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Loop Industries Inc (LOOP)
NASDAQ:LOOP
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Loop Industries
(NASDAQ:LOOP)
Rating:45Neutral
Price Target:
$1.00
▼(-16.67%Downside)
Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.26M
Dividend YieldN/A
Average Volume (3M)320.05K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth7064.47%
EPS Growth28.67%
CountryUS
Employees50
SectorBasic Materials
Sector Strength70
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.14
Shares Outstanding47,718,350
10 Day Avg. Volume237,427
30 Day Avg. Volume320,051
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)224.32
Price to Sales (P/S)0.00
P/FCF Ratio-38.92
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue6.21
Enterprise Value/Gross Profit6.74
Enterprise Value/Ebitda-0.84
Forecast
1Y Price Target
$3.00Price Target Upside150.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Loop Industries Business Overview & Revenue Model
Company DescriptionLoop Industries, Inc. is a technology company dedicated to accelerating the world's shift to sustainable plastic by using its proprietary technology to transform waste PET plastic and polyester fiber into high-purity, virgin-quality PET resin. Operating in the environmental services sector, Loop Industries aims to address the global plastic waste crisis by providing innovative solutions that enable a circular economy for plastics.
How the Company Makes MoneyLoop Industries generates revenue primarily through the commercialization of its patented depolymerization technology, which allows the company to recycle waste PET plastic into high-quality PET resin. The company earns money by selling this resin to packaging manufacturers and consumer goods companies that require sustainable materials for their products. Loop Industries may also enter into strategic partnerships and licensing agreements with other companies in the plastics and recycling industry, providing additional revenue streams through technology licensing fees and joint ventures. These partnerships can significantly enhance Loop's market reach and operational capabilities, contributing to its overall revenue.
Loop Industries Earnings Call Summary
Earnings Call Date:May 30, 2025
(Q3-2025)
| % Change Since: 14.29%|
Next Earnings Date:Jul 09, 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.Q3-2025 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
Loop Industries is showing revenue growth, but persistent unprofitability and high leverage pose significant financial challenges. Improvements in gross profit margin and cash management are positive signs, but overall financial health remains weak due to negative net income and cash flow issues.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.35
Negative
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.40
Negative
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.30
Negative
| 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
Negative
1.20
Price Trends
1.26
Negative
1.21
Negative
1.30
Negative
Market Momentum
<0.01
Positive
39.71
Neutral
37.25
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 1.2 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.26, and below the 200-day MA of 1.30, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $78.45M | 21.49 | 5.51% | 0.48% | 2.11% | -17.52% | |
65 Neutral | $70.07M | 30.14 | 6.19% | ― | -3.23% | -2.01% | |
57 Neutral | £2.72B | 4.90 | -9.97% | 3.95% | -1.19% | -6.71% | |
53 Neutral | $359.34M | ― | -16.11% | ― | 145.38% | -22.02% | |
53 Neutral | $95.74M | ― | -24.43% | ― | -17.27% | -112.62% | |
45 Neutral | $57.26M | ― | -207.57% | ― | 7064.47% | 28.67% |
* Basic Materials Sector Average
Performance Comparison
LOOP
Loop Industries
1.20
-0.83
-40.89%
FSI
Flexible Solutions International
5.54
3.77
212.99%
GEVO
Gevo
1.50
0.94
167.86%
NTIC
Northern Technologies International
8.28
-7.77
-48.41%
ALTO
Alto Ingredients
1.24
-0.21
-14.48%
Loop Industries Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Loop Industries Announces At the Market Offering
Neutral
Jul 3, 2025
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.
The most recent analyst rating on (LOOP) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Loop Industries stock, see the LOOP Stock Forecast page.
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.