Loop Industries (LOOP) AI Stock Analysis

• Market Cap: $75.91M
• Dividend Yield: N/A
• Average Volume (3M): 133.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 11013.00%
• EPS Growth: 39.85%
• Country: US
• Employees: 50
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.07
• Shares Outstanding: 48,043,068
• 10 Day Avg. Volume: 164,814
• 30 Day Avg. Volume: 133,635
• PEG Ratio: 0.15
• Price to Book (P/B): 172.45
• Price to Sales (P/S): 5.81
• P/FCF Ratio: -24.62
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 7.05
• Enterprise Value/Gross Profit: 7.35
• Enterprise Value/Ebitda: -7.87
• 1Y Price Target: $4.55
• Price Target Upside: 337.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-3.85% Downside)

Loop Industries faces significant financial challenges, with negative equity and profitability issues being the most critical factors. However, recent corporate agreements offer potential for future growth. Technical indicators suggest bearish momentum, and valuation metrics highlight ongoing financial struggles.

Positive Factors

Revenue Growth

Strong revenue growth suggests increasing demand for Loop's sustainable solutions, supporting long-term business expansion and market penetration.

Strategic Partnerships

This partnership enhances Loop's market reach and revenue potential by securing a stable demand for its products, fostering long-term growth.

Joint Venture in Europe

The joint venture expands Loop's footprint in Europe, leveraging local expertise and resources to boost operational capacity and market presence.

Negative Factors

Negative Equity

Negative equity reflects financial instability, limiting Loop's ability to finance growth and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues hinder Loop's ability to reinvest in its business, potentially affecting its competitive position and long-term viability.

Negative Free Cash Flow

Negative free cash flow limits Loop's financial flexibility, constraining its ability to fund new projects and manage debt sustainably.

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 plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.

How the Company Makes Money

Loop Industries generates revenue through the licensing of its proprietary technology to partners in the plastics and recycling industries, enabling them to produce sustainable PET products. The company also earns income from the sale of its depolymerized PET materials to manufacturers seeking sustainable raw materials for their products. Key revenue streams include licensing fees, sales of recycled PET, and potential joint ventures with strategic partners who are looking to integrate Loop's technology into their operations. Additionally, Loop has formed significant partnerships with major corporations in the consumer goods and packaging sectors, which enhances its market presence and drives revenue growth by facilitating the adoption of its sustainable materials.

Loop Industries Financial Statement Overview

Summary

Loop Industries shows positive revenue growth but faces significant profitability and leverage challenges. Negative equity and free cash flow highlight financial risks, though improvements in revenue and operating cash flow offer some optimism.

Income Statement

The income statement shows a significant improvement in total revenue from previous periods, indicating positive revenue growth. However, the company is still experiencing substantial negative EBIT and net income, resulting in negative profit margins, which highlights ongoing profitability challenges.

Balance Sheet

The balance sheet indicates high leverage with negative stockholders' equity, leading to a negative equity ratio. The debt-to-equity ratio is concerning due to negative equity, and the company's financial stability is at risk with liabilities exceeding assets.

Cash Flow

Cash flow analysis reveals a moderate improvement in operating cash flow relative to net income, suggesting better cash management. However, free cash flow remains negative, indicating continued challenges in generating sufficient cash from operations to cover capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.11M	10.89M	153.00K	172.84K	0.00	0.00
Gross Profit	10.66M	10.37M	-382.00K	-377.28K	-548.23K	-775.67K
EBITDA	-9.95M	-13.91M	-20.36M	-20.56M	-44.22M	-35.49M
Net Income	-11.68M	-15.06M	-21.09M	-21.30M	-44.92M	-36.34M
Balance Sheet
Total Assets	13.29M	18.58M	20.55M	40.56M	59.22M	43.40M
Cash, Cash Equivalents and Short-Term Investments	7.31M	12.97M	6.96M	29.59M	44.06M	35.22M
Total Debt	464.00K	3.08M	3.32M	3.30M	3.38M	2.45M
Total Liabilities	18.76M	18.21M	6.41M	6.82M	13.23M	10.58M
Stockholders Equity	-5.47M	367.00K	14.14M	33.74M	45.99M	32.82M
Cash Flow
Free Cash Flow	-625.00K	-2.57M	-23.68M	-35.93M	-48.10M	-24.82M
Operating Cash Flow	-950.00K	-2.12M	-18.03M	-34.89M	-42.98M	-22.49M
Investing Cash Flow	-1.84M	-2.04M	-5.64M	21.28M	-5.11M	-2.98M
Financing Cash Flow	8.83M	10.32M	-75.00K	1.01M	56.99M	26.60M

Loop Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.04
• 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 LOOP, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.41, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOOP.

Loop Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$84.79M	47.52	5.08%	―	0.18%	-54.25%
GEVO	55 Neutral	$545.19M	―	-9.27%	―	675.75%	42.00%
GPRE	54 Neutral	$678.10M	―	-22.21%	―	-12.07%	-821.68%
LOOP	47 Neutral	$75.91M	-6.45	―	―	11013.00%	39.85%
NTIC	44 Neutral	$69.68M	4,083.33	0.02%	1.34%	-0.97%	-99.67%

Loop Industries Corporate Events

Loop Industries Forms Joint Venture with Reed Circular

On September 23, 2025, Loop Industries entered into a Securityholders Agreement with Reed Circular Economy to establish governance and operations for their European joint venture, Infinite Loop Europe SAS. The agreement outlines a 90/10 ownership structure favoring RCE, with provisions for project evaluation, financing, and intellectual property rights, and includes a €10 million loan from RCE to fund initial operations.

Loop Industries Secures Multi-Year Supply Agreement

On September 1st, 2025, Loop Industries entered a multi-year agreement to supply its ‘Twist’ polyester resin to a leading sports apparel company, contingent on the operational status of its upcoming Infinite Loop™ India facility.

Loop Industries Signs Offtake Agreement with Taro Plast

On September 8, 2025, Loop Industries entered into an offtake agreement with Taro Plast, an Italian manufacturer of engineering plastics. This agreement will see Loop Industries supplying Taro Plast with recycled materials from its upcoming facility in India, enhancing its market presence and operational capacity.