Loop Industries (LOOP) AI Stock Analysis

• Market Cap: $75.39M
• Dividend Yield: N/A
• Average Volume (3M): 112.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 8400.76%
• EPS Growth: 31.02%
• Country: US
• Employees: 50
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.07
• Shares Outstanding: 47,718,350
• 10 Day Avg. Volume: 115,944
• 30 Day Avg. Volume: 112,557
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 5.96
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: -5.43
• 1Y Price Target: $3.00
• Price Target Upside: 89.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $1.50 ▼(-5.06% Downside)

Loop Industries' overall score reflects significant financial challenges, including negative equity and profitability issues, despite positive revenue growth. Technical indicators show a positive trend, while strategic initiatives and partnerships provide optimism. However, valuation concerns and project execution risks weigh on the score.

Loop Industries Business Overview & Revenue Model

Company Description

Loop Industries, Inc. is a sustainable technology company focused on developing innovative solutions for recycling polyester and producing high-quality, sustainable PET (polyethylene terephthalate) plastic. Operating in the environmental sustainability sector, Loop Industries aims to reduce plastic waste and reliance on virgin fossil fuels by utilizing its proprietary technology to transform waste PET and other types of plastics into high-purity recycled PET. The company primarily serves the consumer goods, packaging, and textile industries, offering sustainable alternatives to traditional plastic products.

How the Company Makes Money

Loop Industries generates revenue primarily through the licensing of its advanced recycling technology and the sale of high-quality recycled PET resin. The company partners with manufacturers and brands in various sectors, allowing them to use Loop's patented processes to produce sustainable products. Key revenue streams include agreements with consumer product companies that require sustainable packaging solutions, collaborations with textile manufacturers seeking recycled fibers, and potential joint ventures that enhance their recycling capabilities. Additionally, Loop's strategic partnerships with major industry players contribute to its earnings by expanding its market reach and facilitating the adoption of its technology across different sectors.

Loop Industries Financial Statement Overview

Summary

Loop Industries is facing significant financial challenges, with consistent profitability issues and a high leverage risk on the balance sheet. Despite growth in revenue, negative net income and cash flow concerns are prevalent. Improving cost management and revenue growth are crucial for future stability.

Income Statement

Loop Industries shows a significant increase in revenue from the previous years, indicating growth potential. However, persistent negative net income and EBIT margin indicate ongoing profitability challenges. The recent improvement in gross profit margin is a positive sign, but the company remains unprofitable.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio due to low equity levels, posing financial risk. A decreasing equity ratio indicates potential financial instability. However, the company maintains a reasonable level of cash and short-term investments relative to its debt obligations, which is a positive factor.

Cash Flow

Despite a reduction in negative free cash flow, Loop Industries continues to experience cash flow challenges, highlighted by negative operating cash flow. The high operating cash flow to net income ratio indicates some efficiency in converting revenue to operating cash, but overall cash flow remains a concern.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.89M	153.00K	172.84K	0.00	0.00
Gross Profit	10.37M	153.00K	-377.28K	-548.23K	-775.67K
EBITDA	-13.91M	-20.36M	-20.56M	-44.22M	-30.23M
Net Income	-15.06M	-21.09M	-42.41M	-45.07M	-36.46M
Balance Sheet
Total Assets	18.58M	20.55M	40.56M	59.22M	43.40M
Cash, Cash Equivalents and Short-Term Investments	12.97M	6.96M	29.59M	44.06M	35.22M
Total Debt	3.08M	3.32M	3.30M	3.38M	2.45M
Total Liabilities	18.21M	6.41M	6.82M	13.23M	10.58M
Stockholders Equity	367.00K	14.14M	33.74M	45.99M	32.82M
Cash Flow
Free Cash Flow	-2.57M	-23.68M	-35.93M	-48.10M	-24.82M
Operating Cash Flow	-2.12M	-18.03M	-34.89M	-42.98M	-22.49M
Investing Cash Flow	-2.04M	-5.64M	21.28M	-5.11M	-2.98M
Financing Cash Flow	10.32M	-75.00K	1.01M	56.99M	26.60M

Loop Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.58 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.60, and above the 200-day MA of 1.32, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 6.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOOP.

Loop Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSI	72 Outperform	120.36M	40.76	7.73%	―	-1.52%	6.38%
NTIC	68 Neutral	73.90M	25.96	7.60%	2.05%	3.46%	-34.80%
GEVO	56 Neutral	498.19M	-8.35	-12.31%	―	341.75%	20.16%
LOOP	54 Neutral	$75.39M	―	-406.97%	―	8400.76%	31.02%
ALTO	42 Neutral	84.36M	-1.18	-32.15%	―	-12.70%	-74.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Loop Industries Corporate Events

Loop Industries Expands with New Facility in India

On August 13, 2025, Loop Industries‘ joint venture, Ester Loop Infinite Technologies Private Limited, signed an agreement to acquire 93 acres of land in Gujarat, India, for an Infinite Loop™ manufacturing facility. The agreement involves land consolidation, title transfer, and necessary governmental approvals, with a purchase price of 9,072,000 Indian rupees per acre. The project aims to enhance Loop Industries’ operational capacity and strengthen its market position in sustainable recycling technologies.

Loop Industries Holds 2025 Annual Stockholders Meeting

On July 18, 2025, Loop Industries, Inc. held its 2025 Annual Meeting of Stockholders virtually, where several key decisions were made. The stockholders elected five directors to the Board and appointed Daniel Solomita as a director through a special vote. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending February 28, 2026, was ratified. The stockholders also approved the compensation of the company’s named executive officers and decided that future advisory votes on executive compensation will occur annually.

Loop Industries Announces At the Market Offering

On July 3, 2025, Loop Industries entered into an At the Market Offering Agreement with Roth Capital Partners, allowing the company to sell up to $15 million of its common stock through the sales agent. This strategic move, facilitated by a shelf registration statement effective since September 2024, aims to enhance the company’s financial flexibility and market presence, although there is no obligation to sell a specific amount of shares.