Scandinavian Enviro Systems AB (SES) AI Stock Analysis

• Market Cap: kr814.16M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: -79.18%
• EPS Growth: -257.25%
• Country: SE
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.02
• Shares Outstanding: 1,095,772,200
• 10 Day Avg. Volume: 3,094,586
• 30 Day Avg. Volume: 2,489,538
• PEG Ratio: -0.17
• Price to Book (P/B): 3.73
• Price to Sales (P/S): 8.46
• P/FCF Ratio: -47.58
• 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: 42 Neutral
• Price Target: kr0.76 ▼(-8.67% Downside)

The score is primarily held down by poor financial performance (sharp revenue contraction, negative margins, and negative operating/free cash flow). Technicals add further pressure with price below key moving averages and only muted momentum signals, while valuation is difficult to support given the negative P/E and lack of dividend data.

Positive Factors

Proprietary tyre pyrolysis licensing model

A licensing-based pyrolysis technology model is structurally scalable: SES can expand reach via technology licenses and plant support without owning all plant capital. Recurring royalties and engineering services can produce durable revenue streams if adoption of recycling plants grows over months.

Multiple project-linked revenue streams

A diversified revenue mix (licenses, engineering, royalties, JV participation and potential product sales) reduces reliance on any single contract type. Over a medium horizon this breadth supports resilience as plants shift from setup to operational royalty generation and possible off-taker relationships.

Conservative leverage and low debt levels

Low leverage provides durable financial flexibility: SES is better positioned to finance project development or withstand delayed cash receipts without immediate solvency pressure. Conservative debt levels support longer runway to commercialize technologies and negotiate plant partnerships.

Negative Factors

Steep trailing revenue decline

A large, persistent revenue contraction undermines scale economics and reduces headline addressable revenue from licensing and services. Over several months this weak top-line trend pressures investment in sales, slows project pipeline conversion, and makes multi-project rollouts harder to self-fund.

Negative operating and free cash flow

Ongoing negative operating and free cash flow erodes the company's ability to fund plant support, R&D, and working capital internally. Over a 2–6 month horizon this increases dependency on external financing or partner-funded projects, delaying organic scaling of license and royalty income.

Negative profitability and weak returns on equity

Sustained negative EBIT and net margins, plus negative ROE, indicate the business currently fails to convert revenues into shareholder returns. This structural profitability gap hampers reinvestment capacity, weakens bargaining power with partners, and risks long-term viability absent margin recovery.

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

Weak overall fundamentals: steep TTM revenue decline (-57.3%), negative profitability (net profit and EBIT margins), and negative operating/free cash flow. The balance sheet is conservatively leveraged, but negative ROE and poor cash generation materially reduce the financial performance score.

Income Statement

The company has experienced a significant decline in revenue, with a TTM revenue growth rate of -57.3%. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating operational challenges. Historical data shows inconsistent revenue growth and fluctuating margins, reflecting instability in financial performance.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is stable, but the overall financial health is weakened by poor profitability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite a high free cash flow to net income ratio, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.97M	170.75M	13.94M	7.98M	7.59M	1.51M
Gross Profit	2.37M	161.05M	-27.50M	5.91M	6.68M	1.50M
EBITDA	-77.51M	71.39M	-79.48M	-75.00M	-48.50M	-41.90M
Net Income	-97.42M	53.62M	-92.32M	-83.39M	-57.33M	-50.40M
Balance Sheet
Total Assets	578.86M	444.88M	381.40M	170.85M	243.04M	156.63M
Cash, Cash Equivalents and Short-Term Investments	133.84M	75.31M	214.90M	29.98M	123.25M	39.58M
Total Debt	3.78M	4.39M	5.21M	6.02M	776.00K	3.94M
Total Liabilities	56.45M	57.47M	47.60M	27.27M	15.87M	15.01M
Stockholders Equity	522.40M	387.41M	333.79M	143.58M	227.16M	141.63M
Cash Flow
Free Cash Flow	-141.01M	-30.35M	-96.81M	-98.66M	-55.73M	-48.42M
Operating Cash Flow	-53.56M	54.24M	-57.80M	-65.74M	-41.30M	-37.58M
Investing Cash Flow	-139.84M	-193.01M	-39.01M	-32.78M	-14.43M	-10.83M
Financing Cash Flow	204.12M	-816.00K	281.73M	5.25M	139.40M	29.33M

Scandinavian Enviro Systems AB Technical Analysis

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

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 0.82, above the 50-day MA of 0.83, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 13.56 is Positive, 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
NORB.B	64 Neutral	kr838.53M	35.23	1.98%	―	4.24%	29.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GARO	46 Neutral	kr805.00M	-57.50	-2.59%	―	-9.58%	76.19%
SES	42 Neutral	kr814.16M	-6.78	-20.69%	―	-79.18%	-257.25%