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Loop Industries Inc (LOOP)
NASDAQ:LOOP
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Loop Industries
(NASDAQ:LOOP)
38Underperform
Loop Industries (LOOP) vs. S&P 500 (SPY)
Market Cap
$49.05M
Dividend YieldN/A
Average Volume (3M)43.78K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth5.45%
EPS Growth-155.56%
CountryUS
Employees50
SectorBasic Materials
Sector Strength64
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.57
Shares Outstanding47,620,262
10 Day Avg. Volume25,688
30 Day Avg. Volume43,783
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)457.31
Price to Cash Flow (P/CF)-7.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.80Price Target Upside480.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Loop Industries Business Overview & Revenue Model
Company DescriptionLoop Industries, Inc. is a technology company specializing in sustainable plastics solutions. The company is headquartered in Quebec, Canada, and operates within the environmental services and chemicals sectors. Loop Industries focuses on developing and commercializing innovative technologies that enable the production of high-quality, sustainable polyethylene terephthalate (PET) plastic from 100% recycled materials. Their proprietary process aims to reduce plastic waste and environmental impact by transforming waste PET and polyester fiber into virgin-quality PET resin that can be used to manufacture new plastic products, such as packaging, textiles, and consumer goods.
How the Company Makes MoneyLoop Industries generates revenue primarily through partnerships and licensing agreements with companies in the consumer goods, food and beverage, and textile industries. These partners utilize Loop's revolutionary depolymerization technology to produce sustainable PET resin. Loop Industries earns money by selling the recycled PET resin to manufacturers who are looking to incorporate sustainable materials into their products. Additionally, Loop may generate income from strategic alliances or joint ventures that further expand its technology's adoption across various sectors. The company also benefits from growing global demand for eco-friendly packaging solutions, as businesses and consumers increasingly prioritize sustainability.
Loop Industries Financial Statement Overview
Summary
Loop Industries is facing severe financial challenges, with declining revenues, persistent losses, and negative equity. Cash flow issues further complicate its financial health, indicating an urgent need for strategic financial restructuring or operational turnaround. Without significant changes, the company's sustainability is at risk.Income Statement
Loop Industries has shown a consistent decline in revenue, with the most recent TTM revenue at $74,000 compared to $153,000 in the previous annual report. Gross Profit Margin is negative, indicating that cost of goods sold exceeds revenue. Net Profit Margin is also deeply negative, driven by substantial net losses. The company struggles with profitability, as evidenced by negative EBIT and EBITDA margins.20
Very Negative
Balance Sheet
The balance sheet reveals a negative stockholders' equity, indicating liabilities exceed assets, which is a significant red flag. The Debt-to-Equity ratio cannot be calculated due to negative equity, further highlighting financial instability. Return on Equity is negative, reflecting poor returns generated on shareholders' investment.15
Very Negative
Cash Flow
Operating cash flow has been consistently negative, showing the company isn't generating cash from its core operations. The Free Cash Flow is also negative, indicating challenges in covering capital expenditures. The negative Free Cash Flow to Net Income ratio suggests the company’s inability to convert net income into cash.25
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 126.00K | 153.00K | 172.84K | 0.00 | 0.00 | 2.22M | Gross Profit |
| -275.00K | 153.00K | -377.28K | -548.23K | -775.67K | 1.39M | EBIT |
| -15.25M | -21.21M | -38.14M | -42.14M | -30.88M | -12.26M | EBITDA |
| -26.39M | -20.36M | -20.56M | -44.22M | -30.23M | -11.48M | Net Income Common Stockholders |
| -27.03M | -21.09M | -42.41M | -45.07M | -36.46M | -16.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.03K | 6.96M | 29.59M | 44.06M | 35.22M | 33.72M | Total Assets |
| 5.03K | 20.55M | 40.56M | 59.22M | 43.40M | 42.84M | Total Debt |
| 0.00 | 3.32M | 3.30M | 3.38M | 2.45M | 2.29M | Net Debt |
| -5.03K | -3.64M | -26.29M | -40.68M | -32.77M | -31.43M | Total Liabilities |
| 8.86K | 6.41M | 6.82M | 13.23M | 10.58M | 4.37M | Stockholders Equity |
| -3.83K | 14.14M | 33.74M | 45.99M | 32.82M | 38.46M |
| Cash Flow | Free Cash Flow | ||||
| -12.10M | -23.68M | -35.93M | -48.10M | -24.82M | -11.63M | Operating Cash Flow |
| -11.91M | -18.03M | -34.89M | -42.98M | -22.49M | -9.09M | Investing Cash Flow |
| -277.00K | -5.64M | 21.28M | -5.11M | -2.98M | -3.39M | Financing Cash Flow |
| 2.28M | -75.00K | 1.01M | 56.99M | 26.60M | 40.46M |
Loop Industries Technical Analysis
Negative
1.00
Price Trends
1.20
Negative
1.24
Negative
1.47
Negative
Market Momentum
-0.02
Positive
40.04
Neutral
32.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOOP, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.20, and below the 200-day MA of 1.47, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 32.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOOP.
Loop Industries Risk Analysis
Loop Industries disclosed 28 risk factors in its most recent earnings report. Loop Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Loop Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.59B | 11.34 | 17.62% | ― | 26.75% | 55.24% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% | |
43 Neutral | $1.18B | ― | -90.88% | ― | -29.45% | -10.79% | |
39 Underperform | $251.59M | ― | -15.02% | ― | -1.66% | -18.31% | |
39 Underperform | $10.49M | ― | 127.81% | ― | -9.48% | 15.03% | |
38 Underperform | $49.05M | ― | -449.80% | ― | 5.45% | -155.56% |
* Basic Materials Sector Average
Performance Comparison
LOOP
Loop Industries
1.00
-1.91
-65.64%
FSLR
First Solar
136.23
-38.37
-21.98%
GEVO
Gevo
1.03
0.28
37.33%
PLUG
Plug Power
1.22
-1.92
-61.15%
PURE
Pure Bioscience
0.07
>-0.01
-12.50%
Loop Industries Earnings Call Summary
Earnings Call Date: Jan 14, 2025 | % Change Since: -15.97% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive, with significant milestones achieved such as the completion of the Reed transaction and progress in the India joint venture. However, there were some challenges, including the equipment write-down and the cancellation of the SK joint venture. Overall, the company is focusing on strategic partnerships and reducing operating costs.Highlights
Reed Transaction Finalized
Loop Industries finalized a EUR 20 million financing deal with Societe Generale, including a EUR 10 million convertible preferred security and the first technology license sale to Societe Generale for an Infinite Loop manufacturing facility in Europe.
India Joint Venture Progress
The India joint venture with Ester is progressing well, with land acquisition being finalized and plans to break ground in Q2 2025. The focus on polyester textile waste as feedstock aligns with circular fashion trends.
Reduction in Operating Expenses
Research and development costs decreased by 25% to $1.38 million, and G&A expenses reduced by 13% to $2.15 million, primarily due to lower insurance claims.
Introduction of Engineering Services Revenue Stream
Loop Industries has begun generating revenue from engineering services, providing engineering packages and services as part of its licensing strategy.
Lowlights
Write-down of Polymerization Equipment
A write-down of polymerization equipment, originally intended for the Ulsan project, was necessary due to accounting principles, though the equipment remains in good condition for future use.
Cancellation of SK Joint Venture
The joint venture with SK in South Korea was canceled due to misalignment with Loop's strategy of investing in low-cost manufacturing countries. South Korea was deemed a high-cost market.
Financial Strain on SK Affects Partnership
SK Innovation faced financial difficulties due to investments in the electric car battery industry, leading to a change in priorities and impacting Loop's joint venture.
Company Guidance
During the Loop Industries Q3 2025 earnings call, significant guidance was provided regarding their strategic milestones and financial outlook. The key highlight included the completion of a EUR 20 million financing deal with Societe Generale, comprising EUR 10 million in convertible preferred securities. Additionally, they secured their first technology license sale to Societe Generale, which provides an initial EUR 10 million payment with two more milestone payments anticipated by the end of 2025 or 2026. Loop's CEO, Daniel Solomita, emphasized the strategy of licensing technology in high-cost manufacturing regions like Europe and parts of Asia, while focusing on low-cost regions such as India for capital investments. The India joint venture is progressing, with plans to break ground in Q2 2025, supported by a detailed project report and debt syndication by KPMG. On the financial front, Loop reported a 25% reduction in R&D costs to $1.38 million and a 13% decrease in G&A expenses to $2.15 million. The quarterly cash burn rate stood at $2.8 million, with full-year expenses projected to reduce to $10 million. The company also announced the termination of their joint venture with SK due to high costs, as they pivot towards licensing opportunities.Loop Industries Corporate Events
Executive/Board Changes
Loop Industries Appoints Spencer Hart to Board
Neutral
Feb 13, 2025
On February 10, 2025, Loop Industries, Inc. appointed Mr. Spencer Hart to its Board of Directors. Mr. Hart, an experienced investment banker with over 30 years in capital markets, will be compensated according to the company’s director compensation policy and has been granted restricted stock units that vest within a year. His election is not based on any pre-existing arrangements or interests with the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.