Polygiene AB (POLYG) AI Stock Analysis

• Market Cap: kr314.13M
• Dividend Yield: 2.89%
• Average Volume (3M): 6.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 7.92%
• EPS Growth: 94.99%
• Country: SE
• Employees: 37
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): 0.05
• Shares Outstanding: 36,526,990
• 10 Day Avg. Volume: 5,228
• 30 Day Avg. Volume: 6,198
• PEG Ratio: -0.27
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 19.99
• 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: 52 Neutral
• Price Target: kr8.50 ▼(-7.81% Downside)

Polygiene AB's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and negative net income. Technical analysis shows moderate bullish momentum, but valuation is hindered by a negative P/E ratio. The dividend yield offers some compensation for investors.

Positive Factors

High Gross Margin

A 66.9% gross margin indicates durable unit economics from the treatment technology; it suggests pricing power and low direct costs. Over months this margin provides a buffer to invest in sales or R&D and supports margin expansion as licensing revenues scale.

Asset-light Licensing Model

An asset-light, B2B licensing and brand-support model reduces capex needs and allows scalable revenue tied to customer production. This structure supports predictable per-unit fees, faster geographic/category expansion, and higher operating leverage as volumes grow.

Low Financial Leverage

Very low debt levels provide financial flexibility and limited interest burden, enabling the company to withstand downturns and pursue incremental investments in marketing, partnerships, or product development without major refinancing risk over the medium term.

Negative Factors

Negative Net Profit Margin

A persistent negative net margin despite high gross margins indicates operating expenses or scaling issues are eroding profitability. Unless SG&A or other operating costs are reduced or revenue mix improves, this undermines the company's ability to generate sustainable earnings.

Weak Cash Generation

Steep decline in free cash flow and low operating cash conversion constrain the firm's ability to self-fund growth, pay dividends, or weather shocks. Over several months this raises financing risk and may force dilution or curtailed investment if not remedied.

Negative Return on Equity

Negative ROE indicates the company is not currently generating returns on shareholder capital, reflecting operational losses or inefficient capital use. Persisting negative ROE can hurt long-term investor confidence and limit access to cheaper capital.

Polygiene AB Business Overview & Revenue Model

Company Description

Polygiene Group AB develops, manufactures, and sells odor control and stay fresh solutions for clothes, sports equipment, textiles, and other materials in the Middle East, Africa, the Asia Pacific, the Americas, Europe, and internationally. It serves partners in the categories of sports and outdoor, fashion and lifestyle, workwear, hospitality, home and pets, healthcare, water, industrial, and paper and packaging. The company offers its products under the Polygiene brand. The company was formerly known as Polygiene AB (publ.) and changed its name to Polygiene Group AB in June 2022. Polygiene Group AB was founded in 2005 and is headquartered in Malmö, Sweden.

How the Company Makes Money

Polygiene generates revenue primarily through the sale of its antimicrobial and odor control treatments to various industries, including apparel, home textiles, and sports equipment. The company licenses its technology to manufacturers who incorporate Polygiene's treatments into their products, allowing them to command a premium price due to the added value of enhanced durability and hygiene. Key revenue streams include direct sales to textile manufacturers, licensing agreements with brands, and royalties from products that feature Polygiene's technology. Additionally, partnerships with leading global brands in the fashion and sports sectors contribute significantly to Polygiene's earnings, as these collaborations often lead to increased product visibility and demand.

Polygiene AB Financial Statement Overview

Summary

Polygiene AB faces profitability and cash flow challenges, with declining revenue growth and negative net income. Despite strong gross profit margins and a stable balance sheet with low leverage, the company struggles with operational efficiency and cash generation.

Income Statement

Polygiene AB's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -3.81%, and a negative net profit margin of -6.55%, suggesting profitability challenges. However, the gross profit margin remains strong at 66.90%, indicating efficient cost management. The EBIT and EBITDA margins are relatively low at 4.78% and 8.30%, respectively, reflecting operational inefficiencies.

Balance Sheet

The balance sheet of Polygiene AB is stable with a low debt-to-equity ratio of 0.011, indicating minimal leverage and financial risk. However, the return on equity is negative at -3.55%, reflecting challenges in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -164.76% in the TTM period. The operating cash flow to net income ratio is low at 0.22, indicating weak cash generation relative to net income. The free cash flow to net income ratio is positive at 0.67, but overall cash flow performance is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.06M	156.95M	113.54M	173.56M	181.61M	83.93M
Gross Profit	96.55M	103.78M	77.16M	114.57M	115.24M	56.53M
EBITDA	11.59M	18.80M	-305.61M	19.10M	43.99M	701.00K
Net Income	-10.83M	16.83M	-321.95M	8.36M	32.83M	-1.74M
Balance Sheet
Total Assets	318.72M	350.84M	313.78M	621.90M	550.69M	57.64M
Cash, Cash Equivalents and Short-Term Investments	45.30M	68.59M	44.15M	48.06M	52.40M	4.33M
Total Debt	2.91M	2.63M	3.89M	1.64M	2.40M	1.66M
Total Liabilities	24.66M	31.23M	22.53M	29.34M	31.54M	30.16M
Stockholders Equity	294.06M	319.61M	291.25M	592.56M	519.15M	27.48M
Cash Flow
Free Cash Flow	-2.18M	22.75M	-4.27M	-50.64M	34.15M	1.03M
Operating Cash Flow	373.00K	24.34M	3.79M	-1.54M	37.60M	2.92M
Investing Cash Flow	-3.79M	-1.59M	-9.42M	-52.11M	-407.47M	-4.04M
Financing Cash Flow	-5.21M	-1.38M	1.95M	47.50M	416.27M	694.00K

Polygiene AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.22
• 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:POLYG, the sentiment is Negative. The current price of 9.22 is above the 20-day moving average (MA) of 9.12, below the 50-day MA of 9.39, and below the 200-day MA of 10.01, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:POLYG.

Polygiene AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
POLYG	52 Neutral	kr314.13M	-20.56	-5.04%	2.89%	7.92%	94.99%
NEXAM	45 Neutral	kr242.91M	-11.65	-7.96%	―	-1.89%	-59.17%
ORGC	45 Neutral	kr193.06M	-6.30	-75.16%	―	-18.29%	-48.74%
AXIC.A	44 Neutral	kr109.36M	-6.08	-30.10%	―	114.57%	53.86%
LCLEAN	40 Underperform	kr17.71M	-0.19	-354.88%	―	-15.74%	44.98%