Scandinavian Enviro Systems AB (SES) AI Stock Analysis

• Market Cap: kr136.09M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• Revenue Growth: -79.18%
• EPS Growth: -257.25%
• Country: SE
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.27
• Shares Outstanding: 1,095,772,200
• 10 Day Avg. Volume: 3,094,586
• 30 Day Avg. Volume: 2,489,538
• PEG Ratio: <0.01
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 24.68
• P/FCF Ratio: -10.59
• 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): -0.04
• Revenue Forecast (FY): kr55.00M

• Rating: 47 Neutral
• Price Target: kr0.12 ▼(-85.30% Downside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

The score is held down primarily by weak and volatile financial performance (sharp swing to large 2025 losses and negative operating cash flow, with consistently negative free cash flow) and a strongly bearish technical setup (price well below all major moving averages, negative MACD, very low RSI). A conservatively financed balance sheet partially offsets these risks, but valuation metrics are not supportive due to negative earnings and no dividend yield data.

Positive Factors

Scalable licensing & service model

SES’s business centers on licensing a proprietary tyre-pyrolysis process plus engineering, royalties and project participation. A license/royalty model can scale with limited capital intensity and produce recurring revenue as more plants adopt the technology, supporting durable revenue expansion if adoption follows.

Conservative balance sheet

Very low debt-to-equity (~0.01–0.04) and sizable equity provide financial resilience through cyclical losses and project ramp phases. This conservative capital structure lowers insolvency risk, gives management optionality for project financing, and extends runway for commercial rollouts without immediate refinancing pressure.

Aligned with long-term recycling trends

SES operates in tyre recycling, a structurally favorable area amid tightening environmental rules and circular-economy focus. Proprietary recovery of carbon black addresses industrial demand for recycled inputs, positioning SES to benefit from multi-year regulatory and corporate sustainability-driven demand growth if commercial adoption progresses.

Negative Factors

Highly volatile profitability

Earnings have been unstable, with only one recent profitable year and a sharp swing to large 2025 losses. Such volatility signals execution and commercialisation risk: inconsistent margins and recurring losses weaken ability to reinvest, undermine partner confidence, and make multi-quarter earnings visibility limited.

Persistent negative free cash flow

Consistent negative free cash flow indicates the business cannot self-fund growth or plant support. Ongoing cash burn increases reliance on external funding, raises dilution and financing risk, and constrains the company’s ability to scale license rollouts or fund project support without raising capital.

Severe recent revenue deterioration

Extremely weak recent top-line and EPS metrics point to project delays, lost orders or adoption issues. Sharp revenue deterioration undermines proof points for the licensing model, reduces recurring royalty potential, and makes multi-period revenue predictability and long-term growth planning difficult.

Scandinavian Enviro Systems AB Business Overview & Revenue Model

Company Description

Scandinavian Enviro Systems AB (publ) develops, constructs, owns, and operates plants for material recovery of resources from used tires worldwide. Its plants and circular materials include carbon black, oil, steel, and gas for general rubber, tyre, and rubber membrane applications. The company was incorporated in 2001 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

SES generates revenue primarily through the sale of the raw materials produced from its tire recycling process, such as recovered carbon black, oil, and steel. The company has established key partnerships with tire manufacturers, automotive companies, and industrial clients who require these materials for their production processes. Additionally, SES may earn income from licensing its pyrolysis technology to other firms, which allows them to implement similar recycling solutions. The demand for sustainable and eco-friendly materials, driven by increasing regulatory pressure and consumer awareness, further supports SES's revenue generation.

Scandinavian Enviro Systems AB Financial Statement Overview

Summary

Balance sheet strength (very low leverage and sizable equity) supports resilience, but operating results are highly unstable: 2025 saw a sharp reversal from 2024 profitability to deep losses, with negative margins and meaningfully negative operating cash flow. Free cash flow is negative across all years shown, indicating persistent cash burn despite the conservative capital structure.

Income Statement

Performance is highly volatile and currently weak. After a profitable 2024 (revenue up ~11% with strong positive gross and net margins), 2025 reversed sharply: revenue fell ~10% and profitability swung deeply negative (gross, operating, and net margins all materially below zero), resulting in a large net loss. The multi-year history shows repeated loss years with only one recent profitable year, indicating an unstable earnings base and elevated execution risk.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage across periods (debt-to-equity consistently around ~0.01–0.04). Equity remains sizable, providing a cushion despite earnings volatility. The key weakness is returns: return on equity is sharply negative in 2025 following a positive 2024, reflecting that the company is not consistently converting its capital base into profits.

Cash Flow

Cash generation is inconsistent and currently pressured. Operating cash flow was positive in 2024 but turned meaningfully negative again in 2025, and free cash flow is negative in every year shown (including 2024 despite positive net income), signaling ongoing cash burn and reinvestment/funding needs. While 2025 free cash flow is roughly in line with the net loss, the overall pattern points to limited self-funding capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.53M	170.75M	13.94M	7.98M	7.59M
Gross Profit	-101.84M	161.05M	-27.50M	5.91M	6.68M
EBITDA	-84.25M	71.39M	-79.48M	-75.00M	-48.50M
Net Income	-366.62M	53.62M	-92.32M	-83.39M	-57.33M
Balance Sheet
Total Assets	281.04M	444.88M	381.40M	170.85M	243.04M
Cash, Cash Equivalents and Short-Term Investments	73.49M	75.31M	214.90M	29.98M	123.25M
Total Debt	3.58M	4.39M	5.21M	6.02M	776.00K
Total Liabilities	55.26M	57.47M	47.60M	27.27M	15.87M
Stockholders Equity	225.79M	387.41M	333.79M	143.58M	227.16M
Cash Flow
Free Cash Flow	-73.49M	-30.35M	-96.81M	-98.66M	-55.73M
Operating Cash Flow	-71.21M	54.24M	-57.80M	-65.74M	-41.30M
Investing Cash Flow	-134.79M	-193.01M	-39.01M	-32.78M	-14.43M
Financing Cash Flow	204.18M	-816.00K	281.73M	5.25M	139.40M

Scandinavian Enviro Systems AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SES, the sentiment is Negative. The current price of 0.83 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.62, and above the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 20.53 is Positive, neither overbought nor oversold. The STOCH value of 31.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SES.

Scandinavian Enviro Systems AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NORB.B	50 Neutral	kr689.72M	24.11	1.98%	―	4.24%	29.69%
EOLU.B	49 Neutral	kr914.67M	-2.64	18.63%	5.62%	―	―
SES	47 Neutral	kr136.09M	-0.36	-20.69%	―	-79.18%	-257.25%
GARO	47 Neutral	kr638.00M	-37.31	-2.59%	―	-9.58%	76.19%