ARRJF (Arjo AB) Financial Strength: 7 (As of Jun. 2026) — 17% Above Median

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Director of Data and Quant Analytics at GuruFocus
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ARRJF Arjo AB ARRJF
74 GF Score
Price $2.85
GF Value $3.53
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Arjo AB Financial Strength?

Arjo AB ARRJF -0.52% 74 Financial Strength is 7 as of Jun. 2026, which is 17% above its 10-year median of 6.00. GuruFocus rates ARRJF with a GF Score™ of 74/100 and a GF Value™ of $3.53 (Modestly Undervalued). The stock has 5 warning signs investors should review.

Arjo AB has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Arjo AB's Interest Coverage for the quarter that ended in Jun. 2026 was 4.40. Arjo AB's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.41. As of today, Arjo AB's Altman Z-Score is 2.05.


Arjo AB  (OTCPK:ARRJF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Arjo AB has the Financial Strength Rank of 7.


Arjo AB Financial Strength Related Terms


ARRJF vs MCK, COR, CAH: Financial Strength Comparison

For the Medical Distribution subindustry, Arjo AB's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arjo AB Financial Strength vs Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Arjo AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where Arjo AB's Financial Strength falls into.


ARRJF
74GF Score
Arjo AB ARRJF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Arjo AB Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Arjo AB's Interest Expense for the months ended in Jun. 2026 was $-4 Mil. Its Operating Income for the months ended in Jun. 2026 was $22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $273 Mil.

Arjo AB's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*22.10495582528/-4.204
=5.26

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Arjo AB's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(211.19738793055 + 273.39935834844) / 1178.5038284434
=0.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Arjo AB has a Z-score of 2.05, indicating it is in Grey Zones. This implies that Arjo AB is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.05 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
Arjo AB (ARRJF) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Arjo AB and its competitors. This is 17% above median its historical median of 6.00. Over the past decade, Arjo AB's Financial Strength has ranged from 3.00 to 7.00.
Is Arjo AB's Financial Strength too high?
Arjo AB's current Financial Strength of 7 is 17% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Arjo AB has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arjo AB's Financial Strength compare to MCK and COR?
Arjo AB's Financial Strength of 7 can be compared against companies in the Medical Distribution industry. Historically, Arjo AB's own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Medical Distribution company?
A good Financial Strength depends on the Medical Distribution industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Arjo AB and its competitors. Arjo AB's current Financial Strength is 7, which is 17% above median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arjo AB stock overvalued right now?
Based on GuruFocus' analysis, Arjo AB (ARRJF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.53, compared to a current price of $2.85 — trading 19.3% below its estimated fair value. The current Financial Strength is 7, which is 17% above median its 10-year median of 6.00. Arjo AB's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Arjo AB (ARRJF), the current Financial Strength is 7 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Arjo AB (ARRJF) Overvalued in 2026?

Based on GuruFocus' analysis, Arjo AB stock appears to be undervalued. The current stock price of $2.85 is trading 19.3% below its estimated GF Value™ of $3.53. GuruFocus considers Arjo AB to be Modestly Undervalued.

Key valuation signals for ARRJF:

  • Financial Strength: 7 (17% above median its 10-year median of 6.00)
  • GF Value™: $3.53 vs. price of $2.85 (19.3% below fair value)
  • GF Score™: 74/100 with 5 warning signs

No single metric tells the full story. See the ARRJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arjo AB Business Description

Address Hans Michelsensgatan 10, Box 48, Malmo, SWE, SE-201 20
Arjo AB is a supplier of medical devices, services, and solutions in Sweden. It serves its services to private and public institutions with acute care and long-term care. The company's offering includes products and solutions for patient handling, hygiene, disinfection, medical beds, therapeutic surfaces, venous thromboembolism (VTE) prevention and diagnostics. The company includes segments: Global Sales, North America, Diagnostics.
74GF Score

Get the complete analysis for ARRJF

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.85
Price
$3.53
GF Value