Eddy Smart Home Solutions Ltd. (EDY) AI Stock Analysis

• Market Cap: C$11.55M
• Dividend Yield: N/A
• Average Volume (3M): 645.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.04
• Revenue Growth: 26.56%
• EPS Growth: 94.17%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 6,128,623
• 10 Day Avg. Volume: 300
• 30 Day Avg. Volume: 645
• PEG Ratio: 0.02
• Price to Book (P/B): -3.52
• Price to Sales (P/S): 2.13
• P/FCF Ratio: -4.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$2.00 ▲(21.21% Upside)

The score is primarily weighed down by weak financial fundamentals—persistent losses, negative free cash flow, and negative equity that elevates funding/dilution risk. Technicals are neutral-to-weak with price below key longer-term averages and slightly negative MACD. Valuation signals are limited because the company is unprofitable (negative P/E) and no dividend yield is provided.

Positive Factors

Improving gross margin

A sustained gross margin near 61% indicates stronger product economics and unit profitability, which improves the company's ability to cover fixed costs and supports scalable growth. If maintained, higher gross margins materially shorten the path to operating breakeven.

Consistent revenue growth

Mid‑20% top‑line growth and TTM revenue expansion demonstrate demand traction for products and market adoption. Durable revenue growth provides a foundation for margin leverage and investment in distribution, making future profitability more achievable if cost control continues.

Modest absolute debt load

Low absolute debt reduces near‑term interest obligations and preserves financial flexibility relative to firms with heavy leverage. This modest nominal debt load eases restructuring of capital if needed and reduces immediate balance‑sheet strain during scaling or refinancing.

Negative Factors

Deep unprofitability

A roughly -60% net margin signals sizable structural losses that erode retained capital and limit reinvestment. Persistent operating deficits necessitate either rapid margin improvement or ongoing external funding, raising long‑term sustainability and execution risk.

Negative operating and free cash flow

Negative operating and free cash flow indicate the business is not yet self‑funding and continues to burn cash. Over time this requires additional capital or meaningful cost reduction; otherwise cash depletion and dilution risk will constrain growth investments and strategic flexibility.

Negative shareholder equity

Negative equity reduces financial flexibility and impairs borrowing capacity, increasing refinancing and dilution risk. It reflects accumulated losses that can limit strategic options, hamper creditor confidence, and force dilutive capital raises until equity is rebuilt.

Eddy Smart Home Solutions Ltd. Business Overview & Revenue Model

Company Description

Eddy Smart Home Solutions Ltd. provides residential and commercial smart water metering products and related technologies. It helps property owners to protect, control, and conserve water usage by combining water sensing devices with behavioral learning software. The company is headquartered in Toronto, Canada.

How the Company Makes Money

Eddy Smart Home Solutions Ltd. generates revenue primarily through the sale of its smart home products and services. The company offers a suite of devices including smart thermostats, security cameras, and automated lighting systems, which customers purchase directly through their website or authorized retail partners. Additionally, Eddy Smart Home Solutions offers subscription-based services for enhanced features such as cloud storage for security footage and premium customer support. The company also collaborates with real estate developers and property management firms to integrate its smart home technology into new and existing residential projects, creating additional revenue streams through partnerships and bulk sales agreements.

Eddy Smart Home Solutions Ltd. Financial Statement Overview

Summary

Revenue and gross margin improved (TTM gross margin ~61%), but the company remains deeply unprofitable (TTM net margin roughly -60%), with negative operating cash flow/free cash flow (~-1.27M). The balance sheet is a major risk with negative equity in the last two periods, raising financing/dilution concerns despite modest absolute debt.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose to ~4.6M with strong growth versus the prior year, and gross margin improved to ~61% (vs ~53% in 2024), signaling better product economics. However, the company remains deeply unprofitable: TTM net margin is roughly -60% and operating losses are still sizable, indicating the cost base has not scaled with revenue. Losses are improving versus 2024 and especially 2022–2023, but profitability remains a clear weak point.

Balance Sheet

The balance sheet is pressured by negative equity in the last two periods (TTM and 2024), which materially reduces financial flexibility and raises refinancing/dilution risk. Debt is currently modest on an absolute basis in TTM (~0.8M) and was zero in 2024, but the negative equity makes leverage indicators less meaningful and highlights accumulated losses. Total assets are stable-to-up over time, but the capital structure remains a major concern until equity is rebuilt.

Cash Flow

Cash generation remains negative: TTM operating cash flow and free cash flow are both about -1.27M, and free cash flow declined versus the prior year. The cash burn has improved substantially from 2022’s very large outflow, but the business is still not self-funding and will likely require additional capital or continued cost reductions to reach breakeven. The trend is moving in the right direction, but consistency is not yet established.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65M	3.78M	3.41M	2.56M	1.22M	0.00
Gross Profit	2.85M	1.99M	966.46K	1.44M	343.89K	0.00
EBITDA	-2.46M	-2.87M	-8.98M	-11.15M	-7.51M	-1.76K
Net Income	-2.77M	-3.65M	-10.57M	-11.80M	-8.01M	-1.76K
Balance Sheet
Total Assets	13.23M	11.69M	11.34M	15.19M	462.57K	250.00K
Cash, Cash Equivalents and Short-Term Investments	228.64K	407.14K	1.14M	450.31K	462.57K	250.00K
Total Debt	790.98K	0.00	6.40M	3.00M	7.16M	0.00
Total Liabilities	17.07M	13.98M	17.89M	11.25M	20.22K	4.26K
Stockholders Equity	-3.84M	-2.29M	-6.56M	3.94M	442.35K	245.74K
Cash Flow
Free Cash Flow	-1.27M	-1.89M	-2.44M	-10.48M	-241.09K	2.50K
Operating Cash Flow	-1.27M	-1.89M	-2.43M	-10.34M	-207.93K	2.50K
Investing Cash Flow	18.78K	-7.20K	-13.20K	384.19K	-33.16K	0.00
Financing Cash Flow	750.00K	1.06M	3.13M	10.26M	420.50K	247.50K

Eddy Smart Home Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDY, the sentiment is Positive. The current price of 1.65 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.74, and below the 200-day MA of 1.82, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 53.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EDY.

Eddy Smart Home Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTE	76 Outperform	C$11.08M	11.03	18.01%	―	-17.91%	-54.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HEAT	48 Neutral	C$16.55M	-2.11	―	―	―	40.24%
WIFI	45 Neutral	C$4.18M	-0.44	―	―	190.53%	-9.41%
EDY	43 Neutral	C$11.55M	-4.17	―	―	26.56%	94.17%
YNV	37 Underperform	C$19.67M	-2.78	-155.37%	―	-21.98%	-32.07%
NXO	22 Underperform	C$1.95M	-5.00	―	―	―	―