Scandinavian Enviro Systems AB (SES) AI Stock Analysis

• Market Cap: kr308.46M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.57
• 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: 41 Neutral
• Price Target: kr0.27 ▼(-67.71% Downside)
• Action: Reiterated Date: 03/22/26
• Date: Action: Reiterated 03/22/26

The score is held down primarily by weak and unstable operating performance and persistently negative free cash flow, despite low leverage. Technicals add pressure with a bearish long-term trend and negative MACD. Valuation is also constrained by a negative P/E (loss-making), with no dividend yield data to provide support.

Positive Factors

Conservative balance sheet / low leverage

Very low leverage gives SES structural financial flexibility and a cushion during earnings volatility. This reduces insolvency risk and preserves capacity to fund pilot projects, licensing rollouts, or R&D without immediate reliance on dilution or expensive debt, supporting multi-month execution.

Proprietary pyrolysis technology and licensing model

A proprietary, licensable technology is a durable competitive asset: once proven, it enables scalable, asset-light revenue via licensing, engineering services and royalties. This model can generate recurring, high-margin revenue as more plants deploy the process across markets and partners adopt the technology.

Structural industry tailwind — waste management / recycling demand

Tyre recycling aligns with long-term regulatory and ESG trends toward circular economies and reduced landfill use. Persistent demand for recovered materials and stricter waste rules can sustain demand for SES’s offerings and licensing opportunities over the coming months and years.

Negative Factors

Volatile and weak operating performance

Large swings from recent profit to a sizeable net loss indicate inconsistent execution and unstable margins. This undermines predictability for partners and financiers, complicates multi‑period planning for plant rollouts and weakens the case for scaling the licensing model without operational improvements.

Persistent negative free cash flow

Ongoing negative free cash flow signals structural cash burn and limited self-funding capacity. Over months this forces reliance on external capital or partnerships to fund development and commercialization, increasing dilution or financing risk and slowing sustainable growth execution.

Steep revenue and EPS declines

Very large year-over-year declines in revenue and EPS reflect either acute demand shortfalls or execution issues. Such drastic contraction erodes credibility with customers and off-takers, making multi-month commercial expansion and long-term contract wins harder without demonstrable stabilization.

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

Financials are weak and volatile: 2025 shows a sharp reversal from 2024 profitability to a large net loss with materially negative gross/operating/net margins. Cash flow is pressured with negative operating cash flow in 2025 and negative free cash flow in every year shown, despite a conservatively financed balance sheet with very low leverage.

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: Neutral
• Last Price: 0.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SES, the sentiment is Neutral. The current price of 0.83 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.44, and above the 200-day MA of 0.78, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	kr658.24M	28.32	2.34%	―	4.24%	29.69%
EOLU.B	49 Neutral	kr863.65M	-3.09	18.63%	5.62%	―	―
GARO	47 Neutral	kr543.00M	-48.91	-2.59%	―	-9.58%	76.19%
SES	41 Neutral	kr308.46M	-2.12	-20.69%	―	-79.18%	-257.25%