at 20.93%
- NET SALES(Q) Lowest at SEK 2,678 MM
3
With ROE of 7.30%, it has a very expensive valuation with a 1.11 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -6.25%, its profits have fallen by -5.2%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.25% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Arjo AB should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Arjo AB for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Arjo AB
-6.25%
-1.10
26.29%
OMX Stockholm 30
8.01%
0.44
18.11%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.10%
EBIT Growth (5y)
0.87%
EBIT to Interest (avg)
6.99
Debt to EBITDA (avg)
2.05
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
0.88
Tax Ratio
27.50%
Dividend Payout Ratio
51.96%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.50%
ROE (avg)
8.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.11
EV to EBIT
12.72
EV to EBITDA
5.98
EV to Capital Employed
1.07
EV to Sales
1.11
PEG Ratio
NA
Dividend Yield
8.76%
ROCE (Latest)
8.41%
ROE (Latest)
7.30%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.64% (YoY
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 1,306 MM
INTEREST(Q)
At SEK 52 MM has Grown at 20.93%
NET SALES(Q)
Lowest at SEK 2,678 MM
Here's what is working for Arjo AB
Raw Material Cost
Fallen by 0.64% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Arjo AB
Interest
At SEK 52 MM has Grown at 20.93%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Operating Cash Flow
Lowest at SEK 1,306 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
Net Sales
Lowest at SEK 2,678 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (SEK MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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