Scandinavian Enviro Systems AB (publ) (SES.ST) Stock Analysis & Winston Score

Scandinavian Enviro Systems is a Swedish company that recycles old tires. Instead of burning or burying used tires, it breaks them down using heat in a process called pyrolysis, turning them into reusable materials like carbon black, oil, steel, and gas. Its main customers are industrial companies that buy these recovered materials, and it operates in the waste management and circular economy space. The company earns money by selling the recovered materials produced from tire recycling, but it is still in an early commercial stage and is not yet profitable, as shown by its deeply negative margins. It is based in Sweden and has been working with partners, including Michelin, to scale up its technology across Europe. The biggest challenge ahead is reaching a production scale large enough to cover its costs, since the business currently spends far more than it earns and will need significant capital and operational progress to become financially sustainable.