CirChem AB (CIRCHE) AI Stock Analysis

• Market Cap: kr45.03M
• Dividend Yield: N/A
• Average Volume (3M): 64.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SE
• Employees: 13
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.12
• Shares Outstanding: 40,205,837
• 10 Day Avg. Volume: 121,416
• 30 Day Avg. Volume: 64,798
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 3.28
• P/FCF Ratio: -1.59
• 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): kr40.60M

• Rating: 46 Neutral
• Price Target: kr1.00 ▲(17.65% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is held down primarily by weak financial performance, driven by a sharp TTM revenue decline, significant operating/net losses, and heavy negative operating/free cash flow. Technicals provide a partial offset with improving short-term momentum, while valuation remains constrained by loss-making earnings and no indicated dividend yield.

Positive Factors

Manageable leverage

Low debt relative to equity provides a structural cushion versus peers, reducing refinancing and interest-rate risk. This balance-sheet flexibility supports continued R&D, working capital needs or restructuring without immediate solvency pressure, lengthening runway while revenue recovers.

Sustainability-focused model & partnerships

A product set built around circular-economy chemistry targets durable demand drivers (regulation, corporate sustainability). Established distributor/manufacturer partnerships and access to grants diversify revenue channels and help fund R&D, supporting longer-term commercial scalability.

Demonstrated prior near break-even

Having approached operating break-even recently indicates the cost base and operating model can be efficient at modest scale. If revenue stabilizes, operational leverage could re-enable margin recovery without proportionate cost increases, making future profitability a realistic structural outcome.

Negative Factors

Sharp revenue decline

A nearly 30% YoY revenue contraction is a durable red flag: it reduces scale benefits, undermines pricing power and weakens the path to fixed-cost absorption. Unless market share or end-market demand recovers, the revenue base may not support prior operating structure, pressuring long-term margins.

Sustained cash burn

Material negative operating and free cash flow requires recurring external funding, which can dilute equity or increase leverage. Persistent cash burn constrains investments in commercialization and R&D, elevating refinancing risk and potentially accelerating balance-sheet deterioration over the medium term.

Material operating losses and negative ROE

Significant operating and net losses with negative returns on equity signal the company is destroying shareholder capital. Over months this erodes the equity cushion, limits strategic optionality and increases the likelihood of equity raises or cost cuts that could impair growth initiatives and long-term value creation.

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 channels, primarily by selling its chemical products directly to businesses in target industries. The company has established key partnerships with various manufacturers and distributors, enabling it to broaden its market reach and enhance product distribution. Additionally, CirChem invests in research and development to create proprietary formulations that can command premium pricing. The company's commitment to sustainability often attracts grants and funding from governmental and non-governmental organizations aimed at promoting environmentally friendly practices, adding another layer to its revenue model.

CirChem AB Financial Statement Overview

Summary

Overall fundamentals are weak: the income statement shows a sharp TTM deterioration with ~29.9% revenue decline and a swing to sizable operating and net losses, and cash flow is materially negative (TTM operating cash flow -13.7m; free cash flow -20.6m). The main offset is a comparatively manageable balance sheet with low-to-moderate leverage (debt-to-equity ~0.18), which provides some cushion but does not resolve ongoing losses and cash burn.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration: revenue fell ~29.9% versus the prior year and profitability swung from near break-even EBIT in 2024 to a large operating loss (EBIT -11.2m) and net loss (-12.1m). While reported gross profit remains positive, operating and net margins are materially negative in TTM, indicating the cost base is not covered at current scale. The main strength is that the company previously demonstrated the ability to approach operating break-even in 2024, but the latest trajectory is clearly unfavorable.

Balance Sheet

Leverage looks manageable: debt-to-equity is low-to-moderate (about 0.18 in TTM and ~0.20 in 2024), supported by a sizable equity base relative to total debt. However, persistent losses are pressuring returns on equity (negative in all periods, with TTM around -0.14), which can erode balance-sheet strength over time if not reversed. Overall, the balance sheet provides some cushion, but ongoing losses are the key risk.

Cash Flow

Cash generation is weak and worsening: TTM operating cash flow is materially negative (-13.7m) and free cash flow is even more negative (-20.6m), following negative operating cash flow in 2024 as well (-6.4m). Although free cash flow was 'better than net income' in both TTM and 2024 (because net income was also negative), the absolute cash burn is significant and implies continued funding needs. The only clear positive is that cash burn has improved versus the very large outflows seen in 2022–2023, but TTM re-accelerated to heavier burn versus 2024.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.96M	20.66M	5.75M	590.62K	85.55K
Gross Profit	-11.24M	19.53M	3.04M	2.92M	2.62M
EBITDA	-10.12M	374.00K	-15.52M	-19.87M	-16.74M
Net Income	-12.05M	-1.07M	-17.14M	-25.50M	-19.48M
Balance Sheet
Total Assets	69.47M	61.18M	59.11M	50.30M	52.14M
Cash, Cash Equivalents and Short-Term Investments	13.65M	11.93M	16.58M	9.78M	14.57M
Total Debt	12.90M	8.92M	8.92M	1.75M	2.00M
Total Liabilities	25.14M	15.49M	24.00M	25.17M	25.77M
Stockholders Equity	44.33M	45.68M	35.10M	25.13M	26.37M
Cash Flow
Free Cash Flow	-20.57M	-12.85M	-27.48M	-25.27M	-5.47M
Operating Cash Flow	-13.70M	-6.38M	-26.68M	-21.49M	-2.78M
Investing Cash Flow	-6.88M	-6.47M	-798.49K	-3.78M	-2.69M
Financing Cash Flow	22.29M	8.20M	34.29M	20.48M	-2.04M

CirChem AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Positive
• 100DMA: Positive
• 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:CIRCHE, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 0.99, and below the 200-day MA of 1.58, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 16.17 is Positive, 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
NOTEK	64 Neutral	kr184.68M	15.66	―	―	37.36%	1536.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AXOLOT	53 Neutral	kr117.33M	-18.13	-17.60%	―	-27.29%	72.72%
BIOEX	52 Neutral	kr138.92M	-6.73	-111.91%	―	-27.18%	33.32%
SAXG	49 Neutral	kr92.15M	52.98	-14.54%	―	-17.38%	96.53%
CIRCHE	46 Neutral	kr45.03M	-3.51	-15.79%	―	―	―
SES	42 Neutral	kr152.75M	-0.40	-20.69%	―	-79.18%	-257.25%