Scandinavian Enviro Systems AB (SES) AI Stock Analysis

• Market Cap: kr129.96M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.17
• 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: 44 Neutral
• Price Target: kr0.11 ▼(-86.27% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by weak and volatile financial performance, including a sharp profitability reversal in 2025 and ongoing negative free cash flow. Technicals reinforce the risk with strong bearish momentum and the price far below key moving averages. Valuation offers limited support given negative earnings (negative P/E) and no dividend yield.

Positive Factors

Proprietary tyre pyrolysis technology

SES owns a proprietary tyre pyrolysis process and licenses it to plant operators, giving the company technology-led differentiation. A licensing model can scale faster than asset ownership, enabling recurring fees and know‑how monetization that support durable revenue streams if commercial adoption continues.

Conservative balance sheet with low leverage

Very low leverage and sizable equity provide a financial cushion during cyclical or execution setbacks. This conservatism supports project development and ordering flexibility, reduces insolvency risk, and increases runway for licensing and project support activities over multiple quarters to years.

Diversified commercial revenue model

SES’s mix of licensing, engineering/project services and potential royalties creates multiple durable monetization channels. Licensing scales with partners, services generate upfront fees tied to deployments, and royalties allow recurring income aligned with plant operations, diversifying cash sources long term.

Negative Factors

Highly volatile profitability and execution risk

A one-year profit surrounded by recurring losses signals inconsistent commercial execution or project timing. Volatile margins and abrupt profit swings impair management’s ability to plan, secure long-term contracts, and demonstrate a repeatable business model, increasing structural revenue and earnings risk.

Persistent negative free cash flow and cash burn

Repeated negative free cash flow forces reliance on external funding to sustain operations and deploy projects, limiting self-funding capacity. Persistent cash burn increases refinancing risk, can dilute stakeholders, and constrains the company’s ability to scale licensing and plant-support activities sustainably.

Steep declines in revenue and EPS growth

Very large negative revenue and EPS growth indicate material setbacks in sales, project deliveries, or market acceptance. Such steep declines reduce bargaining power with partners, complicate commercialization of the technology, and make multi-quarter recovery dependent on successful execution of new projects.

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 primarily makes money by commercializing its tyre-recycling (pyrolysis) technology. Key revenue streams include: (1) Technology licensing fees paid by customers or project companies that build and operate plants using SES’s process; (2) Engineering, project development, and related service revenues tied to designing, supporting, and commissioning plants; (3) Ongoing royalties or similar recurring payments linked to plant operations where contracts specify performance- or volume-based compensation; and (4) In some cases, income associated with participation in or collaboration with plant-owning entities (e.g., through structured partnerships or joint project arrangements) when such structures are used. If and when SES (or affiliated project entities) is involved in selling recovered products, earnings can also be influenced by market demand and pricing for outputs such as recovered carbon black and other recovered fractions, as well as by partnerships with industrial off-takers; specific contract terms, counterparties, and the materiality of each stream are not available here and are therefore null.

Scandinavian Enviro Systems AB Financial Statement Overview

Summary

Overall financials are weak despite a strong balance sheet. Income statement results are highly volatile with a sharp swing from profitability in 2024 to deep losses in 2025 (negative gross/operating/net margins). Cash flow is also pressured with negative operating cash flow in 2025 and consistently negative free cash flow, indicating limited self-funding capacity. Low leverage and sizable equity provide support but do not offset unstable earnings and cash burn.

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: Negative
• 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 0.19, above the 50-day MA of 0.50, and above the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 27.11 is Positive, neither overbought nor oversold. The STOCH value of 29.88 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	kr672.54M	28.32	2.34%	―	4.24%	29.69%
EOLU.B	49 Neutral	kr917.16M	-3.09	18.63%	5.62%	―	―
GARO	47 Neutral	kr586.00M	-48.91	-2.59%	―	-9.58%	76.19%
SES	44 Neutral	kr129.96M	-2.12	-20.69%	―	-79.18%	-257.25%