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

• Market Cap: C$10.11M
• Dividend Yield: N/A
• Average Volume (3M): 645.00
• Price to Earnings (P/E): ―
• Beta (1Y): -1.05
• 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$1.50 ▼(-9.09% Downside)

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

Revenue Growth

The company's revenue growth indicates increasing market demand and potential for future profitability as the business scales.

Gross Margin Improvement

Improved gross margins suggest better product economics and operational efficiency, supporting long-term profitability potential.

Cash Flow Improvement

Reduced cash burn indicates progress towards financial sustainability, though further improvements are needed to achieve self-funding.

Negative Factors

Negative Equity

Negative equity limits financial flexibility and increases the risk of dilution, challenging the company's ability to fund growth.

Unprofitability

Sustained unprofitability highlights challenges in scaling operations efficiently, impacting long-term viability without strategic changes.

Negative Cash Flow

Persistent negative cash flow necessitates external funding, posing risks to operational continuity and strategic initiatives.

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

Eddy Smart Home Solutions Ltd. faces significant financial challenges with persistent losses, negative equity, and cash flow issues. However, there is modest revenue growth and slight improvements in free cash flow, though overall financial health remains precarious.

Income Statement

Eddy Smart Home Solutions Ltd. shows a challenging financial picture with negative net income and EBIT margins, which indicate profitability issues. The gross profit margin is moderate at approximately 47% TTM, but net profit margin remains negative. Revenue growth is present, with a 7.7% increase from 2023 to 2024 TTM, highlighting some potential for revenue expansion.

Balance Sheet

The balance sheet is weak, with negative stockholders' equity indicating financial distress. The equity ratio is negative, and the company has no debt, which eliminates leverage risk but also reflects a lack of financial flexibility. Return on Equity is negative due to consistent losses.

Cash Flow

Cash flows are concerning, with negative operating and free cash flows suggesting liquidity issues. The operating cash flow to net income ratio is negative, indicating cash outflows exceed earnings. Despite this, there is a slight improvement in free cash flow growth from 2023 to 2024 TTM, indicating some operational improvement.

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 above the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.67, and below the 200-day MA of 1.84, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.56 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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$11.45M	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$20.56M	-2.88	―	―	―	40.24%
EDY	43 Neutral	C$10.11M	-4.16	―	―	26.56%	94.17%
WIFI	41 Neutral	C$3.66M	-0.72	―	―	190.53%	-9.41%
NXO	22 Underperform	C$1.95M	-5.00	―	―	―	―