Tantalus Systems Holding (GRID) AI Stock Analysis

• Market Cap: C$171.30M
• Dividend Yield: N/A
• Average Volume (3M): 83.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 17.51%
• EPS Growth: -2.94%
• Country: CA
• Employees: 134
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 51,134,254
• 10 Day Avg. Volume: 132,724
• 30 Day Avg. Volume: 83,426
• PEG Ratio: 0.32
• Price to Book (P/B): 14.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.14
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 4.63
• Enterprise Value/Ebitda: -68.88
• 1Y Price Target: C$3.73
• Price Target Upside: 24.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: C$3.50 ▲(16.67%Upside)

Tantalus Systems Holding's overall stock score is moderate, driven by strong technical indicators and positive corporate events that enhance growth prospects. However, the score is tempered by financial challenges, particularly in profitability and valuation concerns, which suggest caution.

Positive Factors

Customer Expansion

Tantalus announced a large customer grid modernization expansion project, which reflects the largest encoder receiver transmitter (ERT) overlay to grid modernization migration in company history.

Market Opportunity

The global grid modernization market is projected to surge significantly, indicating a substantial growth opportunity for companies involved in this sector.

Product Adoption

The commercial adoption of the Company’s next-gen TRUSense Gateway is now underway, which is core to the thesis of future growth.

Negative Factors

Infrastructure Vulnerability

The global power grid is showing signs of critical vulnerability, with infrastructure struggling under climate change and increasing demand.

Outdated Infrastructure

The insidious threat of an outdated grid often goes unnoticed until disaster strikes, pointing to the urgent need for infrastructure investment.

Tantalus Systems Holding Business Overview & Revenue Model

Company Description

Tantalus Systems Holding Inc. (GRID) is a technology company that specializes in developing smart grid solutions for electric, water, and gas utilities. The company's core products and services include advanced metering infrastructure (AMI), demand management solutions, and data analytics tools that help utility companies optimize their operations, improve resource efficiency, and enhance customer engagement. Tantalus Systems focuses on providing utilities with actionable insights and reliable communication networks to build sustainable and resilient smart grids.

How the Company Makes Money

Tantalus Systems generates revenue primarily through the sale of its smart grid solutions to utility companies. The company's key revenue streams include the sales of hardware components such as smart meters and communication devices, software licenses for its data analytics and management platforms, and recurring revenue from maintenance, support, and professional services. Tantalus Systems also engages in strategic partnerships with technology providers and utility companies to enhance its product offerings and expand its market reach. These collaborations contribute to its earnings by broadening its customer base and increasing the adoption of its solutions.

Tantalus Systems Holding Financial Statement Overview

Summary

Tantalus Systems Holding demonstrates moderate financial performance with strengths in revenue growth and cash flow generation. However, the company faces challenges related to profitability and high leverage on its balance sheet, which could pose risks if not managed effectively.

Income Statement

Tantalus Systems Holding shows a consistent revenue growth with a growth rate of 5.15% from 2023 to 2024. However, the company has struggled to maintain profitability, with a negative net profit margin of -5.93% for 2024. The gross profit margin is relatively strong at 54.22% for 2024, but persistent negative EBIT and EBITDA margins indicate challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio due to low equity levels, with a debt-to-equity ratio of 1.85 in 2024. The equity ratio is only 16.71%, indicating a reliance on debt financing. Despite this, the company has a positive cash position, as evidenced by a net debt of -398,588, indicating more cash than debt.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a positive turnaround from -1.1 million in 2023 to 2.2 million in 2024, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is high at -1.00, suggesting strong cash flow relative to net income despite profitability issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.31M	42.15M	39.60M	32.17M	33.05M
Gross Profit	24.02M	21.86M	18.90M	14.35M	16.12M
EBITDA	722.72K	1.52M	-3.91M	-4.90M	1.26M
Net Income	-2.63M	-1.69M	-5.20M	-7.02M	1.48M
Balance Sheet
Total Assets	41.55M	34.80M	37.36M	31.03M	23.53M
Cash, Cash Equivalents and Short-Term Investments	13.22M	5.15M	5.85M	14.20M	4.65M
Total Debt	12.82M	14.37M	13.84M	12.11M	8.66M
Total Liabilities	34.61M	32.48M	33.78M	24.24M	25.84M
Stockholders Equity	6.94M	2.32M	3.58M	6.79M	-2.31M
Cash Flow
Free Cash Flow	2.23M	-1.11M	-3.58M	-4.54M	410.12K
Operating Cash Flow	2.64M	-839.72K	-3.40M	-4.01M	910.72K
Investing Cash Flow	-409.30K	-269.36K	-5.86M	-188.14K	-854.01K
Financing Cash Flow	5.86M	403.69K	1.07M	13.75M	-773.59K

Tantalus Systems Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRID, the sentiment is Positive. The current price of 3 is above the 20-day moving average (MA) of 2.77, above the 50-day MA of 2.50, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 75.90 is Negative, neither overbought nor oversold. The STOCH value of 74.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRID.

Tantalus Systems Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPS.A	75 Outperform	$1.52B	16.90	31.84%	0.86%	9.52%	61.44%
HPS.A	75 Outperform	$1.52B	16.90	31.84%	0.86%	9.52%	61.44%
ELVA	61 Neutral	$171.26M	―	-0.21%	―	2.20%	89.34%
ELVA	61 Neutral	$171.26M	―	-0.21%	―	2.20%	89.34%
GRID	58 Neutral	C$171.30M	―	-45.20%	―	17.51%	-2.94%
Sector *	58 Neutral	HK$10.50B	4.22	-2.96%	7.40%	3.76%	-51.26%
LPS	47 Neutral	C$15.60M	―	-200.00%	―	177.07%	29.71%
EXRO	43 Neutral	$36.37M	―	-3009.52%	―	310.92%	-69.91%
EXRO	43 Neutral	$36.37M	―	-3009.52%	―	310.92%	-69.91%
NHHH	35 Underperform	C$35.79M	―	-70.10%	―	―	-0.95%

Tantalus Systems Holding Corporate Events

Tantalus Expands Partnership with EPB for Grid Modernization

Tantalus Systems has announced an expansion of its partnership with EPB in Chattanooga, Tennessee, to deploy 20,000 TRUSense Ethernet Gateways over the next five years. This deployment will enhance EPB’s automated distribution grid and broadband services, integrating with their existing fiber-to-the-home network to provide advanced power quality insights and support for broadband services. The project highlights the scalability and effectiveness of Tantalus’ TRUSense Gateway in addressing the evolving needs of utilities, demonstrating Tantalus’ commitment to customer-driven product development and grid modernization.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Systems’ AI-Powered Analytics to Modernize Indiana’s Utility Grids

Tantalus Systems announced that the Indiana Municipal Power Agency (IMPA) will deploy its AI-powered TRUGrid analytics across 19 member utilities. This initiative, funded by the Grid Resilience Grant Program, marks Tantalus’ first large-scale AI analytics rollout across multiple utilities, enhancing grid reliability and operational efficiency. The deployment underscores the industry’s shift towards data-driven grid modernization, allowing utilities to make informed decisions and improve infrastructure management.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Riverside Public Utilities Partners with Tantalus for Major Grid Modernization

Riverside Public Utilities (RPU) has partnered with Tantalus Systems to advance its grid modernization efforts, marking the largest migration in Tantalus’ history from an ERT overlay to an advanced metering infrastructure (AMI). This strategic move allows RPU to enhance the reliability and resiliency of its distribution grid while extending the life of its existing infrastructure. The collaboration exemplifies how utilities can transition from legacy systems to advanced solutions at their own pace, aligning upgrades with their priorities and timelines, and serves as a model for other utilities planning grid modernization initiatives.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Systems Reports Strong Shareholder Support at Annual Meeting

Tantalus Systems announced the results of its annual general and special meeting, where eight directors were elected with overwhelming support. Additionally, Ernst & Young LLP was appointed as the company’s auditors for the upcoming year, and the amended omnibus long-term incentive plan was approved by shareholders. These decisions reflect strong shareholder confidence and strategic alignment in the company’s ongoing efforts to enhance its operational and financial frameworks.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Systems Sees Revenue Growth and Expands Market Presence in Q1 2025

Tantalus Systems reported a 27% increase in revenue for Q1 2025, reaching $11.9 million, driven by growth in connected devices and utility software applications. The company improved its gross profit margin to 55% and reduced its net loss to $651,000. Positive cash flow from operations and increased liquidity were also noted. Key developments included significant sales order conversions, expansion of the user community, and leadership team appointments. The company also qualified for the OTCQX Best Market. However, potential challenges include new U.S. tariffs on imports from the Philippines, which could impact the company’s financial condition.

Tantalus Systems Highlights Urgent Need for Grid Modernization in Latest Survey

Tantalus Systems has released its third annual Utility of the Future Survey, highlighting that grid modernization remains a priority for 74% of utilities surveyed, yet only a small fraction feel prepared to tackle associated challenges such as grid data management and cybersecurity. The survey underscores the increasing demand for support from trusted vendors like Tantalus, as utilities face rising concerns about extreme weather, economic volatility, and meeting customer expectations for grid reliability and resilience.

Tantalus Systems to Announce Q1 2025 Financial Results

Tantalus Systems announced it will release its first-quarter 2025 financial results on May 7, 2025, and will host a conference call and webcast on May 8, 2025, to discuss the results. This announcement is part of Tantalus’s ongoing efforts to keep stakeholders informed about its financial performance and strategic direction, potentially impacting its market positioning and investor relations.