Legend Power Systems Inc (TSE:LPS)
:LPS
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Legend Power Systems
(LPS)
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Rating:46Neutral
Price Target:
C$0.12
▲(2.50% Upside)
Action:Reiterated
Date:05/23/26
The score is held down primarily by weak financial performance driven by persistent losses and sustained negative operating/free cash flow. Technicals are supportive with strong recent momentum, but an overbought RSI tempers the benefit. Valuation is constrained by loss-making earnings (negative P/E) and no indicated dividend support.
Positive Factors
Product-market fit / Business Model
Legend's SmartGATE targets commercial and industrial customers seeking energy efficiency and power-quality improvements. That product-market alignment benefits from durable structural demand for lower energy costs and equipment protection, supporting recurring service opportunities and multi-site scaling.
Negative Factors
Negative Cash Generation
Persistent negative operating and free cash flow indicates the business consumes cash to run and grow. This raises reliance on external financing, increases dilution or credit risk, and constrains the firm's ability to self-fund installations, service offerings, or expansion over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Product-market fit / Business Model
Legend's SmartGATE targets commercial and industrial customers seeking energy efficiency and power-quality improvements. That product-market alignment benefits from durable structural demand for lower energy costs and equipment protection, supporting recurring service opportunities and multi-site scaling.
Read all positive factors
Legend Power Systems (LPS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$23.34M
Dividend YieldN/A
Average Volume (3M)109.12K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-20.31%
EPS Growth34.02%
CountryCA
Employees25
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding155,609,760
10 Day Avg. Volume95,047
30 Day Avg. Volume109,118
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)-162.31
Price to Sales (P/S)15.75
P/FCF Ratio-14.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Legend Power Systems Business Overview & Revenue Model
Company Description
Legend Power Systems Inc., along with its affiliates, operates as an energy efficiency provider in Canada and the United States, specializing in electrical conservation. The company's flagship offering is SmartGATE, a patented technology it manufa...
How the Company Makes Money
LPS makes money primarily by selling and deploying its SmartGATE power management systems and related services. Key revenue streams include: (1) Product/system revenue from the sale of SmartGATE units and associated hardware required for installat...
Legend Power Systems Earnings Call Summary
Earnings Call Date:Aug 22, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with record-breaking sales bookings, improved margins, and significant government contracts. However, challenges remain in the timely closure of deals and managing the complexity of the sales process. The company is on a positive trajectory with a substantial sales pipeline and increased production capacity.Positive Updates
Record Sales Bookings
Legend Power Systems achieved back-to-back record sales bookings in Q2 and Q3, with Q3 reaching about $3 million, surpassing previous records. Year-to-date bookings are the highest in Legend's history.
Negative Updates
Delayed Deal Closures
Some deals are taking longer than expected to close, affecting the timing of revenue recognition and cash flow.
Read all updates
Q3-2024 Updates
Positive
Negative
Record Sales Bookings
Legend Power Systems achieved back-to-back record sales bookings in Q2 and Q3, with Q3 reaching about $3 million, surpassing previous records. Year-to-date bookings are the highest in Legend's history.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call, Legend Power Systems provided insightful guidance, highlighting several key metrics and achievements. Notably, the company achieved a revenue of $1.04 million for the quarter, a significant increase from $470,000 in the same period last year. The gross margin improved to 50% from 22% in Q3 of fiscal 2023, showcasing effective cost management and factory utilization. Additionally, the company's backlog grew, with deferred revenue reaching $524,000 compared to $210,000 at the end of the previous fiscal year. Legend Power Systems reported a cash reserve of $806,000, no debt, and $1.5 million in working capital. The sales team secured major deals, including record-breaking bookings of approximately $3 million, surpassing prior records set in Q2. The company is optimistic about its future, with a robust pipeline of 17 deals worth over $7 million and significant growth potential, including projects with the City of New York and the U.S. Department of Defense. The management expressed confidence in maintaining strong margins and cash flow, driven by strategic initiatives and successful customer engagements.Legend Power Systems Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.87M | 1.68M | 1.87M | 1.11M | 2.12M | 2.71M |
| Gross Profit | -325.52K | -2.40M | 702.85K | 194.18K | 204.35K | 571.25K |
| EBITDA | -2.07M | -3.09M | -3.11M | -3.91M | -5.14M | -3.61M |
| Net Income | -2.28M | -3.29M | -3.30M | -4.18M | -5.35M | -3.84M |
Balance Sheet | ||||||
| Total Assets | 2.11M | 2.01M | 2.80M | 5.23M | 6.30M | 11.80M |
| Cash, Cash Equivalents and Short-Term Investments | 532.84K | 52.75K | 236.72K | 2.51M | 3.09M | 9.29M |
| Total Debt | 182.39K | 212.12K | 324.83K | 425.99K | 189.16K | 304.10K |
| Total Liabilities | 1.53M | 2.17M | 1.84M | 1.23M | 953.16K | 1.71M |
| Stockholders Equity | 581.98K | -163.04K | 960.53K | 3.99M | 5.35M | 10.09M |
Cash Flow | ||||||
| Free Cash Flow | -1.06M | -1.87M | -2.10M | -2.89M | -6.14M | -2.60M |
| Operating Cash Flow | -1.06M | -1.87M | -2.09M | -2.89M | -6.07M | -2.57M |
| Investing Cash Flow | 0.00 | -2.29K | -7.84K | 0.00 | -62.81K | -28.34K |
| Financing Cash Flow | 1.38M | 1.70M | -170.81K | 2.32M | -160.53K | 9.56M |
Legend Power Systems Technical Analysis
Positive
0.12
Price Trends
0.11
Positive
0.10
Positive
0.12
Positive
Market Momentum
<0.01
Negative
65.88
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPS, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.11, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LPS.
Legend Power Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$288.73M | -272.27 | -6.81% | ― | 21.49% | 60.08% | |
57 Neutral | C$717.36M | 102.66 | 11.31% | ― | 46.91% | ― | |
46 Neutral | C$23.34M | -9.32 | -1552.79% | ― | -20.31% | 34.02% | |
42 Neutral | C$3.98M | -0.40 | 26.22% | ― | -20.21% | 57.49% | |
40 Underperform | C$4.69M | -2.06 | ― | ― | -17.15% | 11.76% |
* Industrials Sector Average
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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.