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): 0.05
• 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 / balance sheet cushion

Low reported debt-to-equity (~0.18) gives CirChem financial flexibility relative to many loss-making peers. This cushion reduces near-term refinancing risk, enabling the company to sustain R&D and partnership investments while executing a recovery plan before capital markets pressure intensifies.

Prior proximity to operating break-even

The company’s prior near break-even performance in 2024 indicates operational leverage in the model: modest revenue recovery or cost control could restore profitability. That structural sensitivity suggests management can influence margins without requiring outsized revenue growth to move back toward positive operating income.

Diversified revenue channels and sustainability focus

CirChem’s multi-channel revenue model (direct sales, partner/distributor networks, R&D-derived products and sustainability grants) reduces single-channel risk and extends market reach. Its circular-economy product focus aligns with structural demand, supporting durable commercial opportunities across industries.

Negative Factors

Sharp revenue decline and sustained losses

A nearly 30% TTM revenue drop combined with large operating and net losses shows the company is shrinking while burning margin. Structural recovery requires reversing revenue trends and rebuilding margins; without durable top-line stabilization, returns on capital and the business model remain impaired long-term.

Material negative cash generation

Consistent and sizable negative operating and free cash flows indicate ongoing funding needs. Persistent cash burn limits ability to invest organically, forces reliance on external financing or dilution, and raises execution risk if capital access tightens, making long-term recovery dependent on secured funding or rapid cash improvement.

Very small operating scale

A 13-person workforce implies constrained internal capacity for sales, scale manufacturing, and broad R&D commercialization. Reliance on partners increases operational risk and slows market penetration; scaling will likely require meaningful hires and fixed-cost increases that could worsen margins until revenue growth materializes.

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: 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 1.15, below the 50-day MA of 1.02, and below the 200-day MA of 1.54, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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
NOTEK	64 Neutral	kr175.76M	11.90	―	―	37.36%	1536.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AXOLOT	53 Neutral	kr112.30M	-13.81	-17.60%	―	-27.29%	72.72%
BIOEX	52 Neutral	kr132.44M	-6.27	-111.91%	―	-27.18%	33.32%
SAXG	49 Neutral	kr104.03M	45.33	-14.54%	―	-17.38%	96.53%
CIRCHE	46 Neutral	kr45.03M	-2.71	-15.79%	―	―	―
SES	44 Neutral	kr181.90M	-2.12	-20.69%	―	-79.18%	-257.25%