Arjo AB (Sweden) Buy Hold or Sell Recommendation

ARJO-B Stock  SEK 38.68  0.72  1.90%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Arjo AB is 'Strong Buy'. Macroaxis provides Arjo AB buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Arjo AB positions.
  
Check out Arjo AB Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Arjo and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Arjo AB. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Arjo AB Buy or Sell Advice

The Arjo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Arjo AB. Macroaxis does not own or have any residual interests in Arjo AB or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Arjo AB's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Arjo ABBuy Arjo AB
Strong Buy

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Arjo AB has a Risk Adjusted Performance of 0.0967, Jensen Alpha of 0.1468, Total Risk Alpha of 0.3632, Sortino Ratio of 0.2104 and Treynor Ratio of 2.11
Arjo AB advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Arjo AB is not overpriced, please confirm all Arjo AB fundamentals, including its shares owned by insiders, price to earning, and the relationship between the shares outstanding and shares owned by institutions .

Arjo AB Trading Alerts and Improvement Suggestions

Arjo AB has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Arjo AB has accumulated 3.63 B in total debt with debt to equity ratio (D/E) of 123.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Arjo AB has a current ratio of 0.94, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Arjo AB until it has trouble settling it off, either with new capital or with free cash flow. So, Arjo AB's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Arjo AB sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Arjo to invest in growth at high rates of return. When we think about Arjo AB's use of debt, we should always consider it together with cash and equity.
About 21.0% of Arjo AB shares are held by company insiders

Arjo AB Returns Distribution Density

The distribution of Arjo AB's historical returns is an attempt to chart the uncertainty of Arjo AB's future price movements. The chart of the probability distribution of Arjo AB daily returns describes the distribution of returns around its average expected value. We use Arjo AB price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Arjo AB returns is essential to provide solid investment advice for Arjo AB.
Mean Return
0.15
Value At Risk
-2.43
Potential Upside
2.43
Standard Deviation
1.34
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Arjo AB historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Arjo AB Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arjo AB or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arjo AB's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arjo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.15
β
Beta against Dow Jones0.07
σ
Overall volatility
1.35
Ir
Information ratio 0.21

Arjo AB Volatility Alert

Arjo AB has relatively low volatility with skewness of 0.03 and kurtosis of -0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arjo AB's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arjo AB's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Arjo AB Fundamentals Vs Peers

Comparing Arjo AB's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Arjo AB's direct or indirect competition across all of the common fundamentals between Arjo AB and the related equities. This way, we can detect undervalued stocks with similar characteristics as Arjo AB or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Arjo AB's fundamental indicators could also be used in its relative valuation, which is a method of valuing Arjo AB by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Arjo AB to competition
FundamentalsArjo ABPeer Average
Return On Equity0.0616-0.31
Return On Asset0.0335-0.14
Profit Margin0.04 %(1.27) %
Operating Margin0.08 %(5.51) %
Current Valuation12.09 B16.62 B
Shares Outstanding272.37 M571.82 M
Shares Owned By Insiders20.91 %10.09 %
Shares Owned By Institutions48.15 %39.21 %
Price To Earning30.86 X28.72 X
Price To Book1.50 X9.51 X
Price To Sales1.15 X11.42 X
Revenue9.98 B9.43 B
Gross Profit4.21 B27.38 B
EBITDA1.53 B3.9 B
Net Income691 M570.98 M
Cash And Equivalents949 M2.7 B
Cash Per Share3.37 X5.01 X
Total Debt3.63 B5.32 B
Debt To Equity123.00 %48.70 %
Current Ratio0.96 X2.16 X
Book Value Per Share27.99 X1.93 K
Cash Flow From Operations915 M971.22 M
Earnings Per Share1.99 X3.12 X
Target Price56.0
Number Of Employees6.5 K18.84 K
Beta0.22-0.15
Market Capitalization10.79 B19.03 B
Total Asset16.17 B29.47 B
Z Score1.28.72
Annual Yield0.02 %
Net Asset16.17 B
Last Dividend Paid0.85

Arjo AB Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Arjo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Arjo AB Buy or Sell Advice

When is the right time to buy or sell Arjo AB? Buying financial instruments such as Arjo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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In addition to having Arjo AB in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Wholesale Thematic Idea Now

Wholesale
Wholesale Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Wholesale theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wholesale Theme or any other thematic opportunities.
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Other Information on Investing in Arjo Stock

Arjo AB financial ratios help investors to determine whether Arjo Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Arjo with respect to the benefits of owning Arjo AB security.