Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$15.18M
• Dividend Yield: N/A
• Average Volume (3M): 17.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 36.07%
• EPS Growth: 14.29%
• Country: CA
• Employees: 14
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 159,762,420
• 10 Day Avg. Volume: 36,489
• 30 Day Avg. Volume: 17,860
• PEG Ratio: -1.56
• Price to Book (P/B): 12.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.41
• 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

Sharc International Systems Inc's stock score is heavily influenced by its financial challenges, including negative profitability and high leverage. Despite some positive technical momentum and strategic corporate events, the persistent financial instability and negative valuation metrics keep the overall outlook cautious.

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc (SHRC) is a company operating in the clean technology sector, focusing on innovating and providing advanced wastewater heat recovery solutions. The company's core products include the SHARC and PIRANHA systems, which are designed to capture, store, and distribute thermal energy from wastewater, thus offering energy-efficient and environmentally friendly alternatives for heating and cooling applications in various settings, such as residential, commercial, and industrial buildings.

How the Company Makes Money

Sharc International Systems Inc generates revenue through the sale and licensing of its proprietary heat recovery systems, primarily the SHARC and PIRANHA systems. These systems are sold to building developers, operators, and energy service companies who are seeking to enhance energy efficiency and reduce carbon emissions in their projects. The company may also earn income from maintenance services, system installations, and potentially through partnerships or collaborations with energy companies and government bodies interested in sustainable energy solutions. Significant factors contributing to its earnings include the global push for greener technologies and regulatory support for reducing carbon footprints, which drive demand for their innovative solutions.

Sharc International Systems Inc Financial Statement Overview

Summary

Sharc International Systems Inc exhibits some revenue growth and slight improvements in equity, but the company faces significant financial difficulties. Persistent negative margins, high leverage, and cash flow challenges underscore the need for strategic adjustments to achieve financial stability and profitability.

Income Statement

The company has shown some growth in revenue with a 38.3% increase from the previous year. However, the net profit margin and gross profit margin remain negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, pointing to operational inefficiencies and significant financial losses.

Balance Sheet

The balance sheet reveals a high level of debt compared to equity, with a debt-to-equity ratio that indicates potential financial instability. Although the company has increased its equity from negative to positive territory, the equity ratio remains modest at 28.7%, reflecting a low proportion of assets financed by equity.

Cash Flow

The cash flow statement shows a negative operating cash flow, but there has been a significant improvement in free cash flow compared to prior periods. However, the free cash flow to net income ratio remains unfavorable, indicating cash flow challenges relative to reported losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.20M	1.59M	1.94M	2.70M	630.57K	143.58K
	Gross Profit
79.65K	656.27K	560.46K	991.08K	273.09K	76.91K
	EBIT
-2.20M	-3.30M	-3.84M	-1.97M	-2.51M	-2.52M
	EBITDA
-2.83M	-3.50M	-3.80M	-1.81M	-1.95M	-2.57M
	Net Income Common Stockholders
-2.92M	-3.90M	-4.82M	-3.04M	-2.89M	-3.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.90M	1.24M	1.07M	3.15M	3.10M	109.51K
	Total Assets
5.88M	3.46M	3.15M	5.97M	4.37M	1.07M
	Total Debt
4.46M	141.15K	3.99M	4.99M	5.61M	5.81M
	Net Debt
2.56M	-1.10M	2.92M	1.84M	2.50M	5.70M
	Total Liabilities
8.17M	754.65K	5.10M	5.51M	5.81M	7.02M
	Stockholders Equity
-2.29M	2.71M	-1.95M	457.02K	-1.44M	-5.95M
Cash Flow		Free Cash Flow
-1.94M	-3.47M	-1.68M	-2.70M	-2.65M	-2.18M
	Operating Cash Flow
-1.93M	-3.46M	-1.56M	-2.59M	-2.63M	-2.15M
	Investing Cash Flow
-8.74K	-13.65K	-120.85K	-133.68K	-26.83K	-2.94M
	Financing Cash Flow
1.76M	3.65M	-401.13K	2.78M	5.65M	3.30M

Sharc International Systems Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHRC, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.58 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:SHRC.

Sharc International Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
GRN	61 Neutral	C$14.12M	―	-5.60%	―	-10.37%	95.22%
TMG	61 Neutral	C$17.31M	111.11	4.63%	―	14.78%	-90.82%
WATR	47 Neutral	C$4.58M	―	-143.77%	―	-49.88%	-266.67%
SHRC	45 Neutral	C$15.18M	―	-272.36%	―	36.07%	14.29%
DST	43 Neutral	C$10.27M	―	23.34%	―	-41.98%	-123.77%
QST	42 Neutral	C$8.26M	―	-14.23%	―	-37.13%	32.21%

Sharc International Systems Inc Corporate Events

SHARC Energy Powers Sustainable Development in Ottawa

SHARC International Systems Inc. has announced the integration of its SHARC 880 Wastewater Energy Transfer systems into Ottawa’s LeBreton Flats redevelopment, marking a significant advancement in sustainable urban energy solutions. This initiative, a collaboration between Envari Holding Inc., Theia Partners, and the City of Ottawa, aims to provide 9 Megawatts of heating and cooling while reducing greenhouse gas emissions by approximately 5,066 tonnes annually, positioning the project as a model for sustainable community energy infrastructure in Canada.

Spark’s Take on TSE:SHRC Stock

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

Sharc International Systems Inc’s overall stock score is driven by its significant financial challenges, with persistent negative margins and high leverage being key concerns. Technical analysis indicates some short-term positive momentum, but long-term sustainability remains questionable. The negative P/E ratio reflects ongoing profitability issues, which, combined with the lack of earnings call and corporate events data, results in a cautious outlook.

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

SHARC Energy Announces Strategic Board Changes to Drive Growth

SHARC Energy has announced significant changes to its Board of Directors, with Fred Andriano appointed as the new Chairman, replacing founder Lynn Mueller who will remain as Vice Chairman. This strategic move, alongside the recent appointment of a new CEO, is expected to accelerate the company’s growth and enhance its market expansion. The company also announced the retirement of Eleanor Chiu, a long-standing board member, who leaves as a strong supporter and shareholder. These changes are seen as pivotal in positioning SHARC Energy as a key player in the wastewater energy transfer industry, with a focus on leveraging its products and expanding its geographical reach.

Spark’s Take on TSE:SHRC Stock

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

Sharc International Systems Inc’s overall stock score is driven by its significant financial challenges, with persistent negative margins and high leverage being key concerns. Technical analysis indicates some short-term positive momentum, but long-term sustainability remains questionable. The negative P/E ratio reflects ongoing profitability issues, which, combined with the lack of earnings call and corporate events data, results in a cautious outlook.

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

SHARC Energy Reports Strong Revenue Growth and Expanding Project Pipeline for 2025

SHARC Energy reported a 36% increase in revenue for the year ending December 31, 2024, reaching $2.17 million, with a notable improvement in its Sales Order Backlog, which stands at $3.0 million. The company is optimistic about continued growth in 2025, with a strong pipeline of projects and increasing diversification and stability in its revenue streams. SHARC Energy’s focus on Thermal Energy Networks is gaining traction, with several projects underway in North America, supported by favorable legislation in the United States, indicating a promising outlook for future expansion.

Spark’s Take on TSE:SHRC Stock

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

Sharc International Systems Inc’s overall stock score is driven by its significant financial challenges, with persistent negative margins and high leverage being key concerns. Technical analysis indicates some short-term positive momentum, but long-term sustainability remains questionable. The negative P/E ratio reflects ongoing profitability issues, which, combined with the lack of earnings call and corporate events data, results in a cautious outlook.

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