Legend Power Systems Inc (TSE:LPS)
:LPS
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Legend Power Systems
(LPS)
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Rating:44Neutral
Price Target:
C$0.09
▼(-27.50% Downside)
Action:ReiteratedDate:04/14/26
The score is primarily weighed down by weak financial performance: persistent large losses, continued cash burn, and negative equity increase funding and balance-sheet risk. Technicals are mixed (short-term improvement but weaker longer-term trend), while valuation is constrained by negative earnings and no dividend yield data.
Positive Factors
Recurring revenue mix
The business model includes recurring software, monitoring and maintenance services tied to installed SmartGATE systems. Durable service revenue can stabilize cash inflows, enable higher lifetime customer value, and create lock-in that supports long-term gross revenue predictability as deployments scale.
Negative Factors
Very weak profitability
Extremely low gross margins and very large operating losses indicate the current unit economics are not sustainable. Persistent unprofitability erodes retained capital, limits reinvestment in product development or sales capacity, and makes long-term viability contingent on meaningful margin improvement or structural cost reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue mix
The business model includes recurring software, monitoring and maintenance services tied to installed SmartGATE systems. Durable service revenue can stabilize cash inflows, enable higher lifetime customer value, and create lock-in that supports long-term gross revenue predictability as deployments scale.
Read all positive factors
Legend Power Systems (LPS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$15.52M
Dividend YieldN/A
Average Volume (3M)109.12K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth27.76%
EPS Growth-0.37%
CountryCA
Employees25
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)N/A
Shares Outstanding155,239,760
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., 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 o...
How the Company Makes Money
Legend Power Systems primarily makes money by selling and deploying its SmartGATE voltage optimization systems and related services to building owners and operators. Revenue is typically generated from (1) equipment/system sales (the SmartGATE har...
Legend Power Systems Earnings Call Summary
Earnings Call Date:Aug 22, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 21, 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
22
Negative
Cash Flow
15
Very Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.85M | 1.68M | 1.87M | 1.11M | 2.12M | 2.71M |
| Gross Profit | 47.17K | -2.40M | 702.85K | 194.18K | 204.35K | 571.25K |
| EBITDA | -2.57M | -3.09M | -3.11M | -3.91M | -5.14M | -3.61M |
| Net Income | -2.78M | -3.29M | -3.30M | -4.18M | -5.35M | -3.84M |
Balance Sheet | ||||||
| Total Assets | 1.76M | 2.01M | 2.80M | 5.23M | 6.30M | 11.80M |
| Cash, Cash Equivalents and Short-Term Investments | 46.63K | 52.75K | 236.72K | 2.51M | 3.09M | 9.29M |
| Total Debt | 166.34K | 212.12K | 324.83K | 425.99K | 189.16K | 304.10K |
| Total Liabilities | 2.41M | 2.17M | 1.84M | 1.23M | 953.16K | 1.71M |
| Stockholders Equity | -652.51K | -163.04K | 960.53K | 3.99M | 5.35M | 10.09M |
Cash Flow | ||||||
| Free Cash Flow | -1.24M | -1.87M | -2.10M | -2.89M | -6.14M | -2.60M |
| Operating Cash Flow | -1.24M | -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 | 642.42K | 1.70M | -170.81K | 2.32M | -160.53K | 9.56M |
Legend Power Systems Technical Analysis
Positive
0.12
Price Trends
0.09
Positive
0.10
Negative
0.12
Negative
Market Momentum
<0.01
Negative
61.54
Neutral
100.00
Negative
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 above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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% | |
58 Neutral | C$618.16M | 79.82 | 14.29% | ― | 46.80% | ― | |
58 Neutral | C$342.77M | -172.86 | -13.77% | ― | 26.28% | 27.86% | |
44 Neutral | C$15.52M | -7.82 | -1552.79% | ― | 27.76% | -0.37% | |
40 Underperform | C$5.65M | -0.93 | 26.22% | ― | ― | ― | |
40 Underperform | C$4.39M | -1.85 | ― | ― | -3.93% | -27.37% |
* Industrials Sector Average
TSE:LPS
Legend Power Systems
0.09
-0.02
-18.18%
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Legend Power Systems Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Legend Power Narrows Loss as SmartGATE Demand Lifts Revenue and Margins
Positive
Mar 2, 2026
Legend Power Systems reported a sharp year-over-year improvement in its fiscal Q1 2026 results, with revenue climbing to $253,000 from $82,000 and gross margin rising to 44% on better pricing and factory utilization. Operating expenses fell 39% du...
Business Operations and StrategyFinancial Disclosures
Legend Power Narrows Losses as Pipeline Grows Despite Lower Annual Revenue
Neutral
Jan 29, 2026
Legend Power Systems reported fourth-quarter fiscal 2025 revenue of C$690,284, essentially flat year over year, while its net loss narrowed to C$481,441 from C$832,475 on the back of lower operating expenses and improved gross margin of 25% versus...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Legend Power Systems Raises $1.65 Million in Private Placement, Sets Date for Fiscal 2025 Results
Positive
Jan 27, 2026
Legend Power Systems has closed a non-brokered private placement, raising approximately $1.65 million through the issuance of 13.75 million units at $0.12 per unit, each comprising one common share and one warrant exercisable at the same price unt...
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.