tiprankstipranks
Trending News
More News >
Loop Industries Inc (LOOP)
NASDAQ:LOOP
Advertisement

Loop Industries (LOOP) AI Stock Analysis

Compare
252 Followers

Top Page

LOOP

Loop Industries

(NASDAQ:LOOP)

Rating:55Neutral
Price Target:
$1.50
▲(10.29%Upside)
Loop Industries' overall score is primarily influenced by significant profitability and leverage challenges, balanced by strategic project progress and cost management improvements. Technical indicators and valuation suggest moderate risk, while positive sentiment from the earnings call provides some confidence in future potential.

Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)

Loop Industries Business Overview & Revenue Model

Company DescriptionLoop 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 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:Jul 15, 2025
(Q1-2026)
|
% Change Since: 10.57%|
Next Earnings Date:Oct 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook overall, with significant progress and achievements in strategic projects, cost management, and partnerships with global brands. However, there are notable challenges regarding funding gaps and potential risks in project timelines and execution.
Q1-2026 Updates
Positive Updates
Progress in Infinite Loop Manufacturing Facilities
Significant strides made towards groundbreaking of Infinite Loop manufacturing facilities in India and Europe, with strong local JV partnerships and advanced stages in strategic development.
Cost-Effective Manufacturing
CapEx for Loop's technology is significantly low at $0.61 per pound, making it competitive in global markets. Modularization further reduces CapEx by 50% for projects.
Strong Financial Management
Cash operating expenses reduced by 46% year-over-year, demonstrating disciplined expense management.
Partnership with Global Brands
Ongoing discussions for off-take agreements with leading global apparel and CPG brands, enhancing Loop's market position.
Engineering and Licensing Revenues
Engineering contract with Indian JV for $1.5 million and anticipated licensing fees and milestone payments from European projects.
Negative Updates
Requirement for Additional Funding
A $15 million funding gap exists for Loop's equity contribution to the India facility, requiring additional financing solutions.
Potential Timing Risks
Concerns over potential delays in facility construction and off-take agreement execution, which could impact project timelines.
Dependence on Modularization
Success heavily reliant on modularization, which, while promising, introduces new project execution risks.
Company Guidance
During Loop Industries' First Quarter Fiscal 2026 Corporate Update Call, several key metrics and guidance were discussed. The company is advancing its Infinite Loop manufacturing facilities in India and Europe, with groundbreaking expected by the end of 2027. In India, the project has a confirmed $176 million CapEx, which includes land acquisition, financing costs, and a polymerization unit, while the core technology installation costs $95 million. The facility aims to produce high-quality PET resin from 100% recycled content at competitive prices, leveraging India's low-cost structure. Loop anticipates strong cash flow and attractive economic returns, with a 50% joint venture ownership stake. They secured a $1.5 million engineering contract for the Indian project. Additionally, Loop reported a 46% reduction in Q1 cash operating expenses to $2.6 million and ended the quarter with $12.3 million in available liquidity. The company aims to secure $25 million in equity for the Indian facility, with a $15 million funding gap to be addressed through government funding and new capital. Loop is also exploring modularization for cost savings and has begun site selection in Gujarat, India, and Western Europe.

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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.89M153.00K172.84K0.000.00
Gross Profit10.37M153.00K-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 Assets18.58M20.55M40.56M59.22M43.40M
Cash, Cash Equivalents and Short-Term Investments12.97M6.96M29.59M44.06M35.22M
Total Debt3.08M3.32M3.30M3.38M2.45M
Total Liabilities18.21M6.41M6.82M13.23M10.58M
Stockholders Equity367.00K14.14M33.74M45.99M32.82M
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-5.64M21.28M-5.11M-2.98M
Financing Cash Flow10.32M-75.00K1.01M56.99M26.60M

Loop Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.36
Price Trends
50DMA
1.32
Positive
100DMA
1.21
Positive
200DMA
1.27
Positive
Market Momentum
MACD
-0.02
Negative
RSI
54.18
Neutral
STOCH
50.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOOP, the sentiment is Positive. The current price of 1.36 is above the 20-day moving average (MA) of 1.25, above the 50-day MA of 1.32, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$75.42M26.494.18%2.77%3.46%-34.80%
67
Neutral
$71.46M26.016.19%-3.23%-2.01%
56
Neutral
$359.34M-16.11%145.38%-22.02%
55
Neutral
$60.13M-406.97%8400.76%31.02%
52
Neutral
$91.11M-24.43%-17.27%-112.62%
44
Neutral
C$979.11M-6.82-13.73%1.75%17.37%-32.84%
$8.06M-14.01%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LOOP
Loop Industries
1.36
-0.48
-26.09%
FSI
Flexible Solutions International
4.78
2.79
140.20%
GEVO
Gevo
1.47
0.88
149.15%
NTIC
Northern Technologies International
7.94
-5.14
-39.30%
ALTO
Alto Ingredients
1.18
-0.38
-24.36%
CNEY
CN Energy Group
2.59
-6.17
-70.43%

Loop Industries Corporate Events

Executive/Board ChangesShareholder Meetings
Loop Industries Holds 2025 Annual Stockholders Meeting
Neutral
Jul 23, 2025

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.

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.

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.Date of analysis: Jul 26, 2025