Loop Industries Inc (LOOP)
NASDAQ:LOOP
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Loop Industries
(NASDAQ:LOOP)
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Rating:53Neutral
Price Target:
$1.50
▲(20.00% Upside)
Action:ReiteratedDate:04/03/26
The score is held back primarily by weak financials (ongoing losses, negative equity, and negative cash flow) and limited valuation support (negative P/E). These are partially offset by constructive technical momentum and an earnings-call outlook showing tangible project/contract progress, though near-term funding needs remain a key risk.
Positive Factors
Very high gross margins
An exceptionally high TTM gross margin (~96%) indicates Loop's depolymerization process yields strong unit economics at the production level. Durable gross margins mean fixed-cost leverage can convert modest revenue growth into material profitability as plants scale and engineering milestones transition to steady resin/royalty flows.
Negative Factors
Negative equity / weak balance sheet
Negative shareholders' equity and debt exceeding assets indicate a materially weakened capital base. This structural imbalance reduces financial flexibility, raises refinancing or covenant risk, and can impair the company's ability to fund project equity contributions or absorb setbacks without significant external capital or dilutive financings.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins
An exceptionally high TTM gross margin (~96%) indicates Loop's depolymerization process yields strong unit economics at the production level. Durable gross margins mean fixed-cost leverage can convert modest revenue growth into material profitability as plants scale and engineering milestones transition to steady resin/royalty flows.
Read all positive factors
Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.22M
Dividend YieldN/A
Average Volume (3M)133.63K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth11013.00%
EPS Growth39.85%
CountryUS
Employees50
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.06
Shares Outstanding48,337,555
10 Day Avg. Volume164,814
30 Day Avg. Volume133,635
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)172.45
Price to Sales (P/S)5.81
P/FCF Ratio-24.62
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue6.79
Enterprise Value/Gross Profit7.06
Enterprise Value/Ebitda-109.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.26
Revenue Forecast (FY)$3.01M
Loop Industries Business Overview & Revenue Model
Company Description
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It polymerized monomers into virgin-quality PET resins for use in food-grade pla...
How the Company Makes Money
Loop Industries’ intended revenue model centers on monetizing its PET depolymerization technology through a combination of (a) technology licensing/royalty-type arrangements and (b) participation in, and potential earnings from, the development an...
Loop Industries Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational progress: a flagship India project on budget and on schedule, a marquee offtake with Nike, a European licensing deal with site selection advancing, engineering revenue to support corporate expenses, and significant CapEx improvements via modularization. However, the company faces near-term liquidity pressure ($7.7M cash), an outstanding ~$28M equity funding requirement for India, and remaining offtake and site finalizations to fully de-risk operations. On balance the operational and commercial milestones reported materially improve the company's outlook, but successful execution depends on completing financing and contracting over the next several months.Positive Updates
India Facility On Budget and On Schedule
Infinite Loop India 70,000 MT facility is proceeding to construction, with detailed engineering underway (Toyo engaged Nov 1) and construction completion targeted for Q4 2027. Company states project is on budget and on schedule.
Negative Updates
Limited Liquidity on Hand
Total liquidity at quarter-end was $7.7M and management noted this will continue to decrease in coming quarters, indicating a near-term funding need to sustain operations and complete planned investments.
Read all updates
Q3-2026 Updates
Positive
Negative
India Facility On Budget and On Schedule
Infinite Loop India 70,000 MT facility is proceeding to construction, with detailed engineering underway (Toyo engaged Nov 1) and construction completion targeted for Q4 2027. Company states project is on budget and on schedule.
Read all positive updates
Company Guidance
Management guided that the 70,000‑ton Infinite Loop India plant is on budget and on schedule (detailed engineering with Toyo began Nov. 1; construction targeted complete in Q4 2027), with debt syndication progressing toward closing “in the coming months” on a ~$130 million project debt package and Loop’s equity contribution to the JV of approximately $28 million; a licensed 70,000‑ton European plant (site selection narrowed to three, one lead German site expected to be finalized end‑Jan/early‑Feb) will generate engineering/milestone revenues over the next three years expected to cover corporate back‑office costs for several years. Additional metrics cited: Q3 cash operating expenses of $2.2 million (down $1.1 million YoY), total liquidity of $7.7 million at quarter‑end (expected to decline), a ~5% royalty to Loop, an India plant payback of under three years, a corporate site capacity of 170,000 tons (with room to add ~100,000 tons), third‑party identification of >500,000 metric tons of textile waste in India, regulatory timing (rules introduced 2026, enforcement 2028), and market context of ~85 million tons/year of PET/polyester (66% from textiles); management also disclosed a multi‑year, fixed‑price, fixed‑quantity Nike supply contract with a take‑or‑pay element.Loop Industries Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Feb 2024 | Feb 2023 | Feb 2022 | May 2021 | Feb 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.15M | 10.89M | 153.00K | 172.84K | 0.00 | 0.00 |
| Gross Profit | 10.73M | 10.37M | -382.00K | -377.28K | -548.23K | -775.67K |
| EBITDA | -694.00K | -13.91M | -20.36M | -20.56M | -44.22M | -35.49M |
| Net Income | -2.71M | -15.06M | -21.09M | -21.30M | -44.92M | -36.34M |
Balance Sheet | ||||||
| Total Assets | 11.29M | 18.58M | 20.55M | 40.56M | 59.22M | 43.40M |
| Cash, Cash Equivalents and Short-Term Investments | 5.20M | 12.97M | 6.96M | 29.59M | 44.06M | 35.22M |
| Total Debt | 14.69M | 3.08M | 3.32M | 3.30M | 3.38M | 2.45M |
| Total Liabilities | 18.61M | 18.21M | 6.41M | 6.82M | 13.23M | 10.58M |
| Stockholders Equity | -7.32M | 367.00K | 14.14M | 33.74M | 45.99M | 32.82M |
Cash Flow | ||||||
| Free Cash Flow | -404.00K | -2.57M | -23.68M | -35.93M | -48.10M | -24.82M |
| Operating Cash Flow | -858.00K | -2.12M | -18.03M | -34.89M | -42.98M | -22.49M |
| Investing Cash Flow | -3.11M | -2.04M | -5.64M | 21.28M | -5.11M | -2.98M |
| Financing Cash Flow | 8.74M | 10.32M | -75.00K | 1.01M | 56.99M | 26.60M |
Loop Industries Technical Analysis
Neutral
1.25
Price Trends
1.33
Positive
1.20
Positive
1.37
Negative
Market Momentum
0.02
Positive
49.69
Neutral
19.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOOP, the sentiment is Neutral. The current price of 1.25 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.33, and below the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $1.08B | -5.45 | -15.81% | ― | -12.07% | -821.68% | |
53 Neutral | $66.22M | -4.53 | 71.64% | ― | 11013.00% | 39.85% | |
51 Neutral | $76.70M | -597.73 | 0.02% | 1.33% | -0.97% | -99.67% | |
50 Neutral | $485.64M | -13.83 | 0.26% | ― | 675.75% | 42.00% | |
46 Neutral | $67.38M | ― | 4.98% | ― | 0.18% | -54.25% |
* Basic Materials Sector Average
LOOP
Loop Industries
1.37
0.28
25.69%
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1.54
41.07%
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15.41
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342.82%
NTIC
Northern Technologies International
8.08
1.09
15.68%
CNEY
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0.49
-2.40
-83.03%
Loop Industries Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Loop Industries appoints Spencer Hart as new CFO
Positive
Jan 8, 2026
On January 4, 2026, Loop Industries’ board appointed veteran investment banker Spencer Hart as chief financial officer and principal financial and accounting officer, effective January 15, 2026, while he continues to serve as a director. Har...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.