Company Overview
Eco Wave Power Global AB (publ) specializes in the development of wave energy conversion technology designed to transform ocean and sea waves into clean electricity, alongside maintaining a portfolio of agreements such as power purchase and concession contracts. The enterprise operates within the Utilities sector, specifically classified under the Utilities - Renewable industry, positioning it as a developer of sustainable energy infrastructure dependent on natural marine resources. The company's current scale is characterized by a market capitalization of $33.01M, an annual revenue of $38,000 over the trailing twelve months, and an employee count of 13. These financial figures indicate that the company functions as a micro-cap entity with minimal revenue generation relative to its valuation, suggesting it is in an early-stage or highly speculative phase where market capitalization is driven by potential future utility projects rather than current operational profitability.
Financial Health
Over the trailing twelve months, the company reported a revenue of $38,000, a net income of $-3,697,000, and an EBITDA of $-2,926,000. The substantial gap between the negligible revenue of $38,000 and the significant net loss of $3.7 million reveals a cost structure dominated by high fixed costs or capital expenditures that far exceed current income streams. The free cash flow stands at $-844,875, indicating that the company is burning cash and lacks immediate financial flexibility to fund operations without external financing or asset sales. All three margin metrics reflect this structural deficit: the gross margin is 57.9%, the operating margin is -1631.6%, and the profit margin is 0.0%. While the gross margin suggests that the cost of goods sold is lower than revenue, the negative operating margin of -1631.6% indicates that operating expenses are massively disproportionate to sales, and the 0.0% profit margin confirms that the company has not generated net earnings. Regarding liquidity and leverage, the company holds $6.02M in cash against $1.34M in debt, resulting in a debt-to-equity ratio of 24.39. Despite holding more cash than debt, the high debt-to-equity ratio signals a leveraged balance sheet where equity is minimal relative to debt obligations. The current ratio is 2.49, which indicates that the company possesses more than twice the current assets needed to cover its short-term liabilities, suggesting adequate short-term liquidity on a solvency basis. Return on Equity is -54.0% and Return on Assets is -20.2%, metrics that reveal that management effectiveness has been negative, as the company destroys shareholder value and underutilizes its asset base to generate returns.
Valuation Assessment
The valuation metrics present a complex picture due to the lack of earnings: the trailing P/E ratio is N/A, while the forward P/E is -6.51. The existence of a negative forward P/E implies that the market prices the stock based on expected future earnings that are currently negative, suggesting a trajectory where earnings are anticipated to remain in deficit or that valuation models are relying on theoretical future cash flows rather than historical performance. The price-to-book ratio is 5.83, indicating that the market values the company at nearly six times its book value, which suggests a significant market premium over the net asset value despite the company's losses. Alternative valuation metrics further highlight the disconnect between asset value and market price: the price-to-sales ratio is 868.67, and the EV/EBITDA is -88.70. These figures suggest that the market is pricing the stock based on speculative potential rather than current sales volume or earnings power, as the high P/S ratio reflects a valuation heavily detached from current revenue generation. Regarding price volatility and range, the 52-week high is $9.87 and the 52-week low is $4.41. Given the market cap of $33.01M and the specific valuation metrics provided, the current market capitalization implies a share price context that sits within this range, though the exact current price is not explicitly stated in the provided facts, the beta value of -0.45 indicates that the stock price moves inversely to the broader market with lower volatility than the market average.
Growth & Income
The growth profile of the company is defined by a revenue growth rate of -77.4% year over year, while the earnings growth rate is N/A due to the lack of profitable earnings in the prior period. Since there are no earnings to compare, the decline in revenue does not imply that earnings are growing faster or slower, but rather that the revenue base has contracted significantly, which often exacerbates losses in companies with fixed cost structures. As the company has a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute dividends to shareholders. Instead, the company reinvests its limited earnings—or in this case, relies on cash reserves and external funding—into growth initiatives and technology development rather than paying out income. The overall growth and income profile is one of contraction and reinvestment, where the company prioritizes operational scaling and technology deployment over providing current income or demonstrating positive revenue expansion.