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CirChem AB (SE:CIRCHE)
:CIRCHE

CirChem AB (CIRCHE) AI Stock Analysis

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CirChem AB

(Frankfurt:CIRCHE)

Rating:41Neutral
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 (CIRCHE) vs. iShares MSCI Sweden ETF (EWD)

CirChem AB Business Overview & Revenue Model

Company DescriptionCirChem 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 MoneyCirChem 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
45
Neutral
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
60
Neutral
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
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.66M5.75M590.62K85.55K73.20K
Gross Profit19.53M3.04M2.92M2.62M2.16M
EBITDA374.00K-15.52M-19.87M-16.74M-8.85M
Net Income-1.07M-17.14M-25.50M-19.48M-10.04M
Balance Sheet
Total Assets61.18M59.11M50.30M52.14M56.99M
Cash, Cash Equivalents and Short-Term Investments11.93M16.58M9.78M14.57M22.07M
Total Debt0.008.92M1.75M2.00M6.81M
Total Liabilities15.49M24.00M25.17M25.77M12.47M
Stockholders Equity45.68M35.10M25.13M26.37M44.52M
Cash Flow
Free Cash Flow-12.85M-27.48M-25.27M-5.47M-1.58M
Operating Cash Flow-6.38M-26.68M-21.49M-2.78M2.27M
Investing Cash Flow-6.47M-798.49K-3.78M-2.69M-3.85M
Financing Cash Flow8.20M34.29M20.48M-2.04M21.61M

CirChem AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.12
Price Trends
50DMA
2.30
Negative
100DMA
2.72
Negative
200DMA
2.92
Negative
Market Momentum
MACD
-0.06
Negative
RSI
46.36
Neutral
STOCH
18.26
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
64
Neutral
kr107.84M18.924.23%4.75%-18.12%
52
Neutral
€1.01B-54.63%-40.71%17.94%
43
Neutral
kr59.32M-36.51%-12.51%69.88%
43
Neutral
kr24.30M-100.44%-77.07%-9.14%
41
Neutral
kr70.70M75.54
36
Underperform
€91.46M-103.44%78.69%36.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:CIRCHE
CirChem AB
2.10
-0.55
-20.75%
SE:BOMILL
BoMill AB
0.76
-0.14
-15.78%
SE:GGEO
Guideline Geo AB
10.00
-1.95
-16.32%
SE:MANTEX
Mantex AB
11.20
-64.03
-85.11%
SE:SALT.B
SaltX Technology Holding AB Class B
5.66
0.90
18.78%
SE:SAXG
Saxlund Group AB
8.24
-49.63
-85.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 21, 2025