Legend Power Systems (LPS) AI Stock Analysis

• Market Cap: C$17.02M
• Dividend Yield: N/A
• Average Volume (3M): 109.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 27.76%
• EPS Growth: -0.37%
• Country: CA
• Employees: 25
• Sector: General
• Sector Strength: N/A
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 141,861,590
• 10 Day Avg. Volume: 95,047
• 30 Day Avg. Volume: 109,118
• PEG Ratio: 0.36
• Price to Book (P/B): 34.97
• Price to Sales (P/S): 17.93
• P/FCF Ratio: -16.01
• 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: 47 Neutral
• Price Target: ―

Legend Power Systems' overall stock score is constrained by ongoing financial challenges, including negative cash flows and a weak valuation. Despite positive corporate events indicating strategic growth initiatives and new partnerships, the financial and technical weaknesses overshadow these potential positives, resulting in a low overall score.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and service offerings, potentially leading to increased revenue opportunities and market expansion.

Product Demand

Repeat orders indicate strong product demand and customer satisfaction, reinforcing the company's market position and potential for revenue growth.

Revenue Growth

Significant revenue growth suggests successful market penetration and increasing adoption of the company's solutions, supporting long-term financial health.

Negative Factors

Cash Flow Issues

Negative cash flows indicate challenges in sustaining operations without external financing, which may impact long-term viability and growth.

Profitability Challenges

Ongoing losses and negative net income highlight operational inefficiencies, raising concerns about the company's ability to achieve profitability.

Declining Revenue Trend

A declining revenue trend suggests potential market challenges or competitive pressures, impacting long-term growth prospects and financial stability.

Legend Power Systems Business Overview & Revenue Model

Company Description

Legend Power Systems Inc., together with its subsidiaries, operates as an electrical energy conservation company in Canada and the United States. It assembles, markets, and sells SmartGATE, a patented device that enables dynamic power management of commercial or industrial Buildings. The company was founded in 1987 and is based in Vancouver, Canada.

How the Company Makes Money

Legend Power Systems generates revenue through the sale of its energy management products and services to commercial and industrial clients. The company's key revenue streams include direct sales of its proprietary technology solutions, installation services, and ongoing maintenance contracts. Additionally, LPS may enter into strategic partnerships with utility companies or other energy service providers to expand its market reach and enhance its service offerings. These partnerships can lead to additional revenue opportunities through joint projects or collaborative initiatives aimed at improving energy efficiency across different sectors.

Legend Power Systems Financial Statement Overview

Summary

Legend Power Systems is experiencing significant financial challenges characterized by declining revenues, consistent operational losses, and cash flow issues. While the company maintains a manageable debt level, the inability to generate positive cash flow and profitability raises concerns about its financial stability and growth prospects.

Income Statement

Legend Power Systems has shown a declining revenue trend over the years with the latest TTM revenue at $1.95M, which is lower compared to previous years. The company is facing negative EBIT and EBITDA, indicating operational inefficiencies. Net income has consistently been negative, reflecting ongoing challenges in achieving profitability. The gross profit margin is extremely low at 1.2%, and the net profit margin is negative, further highlighting financial stress.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.25, which indicates relatively low leverage. However, the equity ratio has been declining, currently standing at 37.6%, suggesting a decrease in asset financing by equity. The ROE is negative, aligning with the net losses, which raises concerns about the company's ability to generate returns for shareholders.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, indicating cash outflows in core operations. However, there was a significant improvement in net cash flow from financing activities. The free cash flow to net income ratio is negative, which is a concern as it implies cash generation issues. The operating cash flow to net income ratio is negative, further emphasizing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70M	1.87M	1.11M	2.12M	2.71M	2.03M
Gross Profit	366.41K	702.85K	194.18K	204.35K	571.25K	497.97K
EBITDA	-3.44M	-3.11M	-3.91M	-5.14M	-3.61M	-4.54M
Net Income	-3.64M	-3.30M	-4.18M	-5.35M	-3.84M	-4.78M
Balance Sheet
Total Assets	2.22M	2.80M	5.23M	6.30M	11.80M	4.82M
Cash, Cash Equivalents and Short-Term Investments	215.15K	236.72K	2.51M	3.09M	9.29M	2.29M
Total Debt	256.96K	324.83K	425.99K	189.16K	304.10K	241.82K
Total Liabilities	1.82M	1.84M	1.23M	953.16K	1.71M	1.41M
Stockholders Equity	400.50K	960.53K	3.99M	5.35M	10.09M	3.42M
Cash Flow
Free Cash Flow	-2.30M	-2.10M	-2.89M	-6.14M	-2.60M	-3.47M
Operating Cash Flow	-2.30M	-2.09M	-2.89M	-6.07M	-2.57M	-3.35M
Investing Cash Flow	-2.29K	-7.84K	0.00	-62.81K	-28.34K	-112.41K
Financing Cash Flow	1.72M	-170.81K	2.32M	-160.53K	9.56M	53.73K

Legend Power Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPS, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LPS.

Legend Power Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELVA	72 Outperform	$571.59M	108.28	16.94%	―	46.80%	―
GRID	57 Neutral	C$242.32M	-191.46	-13.77%	―	26.28%	27.86%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
BES	48 Neutral	C$5.46M	-2.41	―	―	-3.93%	-27.37%
LPS	47 Neutral	C$17.02M	-4.46	-341.84%	―	27.76%	-0.37%
EGT	40 Underperform	C$4.75M	-0.44	―	―	―	―

Legend Power Systems Corporate Events

Legend Power Systems Seeks Up to CAD$1.7 Million in New Private Placement

Legend Power Systems has launched a non-brokered private placement under the Listed Issuer Financing Exemption, offering between 11.1 million and 14.2 million units at CAD$0.12 per unit to raise gross proceeds of approximately CAD$1.33 million to CAD$1.70 million. Each unit comprises one common share and one warrant exercisable at CAD$0.12 for 36 months, with potential finder fees and warrants payable, and the proceeds earmarked primarily for operating expenses, material purchases and general working capital, underscoring the company’s need to bolster liquidity as it pursues growth in its building-focused energy management business; the financing may close in multiple tranches by January 31, 2026, subject to stock exchange and other regulatory approvals.

Legend Power Systems Announces Private Placement to Raise Up to CAD$1.7 Million

Legend Power Systems Inc. has announced a non-brokered private placement to raise between CAD$1,333,333 and CAD$1,702,320 through the issuance of up to 14,186,000 units, each comprising one common share and one purchase warrant. The proceeds will primarily be used for operating expenses, material purchases, and general working capital, with the offering expected to close in multiple tranches by January 8, 2026, subject to necessary approvals.

Legend Power Systems Partners with Leading Franchise Network to Expand SmartGATE Reach

Legend Power Systems has entered into a partnership with a major North American franchise network operated by a Fortune 500 facility management company. This collaboration will allow Legend Power to expand the reach of its SmartGATE platform and SmartGATE Insights Power Impact Assessment, providing access to over 150 partner organizations, including electrical and HVAC contractors. The partnership aims to enhance the understanding of electrical supply impacts on building systems and offers installation services through the network’s contractors, aligning with Legend Power’s equipment-only sales strategy. This move is expected to address significant power quality challenges across more than 10,000 buildings, benefiting building owners, tenants, franchise partners, and grid operators.