Magle Chemoswed Holding AB (MAGLE) AI Stock Analysis

• Market Cap: kr340.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 41.83%
• EPS Growth: -183.68%
• Country: SE
• Employees: 147
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.15
• Shares Outstanding: 20,649,378
• 10 Day Avg. Volume: 1,291
• 30 Day Avg. Volume: 1,058
• PEG Ratio: -2.10
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.88
• P/FCF Ratio: -15.95
• 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: 43 Neutral
• Price Target: kr15.50 ▼(-9.88% Downside)

Magle Chemoswed Holding AB's overall stock score is primarily impacted by its financial performance and technical analysis. The company's financial health is challenged by negative profitability and cash flow issues. Technical indicators suggest bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The negative P/E ratio further highlights valuation concerns.

Positive Factors

High gross profit margin

A very high gross margin indicates strong pricing power or low direct production costs in Magle's contract manufacturing model. This margin cushions operating expenses and supports reinvestment in R&D and capacity expansion, providing durable profitability potential even if top-line growth is modest.

Diversified contract revenue base

Multiple revenue streams—contract manufacturing fees, royalties, upfront R&D payments and partnerships—reduce single-customer concentration risk and create recurring, sticky relationships. This business model enhances revenue visibility and long-term customer lifetime value in pharma services.

Solid equity base and manageable leverage

A roughly 51% equity ratio and a 0.65 D/E imply a conservative capital structure that supports resilience during revenue or cash-flow stress. This balance gives the company capacity to fund strategic investments or absorb cyclical downturns without excessive solvency risk over the medium term.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow signals the company struggles to convert reported income into usable cash, increasing reliance on external funding. Over months this undermines the ability to finance working capital, capex, or client projects and raises refinancing and execution risk.

Negative profitability and ROE

Negative net and EBIT margins alongside a subzero ROE indicate the business currently destroys shareholder value. Without durable improvement in operating efficiency or revenue mix, these metrics point to structural profitability issues that will impede capital formation and long-term investor returns.

Volatile free cash flow and cash management

Extremely volatile FCF growth coupled with negative operating cash flow suggests cash generation is inconsistent and likely driven by non-recurring items. This volatility hampers forecasting, raises funding uncertainty for growth projects, and increases the chance of dilutive or costly financing rounds.

Magle Chemoswed Holding AB Business Overview & Revenue Model

Company Description

Magle Chemoswed Holding AB (publ) engages in the research, development, and manufacturing in the areas of pharmaceutical chemistry and pharmaceutical technology in Sweden. The company focuses on the process development and manufacture of active pharmaceutical ingredients (API); and research, development, and production of products in the areas of wound care and diagnostics with a focus on products based on degradable starch microspheres. Its APIs include Warfarin sodium products that are used as anticoagulants for multiple indications; Melperone hydrochloride, which is an antipsychotic agent; Isradipine, a calcium channel blocker used to treat hypertension; Amantadine sulfate that is used in the treatment of central nervous system disorders; and Benserazide hydrochloride, which is used in combination with L-Dopa in the treatment of Parkinson's disease. The company also offers medical devices for applications in the areas of advanced wound care, surgical and diagnostics, and drug delivery comprising EmboCept S, a microsphere based medical device used in vascular occlusion of liver and lung tumors; SmartGel, a non-allergenic hydrogel based on the company's unique microsphere technology; SmartPAN, a medical device for the detection of pancreatic fluid leakage during open or minimally invasive surgical procedures; and EmboCept M, a device for use in the treatment of benign prostatic hyperplasia. It serves companies in the pharmaceutical and medical device industry on a contract basis. The company was founded in 1944 and is headquartered in Malmö, Sweden. Magle Chemoswed Holding AB (publ) is a subsidiary of Magle AB.

How the Company Makes Money

MAGLE generates revenue primarily through contract manufacturing services and partnerships with pharmaceutical companies. The company offers a range of services including the development of drug formulations, scale-up production, and regulatory support. Key revenue streams include fees for contract services, royalties from product sales developed in collaboration with partners, and upfront payments from clients for research and development projects. Additionally, MAGLE's strategic collaborations with biotech firms and pharmaceutical companies enhance its revenue potential by leveraging shared expertise and resources in drug development, thus driving earnings growth.

Magle Chemoswed Holding AB Financial Statement Overview

Summary

Magle Chemoswed Holding AB faces several financial challenges. Despite a strong gross profit margin, the company struggles with profitability due to negative net income and EBIT margins. The balance sheet shows moderate debt levels, but the negative return on equity is concerning. Cash flow issues are evident, with negative operating cash flow and high volatility in free cash flow growth.

Income Statement

Magle Chemoswed Holding AB's income statement shows a mixed performance. The company has a high gross profit margin of 93.45% TTM, indicating strong cost management. However, the net profit margin is negative at -7.06% TTM, reflecting challenges in achieving profitability. Revenue growth is positive at 2.40% TTM, but the negative EBIT margin of -1.41% TTM suggests operational inefficiencies. The EBITDA margin of 17.46% TTM is decent, but overall profitability remains a concern.

Balance Sheet

The balance sheet of Magle Chemoswed Holding AB indicates moderate financial stability. The debt-to-equity ratio is 0.65 TTM, which is manageable but shows a reliance on debt. The return on equity is negative at -3.79% TTM, highlighting issues in generating returns for shareholders. The equity ratio is 51.18% TTM, suggesting a solid equity base relative to total assets, which provides some financial stability.

Cash Flow

The cash flow statement reveals significant challenges for Magle Chemoswed Holding AB. The operating cash flow is negative, and the free cash flow growth rate is extremely high at 592.91% TTM, indicating volatility. The operating cash flow to net income ratio is negative, suggesting difficulties in converting income into cash. The free cash flow to net income ratio of 51.22% TTM shows some ability to generate cash relative to net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	292.44M	236.04M	170.44M	145.68M	132.15M	142.34M
Gross Profit	300.22M	221.55M	152.87M	134.38M	110.83M	111.94M
EBITDA	56.71M	59.21M	31.40M	25.77M	18.14M	14.88M
Net Income	-26.59M	11.94M	12.17M	9.14M	4.28M	1.82M
Balance Sheet
Total Assets	1.04B	1.09B	272.97M	252.86M	237.18M	198.06M
Cash, Cash Equivalents and Short-Term Investments	11.80M	2.72M	7.08M	9.88M	3.98M	6.12M
Total Debt	338.10M	359.92M	60.30M	50.34M	36.46M	44.82M
Total Liabilities	507.05M	531.58M	114.75M	106.09M	98.39M	81.94M
Stockholders Equity	531.75M	560.60M	158.22M	146.77M	138.79M	116.12M
Cash Flow
Free Cash Flow	-70.66M	-27.85M	209.00K	-4.41M	14.21M	-17.95M
Operating Cash Flow	-80.38M	-11.70M	15.33M	12.47M	26.04M	-5.54M
Investing Cash Flow	-5.13M	-9.97M	-20.41M	-21.49M	-34.05M	-15.08M
Financing Cash Flow	89.91M	17.09M	2.52M	14.80M	5.87M	23.45M

Magle Chemoswed Holding AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.20
• 50DMA: Negative
• 100DMA: Negative
• 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:MAGLE, the sentiment is Negative. The current price of 17.2 is above the 20-day moving average (MA) of 16.61, below the 50-day MA of 17.68, and below the 200-day MA of 22.40, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:MAGLE.

Magle Chemoswed Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XBRANE	53 Neutral	kr236.30M	1.23	-16.90%	―	4.64%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLBIO	50 Neutral	kr445.73M	-17.25	―	―	―	―
GUARD	46 Neutral	kr47.39M	-0.26	-199.25%	―	―	0.30%
IMMU	46 Neutral	kr356.37M	-2.73	-16.51%	―	―	31.37%
IVACC	45 Neutral	kr312.18M	-2.33	-25.66%	―	127.13%	56.91%
MAGLE	43 Neutral	kr340.71M	-12.46	-5.32%	―	41.83%	-183.68%