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Northstar Clean Technologies, Inc. (TSE:ROOF)
:ROOF
Canadian Market

Northstar Clean Technologies (ROOF) AI Stock Analysis

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Northstar Clean Technologies

(ROOF)

Rating:56Neutral
Price Target:
C$0.50
▲(38.89%Upside)
Northstar's overall score is driven by significant corporate achievements and a mixed technical outlook, despite its challenging financial performance. The company's strategic initiatives and expansion efforts have bolstered its potential, yet financial instability remains a critical concern that could impact future performance.

Northstar Clean Technologies (ROOF) vs. iShares MSCI Canada ETF (EWC)

Northstar Clean Technologies Business Overview & Revenue Model

Company DescriptionNorthstar Clean Technologies Inc., a clean technology company, focuses on the recovery and repurposing of single-use asphalt shingles in North America. The company has developed a proprietary design process for taking discarded asphalt shingles or destined for already over-crowded landfills, and extracting the liquid asphalt, aggregate sands, and fiber for usage in new hot mix asphalt, construction products, and other industrial applications. Northstar Clean Technologies Inc. is based in Delta, Canada.
How the Company Makes MoneyNorthstar Clean Technologies generates revenue by processing and reprocessing asphalt roofing shingles to extract valuable materials such as asphalt, fiberglass, and minerals. The company sells these recovered materials to manufacturers and industries that use them in producing new roofing products or other applications, thus creating a revenue stream. Additionally, Northstar may partner with roofing companies, waste management firms, and municipalities to secure a consistent supply of roofing shingles, which further supports its operational and financial growth. The company's business model capitalizes on the growing demand for sustainable and eco-friendly waste management solutions, leveraging its technology to provide an environmentally responsible alternative to traditional shingle disposal methods.

Northstar Clean Technologies Earnings Call Summary

Earnings Call Date:May 30, 2025
(Q3-2024)
|
% Change Since: 2.86%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant strategic progress in financing, facility development, and partnerships, with some technical and timeline challenges. The sentiment is largely positive due to the strong financial position and strategic advancements.
Q3-2024 Updates
Positive Updates
Financial Position and Strategic Financing
Northstar Clean Technologies ended Q3 2024 with CAD 15.5 million cash, reflecting significant financing transactions, including a CAD 14 million convertible Royalty Debenture with CVW Cleantech. Additionally, the company accessed CAD 1.6 million and CAD 2.7 million from its senior secured debt facility with BDC.
Empower Calgary Facility Development
Northstar incurred CAD 15.1 million in cumulative costs for the Empower Calgary facility, with significant sources of financing available for its completion, including CAD 5.7 million from Emissions Reduction Alberta and CAD 2.4 million from TAMKO.
Patent and Strategic Partnerships
Northstar received a front-end patent from the Canadian Patent Office and announced a strategic financing arrangement with CVW Cleantech, providing a strong flexible financing alternative.
Hamilton Facility Announcement
Northstar signed a letter of intent for a long-term lease for a planned site in Hamilton, Ontario, marking a strategic development in Southern Ontario with strong infrastructure access.
Team Strengthening
Northstar announced a new CFO and VP of Corporate Development, strengthening its management team with expertise in oil, gas, mining, and capital markets.
Negative Updates
Technical Difficulties During Presentation
The earnings call experienced technical issues with the presentation slides, requiring additional assistance to navigate the slides.
Extended Timeline for Calgary Facility Commissioning
The commissioning of the Calgary facility is set for mid-2025, which some investors perceive as a lengthy timeline due to the unique nature of the facility.
Company Guidance
During Northstar Clean Technologies' Q3 2024 earnings call, significant financial metrics and strategic developments were discussed. The company reported a cash position of CAD 15.5 million as of September 30, 2024, bolstered by a CAD 14 million convertible Royalty Debenture with CVW Cleantech and CAD 1.6 million drawn from an CAD 8.7 million senior secured debt facility with the Business Development Bank of Canada (BDC). Subsequent to the quarter's end, an additional CAD 2.7 million was drawn from the BDC facility. Northstar has incurred CAD 15.1 million in cumulative costs for its Empower Calgary facility. The company generated CAD 165,000 in revenue from shingle collections in Q3, contributing to a year-to-date total of CAD 475,000. General and administrative expenditures remained stable at CAD 1.5 million for the quarter. Looking ahead, Northstar plans to achieve mechanical completion of its Calgary facility by year-end, with operations expected by mid-2025. The company also announced a new site in Hamilton, Southern Ontario, aimed at development through 2025 and 2026, supported by strategic partnerships and government engagement.

Northstar Clean Technologies Financial Statement Overview

Summary
Northstar Clean Technologies is facing substantial financial challenges with persistent losses and negative cash flows. The company is highly leveraged with negative equity, raising concerns about its financial stability. Despite these issues, recent revenue growth suggests potential for future improvement if operational efficiencies can be realized.
Income Statement
30
Negative
The company has shown a mild revenue increase but continues to operate at a significant loss, with negative gross and net profit margins. The EBIT and EBITDA margins are deeply negative, indicating operational and financial challenges. However, the recent revenue growth from 2023 to 2024 is a positive sign of potential improvement.
Balance Sheet
20
Very Negative
The balance sheet reveals high leverage with a negative equity position, as liabilities exceed assets. The debt-to-equity ratio is not calculable due to negative equity, indicating financial instability. Return on Equity is also not calculable, further highlighting the company's financial distress.
Cash Flow
25
Negative
The company has negative free cash flow and operating cash flow, reflecting cash management difficulties. A significant capital expenditure suggests investment in growth, yet current cash flow management remains a concern. Financing activities are strong, indicating reliance on external funding for liquidity.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue640.57K206.44K0.000.000.00
Gross Profit-1.22M-913.84K-1.08M-461.97K-323.62K
EBITDA-5.49M-5.18M-7.14M-6.45M-6.10M
Net Income-9.33M-6.67M-8.20M-7.21M-6.60M
Balance Sheet
Total Assets45.73M17.88M6.83M12.37M4.86M
Cash, Cash Equivalents and Short-Term Investments10.23M7.71M1.18M6.01M2.03M
Total Debt39.19M7.34M2.76M2.34M2.16M
Total Liabilities47.06M12.44M4.04M3.10M2.50M
Stockholders Equity-1.33M5.44M2.78M9.27M2.36M
Cash Flow
Free Cash Flow-24.39M-6.38M-6.43M-4.86M-553.00K
Operating Cash Flow-5.13M-4.68M-5.69M-4.09M-117.49K
Investing Cash Flow-18.93M-1.59M-647.89K-1.14M1.54M
Financing Cash Flow26.42M12.72M1.50M9.21M555.25K

Northstar Clean Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.36
Price Trends
50DMA
0.36
Positive
100DMA
0.35
Positive
200DMA
0.32
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
49.95
Neutral
STOCH
23.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROOF, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and above the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROOF.

Northstar Clean Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$14.91B9.646.38%5.29%4.12%-66.77%
TSBLM
64
Neutral
C$50.13M1,928.570.16%49.38%-93.75%
56
Neutral
C$45.84M-2757.94%191.62%-57.36%
TSYES
50
Neutral
C$31.59M-321.92%25.24%34.24%
TSBAC
22
Underperform
C$8.69M55.19%35.14%
TSBQE
C$69.29M9.8638.06%
TSECM
47
Neutral
C$39.82M-2752.20%153.17%43.51%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ROOF
Northstar Clean Technologies
0.36
0.13
56.52%
TSE:BAC
BacTech Environmental
0.04
-0.01
-20.00%
TSE:BLM
BluMetric Environmental
1.35
0.93
221.43%
TSE:BQE
BQE Water
54.00
0.28
0.52%
TSE:ECM
Ecolomondo Corporation
0.18
-0.01
-5.26%
TSE:YES
CHAR Technologies
0.26
-0.07
-21.21%

Northstar Clean Technologies Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Northstar Secures Potential Funding for U.S. Expansion
Positive
Jun 30, 2025

Northstar Clean Technologies has received a non-binding Letter of Interest from Export Development Canada for potential funding to support the establishment of up to four asphalt shingle reprocessing facilities in the United States. This potential funding aligns with Northstar’s growth strategy in the U.S. market, aiming to reduce project costs and enhance shareholder returns, while advancing site selection and securing supply agreements.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Northstar Clean Technologies Advances with Facility Expansions and Secures Funding
Positive
May 30, 2025

Northstar Clean Technologies reported significant progress in the first quarter of 2025, including the completion of construction and commissioning efforts at the Empower Calgary Facility. The company is expanding its operations with new facilities in Hamilton and Delta, and is exploring a U.S. site. Financially, Northstar secured funding from Emissions Reduction Alberta and other sources, despite reporting a comprehensive loss for the quarter. These developments position Northstar for growth in the clean technology sector, with implications for increased operational capacity and market presence.

Private Placements and FinancingBusiness Operations and Strategy
Northstar Completes Final Loan Draw to Advance Calgary Facility Commissioning
Positive
May 20, 2025

Northstar Clean Technologies has completed the final draw of $617,698 from its $8.75 million project loan facility with the Business Development Bank. The funds will support the commissioning of the Empower Environmental Solutions Calgary facility, which is expected to begin operations mid-2025. This move strengthens Northstar’s financial position and supports its mission to become a leader in sustainable asphalt shingle reprocessing, potentially impacting stakeholders by advancing its circular economy goals and reducing landfill waste.

Private Placements and FinancingBusiness Operations and Strategy
Northstar Achieves Key Milestone in Emission Reduction Project
Positive
May 5, 2025

Northstar Clean Technologies has completed the second milestone of its Emission Reduction Alberta (ERA) project, securing a $3.9 million payment. This funding reimburses construction costs for the Empower Calgary Facility, which is now fully funded and ready for expansion in Canada and the U.S. The facility aims to reprocess waste asphalt shingles, reducing landfill waste and providing sustainable solutions for the construction industry.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Northstar Clean Technologies Reports 2024 Financial Results and Expansion Plans
Neutral
Apr 23, 2025

Northstar Clean Technologies Inc. announced its 2024 year-end financial and operational results, highlighting significant progress in the development of its Calgary asphalt reprocessing facility, which is expected to commence operations by mid-2025. The company secured multiple funding sources, including strategic investments and grants, to support its expansion plans, which include a new facility in Hamilton, Ontario, and future operations in the Mid-Atlantic region of the United States. Despite reporting a comprehensive loss for the year, Northstar continues to advance its strategic objectives, positioning itself for growth in the clean technology sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Northstar Advances Commissioning of Calgary Facility with First Product Stream
Positive
Apr 22, 2025

Northstar Clean Technologies Inc. has released the fifth episode of its video series detailing the construction and commissioning of its Empower Calgary Facility, which focuses on asphalt shingle reprocessing. The facility has successfully completed the commissioning of its first processing stage, which separates shingles into aggregate and asphalt-covered fiber, marking the production of its first marketable product stream. This milestone instills confidence in the facility’s commissioning program, with full production anticipated by mid-2025, potentially strengthening Northstar’s position in the sustainable processing industry.

Business Operations and StrategyFinancial Disclosures
Northstar Clean Technologies to Release 2024 Financial Results and Engage with Investors
Neutral
Apr 17, 2025

Northstar Clean Technologies Inc. announced its plan to release its 2024 annual financial results on April 23, 2025, followed by a virtual investor webcast to discuss these results and provide a business update. The company will also participate in the Planet MicroCap Showcase in Las Vegas, where President & CEO Aidan Mills will present. These activities are part of Northstar’s efforts to engage with investors and stakeholders, highlighting its commitment to transparency and growth in the clean technology sector.

Product-Related AnnouncementsBusiness Operations and Strategy
Northstar Secures Second Canadian Patent for Asphalt Shingle Reprocessing
Positive
Apr 7, 2025

Northstar Clean Technologies Inc. has been awarded a second Canadian patent for its proprietary asphalt shingle reprocessing technology, specifically covering the asphalt recovery stage. This patent, expected to last until 2042, strengthens Northstar’s technological advantage as it prepares to begin commercial production at its Calgary facility in mid-2025. The company is positioning itself as a leader in the emerging industry of asphalt shingle reprocessing, with additional patents underway in the US and other international markets, reinforcing its commitment to sustainable practices and technological innovation.

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.Date of analysis: Jul 01, 2025