BrainCool AB (BRAIN) AI Stock Analysis

• Market Cap: kr148.66M
• Dividend Yield: N/A
• Average Volume (3M): 201.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 16.38%
• EPS Growth: 35.71%
• Country: SE
• Employees: 20
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 337,854,830
• 10 Day Avg. Volume: 223,544
• 30 Day Avg. Volume: 201,464
• PEG Ratio: 0.19
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 8.69
• P/FCF Ratio: -4.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: kr0.45 ▼(-23.28% Downside)

The score is held back primarily by deep unprofitability and ongoing negative free cash flow despite improving revenue growth and a debt-free balance sheet. Technical indicators also lean bearish with the stock trading below key moving averages and a negative MACD, while valuation is constrained by losses (negative P/E) and no dividend yield support.

Positive Factors

Debt-free balance sheet

Zero reported debt and a sizeable equity base reduce refinancing and interest-rate risk, providing the company durable financial flexibility to fund commercialization, R&D or absorb shocks. This lowers solvency pressure over the next several months while revenue ramps.

Revenue growth momentum

Sustained TTM revenue growth (~14%) signals tangible commercial traction in targeted temperature management. Continued top-line expansion is a durable indicator of market adoption and supports scaling of operations and future margin improvement if growth persists over the coming quarters.

Positive gross margins

A positive gross margin near 28% shows the product portfolio has viable unit economics, implying incremental sales can contribute to covering fixed costs. If operating spend growth is reined in, these structural margins support a credible path to profitability over the medium term.

Negative Factors

Deep operating losses

Very large operating and net losses indicate the business is spending far more than it earns, weakening the pathway to self-sustaining profitability. Persistent negative margins require significant cost reduction or much stronger revenue growth to restore positive operating leverage.

Negative cash flow and cash burn

Consistent negative operating and free cash flow, with FCF deteriorating year-over-year, create an ongoing funding requirement. This structural cash burn increases reliance on external financing or equity raises, posing dilution and execution risk absent sustained improvement in cash generation.

Eroding equity and negative returns

Although equity remains sizeable, the decline and sharply negative ROE show the capital base is being consumed without generating returns. This structural erosion undermines shareholder value and signals that current capital allocation and commercialization scale are not yet delivering profitable growth.

BrainCool AB Business Overview & Revenue Model

Company Description

BrainCool AB (publ), a medical device company, together with its subsidiaries, engages in the development, marketing, and sale of medical cooling systems for the healthcare sector in Sweden. The company offers products for medical cooling treatments for a range of diseases, including stroke, sudden cardiac arrest, oral mucositis, and migraine. It provides BrainCool and RhinoChill systems that facilitates rapid medical cooling treatment in an emergency setting and ensures the continuum of care; Cooral system provides medical professionals an easy way to reduce the risk of oral mucositis; and IQool system offers an easy-to-use intuitive interface, informative graphics, and an automatic feedback loop allowing clinicians to manage their patient rather than a device. The company was incorporated in 2010 and is based in Lund, Sweden.

How the Company Makes Money

BrainCool AB generates revenue primarily through the sale of its medical cooling systems and related accessories to healthcare facilities, including hospitals and emergency medical services. The company may also engage in strategic partnerships with medical institutions and distributors to expand the market reach of its products. Additionally, BrainCool might receive funding from research grants or collaborations aimed at furthering the development and efficacy of its technologies. The company's earnings are influenced by its ability to innovate, secure regulatory approvals, and expand its market presence internationally.

BrainCool AB Financial Statement Overview

Summary

Mixed fundamentals: revenue growth improved (TTM +14.2%) and the balance sheet is a relative strength with zero reported debt, but profitability is still very weak (EBIT margin ~-78%, net margin ~-84%) and cash burn persists with negative operating and free cash flow.

Income Statement

Top-line momentum improved, with revenue up 14.2% in TTM (Trailing-Twelve-Months) versus a low-growth 2024, showing continued commercialization progress. However, profitability remains very weak: TTM (Trailing-Twelve-Months) gross margin is positive (~28%) but operating losses are still large (EBIT margin around -78%) and the company remains deeply unprofitable (net margin around -84%). The multi-year trend shows improving margins versus earlier years, but earnings quality is still constrained by heavy operating spend relative to current revenue.

Balance Sheet

The balance sheet is a clear relative strength: total debt is reported at zero in 2023–TTM (Trailing-Twelve-Months), implying low financial leverage and reduced refinancing risk. Equity remains sizeable (TTM (Trailing-Twelve-Months) equity of ~117M) despite ongoing losses, though it has declined from 2024 levels, signaling burn-driven erosion. Returns on equity remain meaningfully negative (TTM (Trailing-Twelve-Months) roughly -28%), highlighting that the capital base is not yet generating profits.

Cash Flow

Cash generation is weak, with negative operating cash flow and negative free cash flow across all periods shown. TTM (Trailing-Twelve-Months) operating cash outflow improved versus 2024, but free cash flow worsened (TTM (Trailing-Twelve-Months) down ~24.9% year over year), indicating continued funding needs. Free cash flow is still negative even though losses are non-cash heavy in parts (free cash flow is less negative than net income), but the business has not yet demonstrated self-funding operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.81M	39.96M	23.23M	17.59M	9.26M	7.03M
Gross Profit	12.32M	13.13M	12.12M	-46.16M	-48.93M	-36.74M
EBITDA	-29.95M	-34.06M	-49.86M	-35.07M	-32.16M	-30.39M
Net Income	-36.85M	-44.04M	-61.28M	-45.61M	-38.75M	-37.30M
Balance Sheet
Total Assets	139.49M	162.04M	133.28M	133.67M	99.35M	94.28M
Cash, Cash Equivalents and Short-Term Investments	6.86M	31.40M	25.06M	41.21M	13.58M	12.02M
Total Debt	0.00	0.00	0.00	0.00	35.00M	0.00
Total Liabilities	22.26M	16.11M	21.54M	17.44M	54.12M	33.58M
Stockholders Equity	117.23M	145.93M	111.74M	116.23M	45.23M	60.70M
Cash Flow
Free Cash Flow	-44.13M	-70.20M	-67.23M	-53.67M	-35.06M	-46.82M
Operating Cash Flow	-35.67M	-62.64M	-61.16M	-46.27M	-24.25M	-39.25M
Investing Cash Flow	-8.16M	-7.57M	-6.17M	-7.59M	-10.82M	-8.37M
Financing Cash Flow	9.42M	76.80M	50.93M	81.28M	36.39M	46.57M

BrainCool AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BRAIN, the sentiment is Negative. The current price of 0.58 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.55, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 12.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:BRAIN.

BrainCool AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	66 Neutral	kr1.05B	45.07	6.93%	―	-5.80%	-65.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BRAIN	48 Neutral	kr148.66M	-3.13	-27.22%	―	16.38%	35.71%
SEDANA	48 Neutral	kr972.51M	-23.92	-4.42%	―	13.48%	28.98%
MNTC	48 Neutral	kr372.67M	-7.91	-32.96%	―	-0.02%	-85.98%
BACTI.B	46 Neutral	kr520.40M	-24.46	-6.81%	―	-8.10%	62.08%
ACARIX	41 Neutral	kr292.06M	-5.51	-102.17%	―	21.88%	48.86%