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Loop Industries
(NASDAQ:LOOP)
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Rating:40Underperform
Price Target:
$0.60
▼(-25.00% Downside)
Action:Downgraded
Date:08/20/26
The score is primarily held down by very weak financial performance (deep losses, ongoing cash burn, and negative equity) and bearish technicals (price below all key moving averages with negative MACD). Valuation provides limited support due to negative earnings and no dividend, while corporate events are mixed with strategic progress outweighed by Nasdaq listing compliance risk.
Positive Factors
Strategic Licensing
The agreement creates a defined pathway to commercialize Loop’s technology in India and other territories. Royalty-linked economics could provide recurring revenue if ELITe successfully builds facilities and scales recycled polymer production.
Negative Factors
Persistent Unprofitability
Extremely negative margins and a shrinking revenue base indicate that the business has not yet achieved commercial scale or operating leverage. Sustained losses could limit investment capacity and increase dependence on external funding while projects mature.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic Licensing
The agreement creates a defined pathway to commercialize Loop’s technology in India and other territories. Royalty-linked economics could provide recurring revenue if ELITe successfully builds facilities and scales recycled polymer production.
Read all positive factors
Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.95M
Dividend YieldN/A
Average Volume (3M)133.63K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-96.04%
EPS Growth9.12%
CountryUS
Employees38
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.26
Shares Outstanding48,380,370
10 Day Avg. Volume164,814
30 Day Avg. Volume133,635
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)-6.51
Price to Sales (P/S)121.30
P/FCF Ratio-6.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.00Price Target Upside275.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$1.07M
Loop Industries Business Overview & Revenue Model
Company Description
Loop Industries Inc., a technology firm, specializes in chemically recycling discarded polyethylene terephthalate (PET) plastics and polyester textiles, breaking them down into their fundamental molecular components. From these constituent monomer...
How the Company Makes Money
null...
Loop Industries Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call presented multiple concrete commercial milestones (India MOU, site selection in Europe), material CapEx improvement (~$20M-$25M reduction), progressing debt term sheets and near-term engineering revenue opportunities, reflecting clear commercial momentum and improved project economics. However, meaningful execution risks remain: debt close is contingent on 50% contracted offtakes, several customers are only offering LOIs, near-term liquidity covers only through year-end without additional secured revenues, and pricing/FX volatility could affect realized margins. On balance, the positive operational and commercial developments materially outweigh the conditional risks identified.Positive Updates
Government MOU and Site Alignment in India
Infinite Loop India signed a memorandum of understanding with the Government of Gujarat providing formal alignment to streamline permitting, infrastructure coordination and administrative processes; selected site can support multiple manufacturing facilities and the first Indian facility is expected to be operational in calendar year 2028.
Negative Updates
Financing Contingent on Offtake Commitments
Debt financing is contingent on having 50% of the India facility capacity contracted in minimum three-year agreements; securing those long-term offtakes is challenging because many brands are reluctant to commit to multi-year supply contracts that begin years before delivery.
Read all updates
Q4-2026 Updates
Positive
Negative
Government MOU and Site Alignment in India
Infinite Loop India signed a memorandum of understanding with the Government of Gujarat providing formal alignment to streamline permitting, infrastructure coordination and administrative processes; selected site can support multiple manufacturing facilities and the first Indian facility is expected to be operational in calendar year 2028.
Read all positive updates
Company Guidance
Loop guided that the Infinite Loop India greenfield facility now has an estimated total CapEx of approximately $165–$170 million (down from about $190M), including roughly $115M of construction costs, and is expected to be operational in calendar year 2028; financing is expected to be ~70% debt / 30% equity (Loop ~15% equity, partner Ester ~15%), with debt syndication moving into technical due diligence at Terrebonne (scope expected to be finalized by end‑June to mid‑July) and closing contingent on having at least 50% of plant volume signed in minimum three‑year offtake contracts; Loop would own 50% of the JV and earn a 5% royalty (Nike’s existing deal is a three‑year fixed‑price, fixed‑volume contract with 40% take‑or‑pay), engineering and feasibility work (European feasibility ~6 months) should drive meaningful engineering services revenue within weeks/months and help fund back‑office spend for years, the company has non‑dilutive NRC‑IRAP support of up to CAD 2.9M through October 2027, and management reiterated targets of roughly 45% EBITDA margin (previously cited ~$50–$60M EBITDA) with an estimated payback of ~1.5–2.5 years; additionally, PET prices are up ~30–50% year‑to‑date and the company expects material pricing bands (ICIS) around a ~€275/ton range.Loop Industries Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
14
Very Negative
| Breakdown | TTM | Feb 2026 | Feb 2024 | Feb 2023 | Feb 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 441.00K | 514.00K | 10.89M | 153.00K | 172.84K | 0.00 |
| Gross Profit | -968.00K | -251.00K | 10.37M | -382.00K | -377.28K | -548.23K |
| EBITDA | -10.58M | -9.74M | -13.91M | -20.36M | -20.56M | -44.22M |
| Net Income | -12.24M | -12.30M | -15.06M | -21.09M | -21.30M | -44.92M |
Balance Sheet | ||||||
| Total Assets | 6.70M | 8.56M | 18.58M | 20.55M | 40.56M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 2.36M | 12.97M | 6.96M | 29.59M | 44.06M |
| Total Debt | 3.01M | 3.04M | 3.08M | 3.32M | 3.30M | 3.38M |
| Total Liabilities | 18.72M | 18.14M | 18.21M | 6.41M | 6.82M | 13.23M |
| Stockholders Equity | -12.02M | -9.58M | 367.00K | 14.14M | 33.74M | 45.99M |
Cash Flow | ||||||
| Free Cash Flow | -8.26M | -10.32M | -2.57M | -23.68M | -35.93M | -48.10M |
| Operating Cash Flow | -8.26M | -10.11M | -2.12M | -18.03M | -34.89M | -42.98M |
| Investing Cash Flow | -1.09M | -1.17M | -2.04M | -5.64M | 21.28M | -5.11M |
| Financing Cash Flow | 733.00K | 678.00K | 10.32M | -75.00K | 1.01M | 56.99M |
Loop Industries Technical Analysis
Negative
0.80
Price Trends
0.78
Negative
1.07
Negative
1.13
Negative
Market Momentum
-0.05
Negative
35.02
Neutral
6.61
Positive
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 0.8 is above the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.78, and below the 200-day MA of 1.13, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 6.61 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.14B | 9.08 | 15.54% | ― | -21.51% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $76.83M | -62.91 | -1.60% | 0.50% | 7.70% | -139.19% | |
50 Neutral | $67.95M | -21.71 | -8.12% | ― | -4.66% | -201.32% | |
47 Neutral | $380.75M | -1.71 | -51.42% | ― | 121.37% | -264.53% | |
40 Underperform | $29.95M | -2.45 | 142.32% | ― | -96.04% | 9.12% |
* Basic Materials Sector Average
LOOP
Loop Industries
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NTIC
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Loop Industries Corporate Events
Business Operations and Strategy
Loop Industries inks strategic licensing and marketing deals
Positive
Aug 19, 2026
On August 13, 2026, Loop Industries entered into a License Agreement with ELITe, and, for certain provisions, Ester, granting ELITe a perpetual, exclusive, royalty-bearing license to use Loop’s depolymerization technology to build and operat...
Delistings and Listing ChangesRegulatory Filings and Compliance
Loop Industries Faces Nasdaq Listing Compliance Challenges
Negative
Jul 29, 2026
On July 24, 2026, Loop Industries received notice from Nasdaq that it had fallen below the $50 million minimum market value of listed securities requirement for 30 consecutive business days, giving the company until January 20, 2027 to regain comp...
Executive/Board Changes
Loop Industries Adds Independent Director to Board
Positive
Jun 23, 2026
On June 19, 2026, Loop Industries’ board of directors expanded its size by one seat and appointed veteran executive Jeffrey R. Geygan as an independent director, effective June 22, 2026, with his term running until the next annual shareholde...
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.