Legend Power Systems (LPS) AI Stock Analysis

• Market Cap: C$17.73M
• Dividend Yield: N/A
• Average Volume (3M): 58.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 177.07%
• EPS Growth: 29.71%
• Country: CA
• Employees: 25
• Sector: Utilities
• Sector Strength: 82
• Industry: Electrical Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 141,851,600
• 10 Day Avg. Volume: 55,712
• 30 Day Avg. Volume: 58,929
• PEG Ratio: -4.35
• Price to Book (P/B): 19.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.71
• 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

• 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.

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 faces 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. Strategic changes may be necessary to improve operational efficiency and financial health.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.95M	1.87M	1.11M	2.12M	2.71M	2.03M
	Gross Profit
23.37K	702.85K	194.18K	204.35K	571.25K	497.97K
	EBIT
-3.25M	-3.31M	-4.24M	-5.37M	-4.04M	-4.79M
	EBITDA
-3.07M	-3.11M	-3.91M	-5.14M	-3.61M	-4.54M
	Net Income Common Stockholders
-3.25M	-3.30M	-4.18M	-5.35M	-3.84M	-4.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
660.73K	236.72K	2.51M	3.09M	9.29M	2.29M
	Total Assets
3.06M	2.80M	5.23M	6.30M	11.80M	4.82M
	Total Debt
284.21K	324.83K	425.99K	189.16K	304.10K	241.82K
	Net Debt
-376.51K	88.11K	-2.08M	-2.90M	-8.98M	-2.04M
	Total Liabilities
1.91M	1.84M	1.23M	953.16K	1.71M	1.41M
	Stockholders Equity
1.15M	960.53K	3.99M	5.35M	10.09M	3.42M
Cash Flow		Free Cash Flow
-1.64M	-2.10M	-2.89M	-6.14M	-2.60M	-3.47M
	Operating Cash Flow
-1.63M	-2.09M	-2.89M	-6.07M	-2.57M	-3.35M
	Investing Cash Flow
-10.13K	-7.84K	0.00	-62.81K	-28.34K	-112.41K
	Financing Cash Flow
885.90K	-170.81K	2.32M	-160.53K	9.56M	53.73K

Legend Power Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.13
• 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 0.13 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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
Sector *	63 Neutral	$8.47B	10.31	4.67%	4.37%	4.05%	-12.96%
LPS	47 Neutral	C$17.73M	―	-157.10%	―	177.07%	29.71%
EGT		C$4.97M	―		―	―	―
BES	45 Neutral	C$4.96M	―	-1239.25%	―	-10.98%	9.25%
NHHH	35 Underperform	C$15.42M	―	-73.79%	―	―	-0.95%
EXROF		$51.57M	―	-3009.52%	―	―	―
ZAIRF		$1.31M	―		―	―	―

Legend Power Systems Corporate Events

Legend Power Systems Secures Major Repeat Order for SmartGATE Systems

Legend Power Systems has secured a repeat purchase order for eight additional SmartGATE systems from a major commercial real estate organization, marking the fourth large-scale purchase by this customer in four years. This order increases the total number of SmartGATE systems purchased by the customer to over 50, demonstrating the scalability and long-term impact of the technology. The order not only increases the number of systems but also shifts installation responsibilities to the customer’s preferred contractor, enhancing overall margins and improving payment terms. This commitment highlights SmartGATE’s ability to optimize power conditions, reduce operating costs, and improve building performance, reinforcing Legend Power’s position in supporting large-scale commercial property owners with energy improvement plans.

Spark’s Take on TSE:LPS Stock

According to Spark, TipRanks’ AI Analyst, TSE:LPS is a Neutral.

Legend Power Systems’ overall stock score is constrained by financial challenges, including declining revenues and negative cash flows, despite a series of positive corporate events indicating strategic growth initiatives. Technical indicators suggest bearish momentum, and the negative P/E ratio further dampens valuation appeal. While new partnerships and product offerings are promising, they are not yet sufficient to offset financial and operational concerns.

To see Spark’s full report on TSE:LPS stock, click here.

Legend Power Systems Secures Rapid Order with New Voltage Risk Service

Legend Power Systems has announced that its new Voltage Adherence Risk measurement service has led to a rapid purchase order from a North American school district. The school district, facing equipment failures due to power quality issues, used Legend’s SmartGATE Insights Power Impact Report to identify significant risks, leading to a quick contract to address these issues. This development highlights the importance of visibility into power quality for proactive building management and underscores the impact of Legend’s new metric in accelerating decision-making for organizations.

Legend Power Systems Reports Strong Q1 F2025 Revenue Growth and Strategic Expansion

Legend Power Systems reported significant revenue growth in Q1 F2025, with a jump to $82,000 from $2,000 in Q1 F2024, alongside a marginal reduction in net loss. The company is scaling its SmartGATE™ deployments to meet growing demand, supported by successful financing and partnerships with utilities and Energy Service Companies. Their involvement in the Green Proving Ground program with the U.S. General Services Administration highlights the company’s expanding role in large-scale energy efficiency projects.

Legend Power Systems to Release Q1 2025 Financial Results and Host Webinar

Legend Power Systems Inc. has announced it will release its financial results for Q1 2025 on February 21, 2025, prior to market opening, accompanied by a business update webinar hosted by the CEO. This announcement is part of their ongoing efforts to engage stakeholders and demonstrate the impact of their energy management solutions on corporate performance and sustainability objectives.