Scandinavian ChemoTech AB Class B (CMOTEC.B) AI Stock Analysis

• Market Cap: kr102.48M
• Dividend Yield: N/A
• Average Volume (3M): 54.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.41
• Revenue Growth: 132.07%
• EPS Growth: 54.65%
• Country: SE
• Employees: 3
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.05
• Shares Outstanding: 21,692,312
• 10 Day Avg. Volume: 61,695
• 30 Day Avg. Volume: 54,140
• PEG Ratio: 0.05
• Price to Book (P/B): 6.99
• Price to Sales (P/S): 6.36
• P/FCF Ratio: -3.17
• 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: 45 Neutral
• Price Target: kr4.00 ▼(-16.49% Downside)

The score is held back primarily by heavy ongoing losses, negative free cash flow, and erosion of equity despite improving revenue growth and gross margins. Technical indicators also remain weak with the stock trading below key moving averages and negative MACD, while valuation is difficult to support with a negative P/E and no dividend yield provided.

Positive Factors

Recurring consumables revenue model

ChemoTech’s business model generates recurring revenue from single-use consumables and procedure items tied to installed IQwave systems. As installed base grows, recurring consumable sales create a durable, high-frequency revenue stream that can stabilize cash flows and margin profiles over time.

Improving gross margins

A material gross margin improvement to ~73% in 2024 indicates better unit economics and pricing or mix improvements. Sustained higher gross margins increase operating leverage potential, meaning revenue growth can more effectively translate into reduced losses and eventual profitability as scale builds.

Very low leverage / no debt

The absence of debt lowers fixed financial obligations and interest risk, preserving cash flow for R&D, commercial expansion, and working capital. Structurally, a clean balance sheet improves strategic flexibility and reduces insolvency risk while management executes growth plans.

Negative Factors

Persistent negative free cash flow

Large negative free cash flow (~-13.1M in 2024) shows the company is burning cash despite revenue gains. Over the medium term this creates dependence on external financing, increases execution risk, and may force tradeoffs between growth investments and capital preservation if cash burn does not decline.

Deep ongoing net losses

Extremely negative net margins (~-209%) indicate operating costs far exceed current revenue. Persisting large losses erode shareholder equity, constrain reinvestment capacity, and make it difficult to reach self-sustaining profitability without substantial scale or structural cost reductions.

Eroding equity base

A sharp decline in equity from ~11M to ~6M signals cumulative losses are depleting the capital buffer. This reduces balance-sheet flexibility, raises the likelihood of future dilution or financing constraints, and limits the company’s ability to absorb setbacks while scaling commercial operations.

Scandinavian ChemoTech AB Class B Business Overview & Revenue Model

Company Description

Scandinavian ChemoTech AB (publ) provides cancer care and pain management solutions. Its product, IQWave, is an electroporation device, which combines short electric pulses with chemotherapy administrated locally or intravenously used for treating head and neck squamous cell carcinoma, malignant melanoma, basal cell carcinoma, adenocarcinoma of the breast and salivary gland, hypernephroma, kaposi sarcoma, and transitional cell carcinoma. The company markets its products through distribution channels and a network of opinion leaders in South East Asia, India, and the Philippines. Scandinavian ChemoTech AB (publ) was incorporated in 2013 and is headquartered in Lund, Sweden.

How the Company Makes Money

Scandinavian ChemoTech AB generates revenue primarily through the sale and licensing of its proprietary medical technologies and devices designed for cancer treatment. The company's revenue streams include direct sales of its electroporation equipment to healthcare providers and hospitals, as well as potential licensing agreements with other medical technology companies. Additionally, Scandinavian ChemoTech may engage in strategic partnerships or collaborations that contribute to its earnings, leveraging its specialized expertise in electroporation to expand its market reach and enhance its product offerings. These revenue-generating activities are supported by ongoing research and development investments, aimed at continuously improving the efficacy and safety of their treatments.

Scandinavian ChemoTech AB Class B Financial Statement Overview

Summary

Revenue growth and a sharp gross margin improvement (~73% in 2024) are positives, and low leverage/no debt reduces solvency risk. However, the company remains deeply loss-making with persistent negative free cash flow and a shrinking equity base, indicating ongoing funding/burn risk.

Income Statement

Revenue is ramping quickly (up ~30% in 2024 after modest growth in 2023), and gross margin improved meaningfully to ~73% in 2024 (from ~59% in 2023), indicating better unit economics. However, the company remains deeply loss-making: 2024 operating profitability and net margin are still heavily negative (net margin around -209%), which signals that operating costs are far larger than the current revenue base. Overall, the trajectory on sales and gross profit is improving, but the income statement is still dominated by large ongoing losses.

Balance Sheet

Leverage is very low with no debt reported in 2022–2024 (and minimal debt historically), which reduces financial risk and interest burden. The key weakness is that equity has declined sharply (from ~11.0M in 2023 to ~6.0M in 2024), consistent with continued losses eroding the capital base; returns on equity remain strongly negative. Asset levels are also lower versus prior years, suggesting reduced balance-sheet flexibility if losses persist.

Cash Flow

Cash generation is a major pressure point: operating cash flow and free cash flow are consistently negative and remain large in magnitude (about -13.1M free cash flow in 2024). Cash burn improved versus 2023 (less negative operating and free cash flow), but free cash flow still did not move into a sustainable range. While cash outflow roughly tracks accounting losses (free cash flow to net income near 1x in recent years), the business still appears dependent on external funding until cash burn materially declines or revenues scale further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.85M	6.57M	2.82M	473.00K	49.00K	131.00K
Gross Profit	7.69M	4.78M	1.66M	-55.00K	323.00K	-14.00K
EBITDA	-7.46M	-12.38M	-19.58M	-20.81M	-17.03M	-10.77M
Net Income	-10.68M	-13.72M	-21.09M	-22.75M	-17.74M	-11.66M
Balance Sheet
Total Assets	12.48M	13.38M	14.87M	21.70M	25.81M	15.99M
Cash, Cash Equivalents and Short-Term Investments	517.00K	949.00K	923.00K	5.85M	8.68M	1.49M
Total Debt	0.00	0.00	0.00	0.00	53.00K	2.71M
Total Liabilities	10.29M	7.40M	3.84M	7.71M	1.89M	6.75M
Stockholders Equity	2.19M	5.98M	11.03M	13.99M	23.92M	9.24M
Cash Flow
Free Cash Flow	-9.48M	-13.19M	-18.91M	-19.96M	-22.36M	-10.32M
Operating Cash Flow	-9.48M	-13.14M	-18.23M	-19.63M	-19.18M	-8.49M
Investing Cash Flow	52.00K	-2.00K	-468.00K	-603.00K	-3.33M	-1.83M
Financing Cash Flow	8.09M	13.17M	13.77M	17.26M	29.71M	8.98M

Scandinavian ChemoTech AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:CMOTEC.B, the sentiment is Negative. The current price of 4.79 is above the 20-day moving average (MA) of 4.03, above the 50-day MA of 4.08, and above the 200-day MA of 3.53, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 61.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:CMOTEC.B.

Scandinavian ChemoTech AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2CUREX	54 Neutral	kr53.47M	-9.34	-304.59%	11.26%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPRINT	49 Neutral	kr171.46M	-5.51	-264.12%	―	-17.80%	-11.96%
EXPRS2	46 Neutral	kr50.98M	-0.90	-88.65%	―	8.46%	11.73%
CMOTEC.B	45 Neutral	kr102.48M	-10.60	-114.00%	―	132.07%	54.65%
LARK	43 Neutral	kr43.96M	-0.99	―	8.47%	-94.12%	-25.83%
ONCOZ	41 Neutral	kr65.26M	-8.07	-78.79%	―	―	20.55%