CirChem AB (CIRCHE) AI Stock Analysis

• Market Cap: €53.07M
• Dividend Yield: N/A
• Average Volume (3M): 64.80K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 13
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.09
• Shares Outstanding: 40,205,837
• 10 Day Avg. Volume: 121,416
• 30 Day Avg. Volume: 64,798
• PEG Ratio: 1.19
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 5.82
• P/FCF Ratio: -9.35
• 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: 46 Neutral
• Price Target: kr1.00 ▲(17.65% Upside)

CirChem AB's overall stock score is primarily impacted by its financial performance challenges, including persistent net losses and negative cash flows. The technical analysis indicates a bearish trend with oversold conditions, further weighing on the score. While the valuation is moderate, it does not offset the financial and technical weaknesses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for CirChem's recycling solutions, supporting long-term business expansion and stability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing CirChem to invest in growth opportunities without the burden of interest payments.

Strong Gross Profit Margin

A strong gross profit margin reflects effective cost control and operational efficiency, which can sustain profitability as the company scales.

Negative Factors

Persistent Net Losses

Ongoing net losses indicate profitability challenges, which can hinder long-term financial health and limit reinvestment in business growth.

Negative Cash Flow

Negative cash flow from operations suggests CirChem is not generating sufficient cash internally, potentially leading to reliance on external financing.

Reliance on External Financing

Dependence on external financing can be unsustainable and risky, especially if market conditions change, impacting CirChem's ability to secure funds.

CirChem AB Business Overview & Revenue Model

Company Description

CirChem AB (publ) engages in recycling of used solvents in Sweden. It collects and purify used industrial solvents for reuse; and produces other chemical products, such as washer fluid and rubbing alcohol. CirChem AB (publ)was founded in 2013 and is based in Vargon, Sweden.

How the Company Makes Money

CirChem AB generates revenue through multiple streams, primarily by providing chemical recycling services to businesses and municipalities looking to reduce waste and promote sustainability. The company charges fees for its recycling technologies and processes, which convert waste into reusable materials. Additionally, CirChem sells the recycled raw materials produced from its processes to manufacturers, creating a significant revenue stream. The company may also benefit from partnerships with local governments and environmental organizations that fund or subsidize recycling initiatives. Furthermore, CirChem could explore collaborations with corporations seeking to enhance their sustainability practices, thereby driving additional income through consulting and tailored recycling solutions.

CirChem AB Financial Statement Overview

Summary

CirChem AB shows strong revenue growth and efficient cost management at the production level. However, persistent net losses, negative cash flows, and reliance on external financing for cash flow deficiencies present significant challenges. The company benefits from a strong equity position with no current debt, but past leverage risks and low profitability are concerns.

Income Statement

CirChem AB has shown significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company is still operating at a net loss, evidenced by a negative net income and low EBIT and EBITDA margins. The gross profit margin remains strong, indicating efficient cost management at the production level, but overall profitability is challenged by high operating and other expenses.

Balance Sheet

The balance sheet reveals a healthy equity position with no debt as of 2024, which is a strength. The equity ratio indicates the company is primarily financed through equity, promoting stability. However, historical debt presence in previous years highlights potential past leverage risks. The company has a strong asset base, but the low return on equity reflects ongoing profitability challenges.

Cash Flow

Cash flow from operations is negative, indicating cash challenges. The free cash flow is also negative, suggesting the company is using more cash than it generates. Although financing activities seem to cover the shortfall, reliance on external financing may not be sustainable long-term. The operating cash flow to net income ratio is unfavorable, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.20M	20.66M	5.75M	590.62K	85.55K	73.20K
Gross Profit	15.34M	19.53M	3.04M	2.92M	2.62M	2.16M
EBITDA	-5.11M	374.00K	-15.52M	-19.87M	-16.74M	-8.85M
Net Income	-6.86M	-1.07M	-17.14M	-25.50M	-19.48M	-10.04M
Balance Sheet
Total Assets	65.93M	61.18M	59.11M	50.30M	52.14M	56.99M
Cash, Cash Equivalents and Short-Term Investments	13.58M	11.93M	16.58M	9.78M	14.57M	22.07M
Total Debt	8.87M	8.92M	8.92M	1.75M	2.00M	6.81M
Total Liabilities	16.88M	15.49M	24.00M	25.17M	25.77M	12.47M
Stockholders Equity	49.05M	45.68M	35.10M	25.13M	26.37M	44.52M
Cash Flow
Free Cash Flow	-12.62M	-12.85M	-27.48M	-25.27M	-5.47M	-1.58M
Operating Cash Flow	-6.93M	-6.38M	-26.68M	-21.49M	-2.78M	2.27M
Investing Cash Flow	-5.69M	-6.47M	-798.49K	-3.78M	-2.69M	-3.85M
Financing Cash Flow	16.85M	8.20M	34.29M	20.48M	-2.04M	21.61M

CirChem AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CIRCHE, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.28, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 46.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CIRCHE.

CirChem AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NOTEK	55 Neutral	kr173.70M	14.11	―	―	37.36%	1526.68%
CIRCHE	46 Neutral	€53.07M	24.40	-15.79%	―	―	―
AXOLOT	43 Neutral	€93.98M	-9.58	-17.60%	―	-27.29%	72.72%
SAXG	42 Neutral	€70.26M	―	-14.54%	―	-17.38%	96.53%
SES	41 Neutral	€931.41M	―	-20.69%	―	-79.18%	-257.25%
BIOEX	32 Underperform	kr98.07M	―	-111.91%	―	-27.18%	33.32%