CirChem AB (CIRCHE) AI Stock Analysis

• Market Cap: kr70.70M
• Dividend Yield: N/A
• Average Volume (3M): 72.86K
• Price to Earnings (P/E): 75.5
• Beta (1Y): 0.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 13
• Sector: Industrials
• Sector Strength: 86
• Industry: Waste Management
• EPS (TTM): -0.04
• Shares Outstanding: 33,504,868
• 10 Day Avg. Volume: 40,076
• 30 Day Avg. Volume: 72,860
• PEG Ratio: -1.95
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.54
• 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

• Rating: 41 Neutral
• Price Target: ―

The overall stock score reflects significant financial challenges despite strong revenue growth. The company's ongoing net losses and negative cash flows weigh heavily on its financial health. Technical analysis indicates a bearish trend, and the valuation is unattractive due to negative earnings and no dividend yield. While the company benefits from a solid equity position, improving profitability and cash flow remains crucial for a positive outlook.

CirChem AB Business Overview & Revenue Model

Company Description

CirChem AB (CIRCHE) is a Swedish company focused on the development and implementation of sustainable chemical recycling processes. The company primarily operates in the environmental technology sector and provides solutions for the recovery and purification of solvents and other chemicals, aiming to minimize waste and reduce environmental impact. CirChem leverages innovative technologies to facilitate the circular economy by transforming waste streams into valuable resources.

How the Company Makes Money

CirChem AB makes money by offering recycling and purification services to industries that use solvents and chemicals in their processes. The company generates revenue by charging fees for the recovery and purification of used chemicals, which are then sold back to clients or on the market as recycled products. Key revenue streams include contracts with manufacturing companies, partnerships with waste management firms, and collaborations with industries seeking sustainable solutions for chemical waste. The company's earnings are bolstered by its expertise in chemical recycling, advanced technologies, and commitment to environmental sustainability, which attract clients looking to meet regulatory requirements and reduce their environmental footprint.

CirChem AB Financial Statement Overview

Summary

CirChem AB shows strong revenue growth and effective cost management at the production level. However, persistent net losses and negative cash flows present significant challenges. The company benefits from a strong equity position with no current debt, but past leverage and reliance on external financing for cash flow deficiencies pose risks. Continued focus on improving profitability and cash flow generation will be crucial for sustainable financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.66M	5.75M	590.62K	85.55K	73.20K
Gross Profit	19.53M	3.04M	2.92M	2.62M	2.16M
EBITDA	374.00K	-15.52M	-19.87M	-16.74M	-8.85M
Net Income	-1.07M	-17.14M	-25.50M	-19.48M	-10.04M
Balance Sheet
Total Assets	61.18M	59.11M	50.30M	52.14M	56.99M
Cash, Cash Equivalents and Short-Term Investments	11.93M	16.58M	9.78M	14.57M	22.07M
Total Debt	0.00	8.92M	1.75M	2.00M	6.81M
Total Liabilities	15.49M	24.00M	25.17M	25.77M	12.47M
Stockholders Equity	45.68M	35.10M	25.13M	26.37M	44.52M
Cash Flow
Free Cash Flow	-12.85M	-27.48M	-25.27M	-5.47M	-1.58M
Operating Cash Flow	-6.38M	-26.68M	-21.49M	-2.78M	2.27M
Investing Cash Flow	-6.47M	-798.49K	-3.78M	-2.69M	-3.85M
Financing Cash Flow	8.20M	34.29M	20.48M	-2.04M	21.61M

CirChem AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CIRCHE, the sentiment is Neutral. The current price of 2.12 is above the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.30, and below the 200-day MA of 2.92, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:CIRCHE.

CirChem AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
GGEO	64 Neutral	kr107.84M	18.92	4.23%	―	4.75%	-18.12%
SALT.B	52 Neutral	€1.01B	―	-54.63%	―	-40.71%	17.94%
SAXG	43 Neutral	kr59.32M	―	-36.51%	―	-12.51%	69.88%
MANTEX	43 Neutral	kr24.30M	―	-100.44%	―	-77.07%	-9.14%
CIRCHE	41 Neutral	kr70.70M	75.54		―	―	―
BOMILL	36 Underperform	€91.46M	―	-103.44%	―	78.69%	36.67%