Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$10.59M
• Dividend Yield: N/A
• Average Volume (3M): 24.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 14.18%
• EPS Growth: -29.19%
• Country: CA
• Employees: 14
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): >-0.01
• Shares Outstanding: 162,861,420
• 10 Day Avg. Volume: 46,938
• 30 Day Avg. Volume: 24,350
• PEG Ratio: 0.47
• Price to Book (P/B): 945.35
• Price to Sales (P/S): 10.21
• P/FCF Ratio: -10.32
• 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: 43 Neutral
• Price Target: C$0.07 ▼(-10.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance and valuation metrics. The technical analysis provides a slightly more neutral outlook, but the financial instability and negative P/E ratio are significant concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company has demonstrated revenue growth of over 14%, indicating expanding market reach and product adoption in the aquaculture industry.

Business Model

The diverse revenue model, combining hardware sales and subscription services, provides a stable income stream and potential for recurring revenue.

Industry Trends

The company's focus on sustainable aquaculture aligns with global trends towards environmental sustainability, potentially driving long-term demand.

Negative Factors

Profitability Challenges

Ongoing operational inefficiencies and negative profit margins indicate struggles in converting sales into profit, impacting long-term viability.

High Leverage

The high leverage and negative equity pose significant financial risks, potentially limiting the company's ability to invest in growth opportunities.

Cash Flow Issues

Negative operating cash flows highlight operational cash generation issues, while reliance on external financing may strain financial flexibility.

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc. provides wastewater heat exchange products and services for commercial, industrial, public utilities, and residential development projects in Canada and internationally. It offers SHARC, a wastewater energy transfer system for industrial filtration, heating, and cooling applications; and PIRANHA, a wastewater heat recovery and cooling system that recovers energy from wastewater and produces hot water. The company was formerly known as International Wastewater Systems Inc. and changed its name to Sharc International Systems Inc. in September 2017. Sharc International Systems Inc. was founded in 2010 and is headquartered in Port Coquitlam, Canada.

How the Company Makes Money

Sharc International Systems Inc generates revenue primarily through the sale of its proprietary monitoring and control systems to aquaculture businesses. The company's revenue model includes direct sales of hardware and software solutions, as well as recurring revenue from subscription-based services that provide ongoing support, data analytics, and system updates. Key revenue streams also involve partnerships with aquaculture farms and distributors, which help to expand market reach and drive sales. Additionally, SHRC may benefit from government grants or funding aimed at promoting sustainable aquaculture practices, further contributing to its earnings.

Sharc International Systems Inc Financial Statement Overview

Summary

Sharc International Systems Inc faces significant financial challenges, with consistent negative EBIT, EBITDA, and net income, indicating operational inefficiencies and a lack of profitability. The high debt levels and negative stockholders' equity highlight financial instability and reliance on debt financing, posing substantial risks.

Income Statement

Sharc International Systems Inc has shown some growth in total revenue over the years, with a notable increase from 2019 to 2024. However, the company consistently reports negative EBIT, EBITDA, and net income, indicating ongoing operational inefficiencies and a lack of profitability. The net profit margin remains negative, highlighting the company's struggle to convert sales into profit.

Balance Sheet

The balance sheet reveals a concerning capital structure with high total debt levels, leading to a negative stockholders' equity in some years. The debt-to-equity ratio is extremely high, indicating significant leverage and potential financial risk. A low equity ratio further shows reliance on debt financing, which poses risks in terms of financial stability.

Cash Flow

The cash flow statement highlights negative operating cash flows, suggesting operational cash generation issues. However, free cash flow shows improvement over time, though it remains negative. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income into cash. Financing cash flow is positive, reflecting reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.47M	2.17M	1.59M	1.94M	2.70M	630.57K
Gross Profit	982.23K	914.22K	-2.21M	560.46K	991.08K	273.09K
EBITDA	-3.49M	-3.47M	-3.50M	-3.80M	-1.81M	-1.95M
Net Income	-3.98M	-3.72M	-3.90M	-4.82M	-3.04M	-2.89M
Balance Sheet
Total Assets	3.02M	3.91M	3.46M	3.15M	5.97M	4.37M
Cash, Cash Equivalents and Short-Term Investments	92.67K	818.26K	1.24M	1.07M	3.15M	3.10M
Total Debt	2.65M	2.16M	141.15K	3.99M	4.99M	5.61M
Total Liabilities	4.32M	3.89M	754.65K	5.10M	5.51M	5.81M
Stockholders Equity	-1.30M	23.41K	2.71M	-1.95M	457.02K	-1.44M
Cash Flow
Free Cash Flow	-2.51M	-2.14M	-3.47M	-1.68M	-2.70M	-2.65M
Operating Cash Flow	-2.49M	-2.12M	-3.46M	-1.56M	-2.59M	-2.63M
Investing Cash Flow	-77.96K	-129.32K	-13.65K	-120.85K	-133.68K	-26.83K
Financing Cash Flow	2.30M	1.83M	3.65M	-401.13K	2.78M	5.65M

Sharc International Systems Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 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:SHRC, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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
GRN	64 Neutral	C$39.24M	277.78	10.00%	―	-30.45%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WATR	47 Neutral	C$4.93M	―	―	―	-72.45%	-987.50%
DST	43 Neutral	C$5.46M	-0.78	―	―	-27.49%	-32.97%
TMG	43 Neutral	C$20.57M	―	-1.51%	―	-3.45%	-104.92%
SHRC	43 Neutral	C$10.59M	―	―	―	14.18%	-29.19%
QST	42 Neutral	C$12.45M	-13.55	-7.42%	―	87.15%	47.74%

Sharc International Systems Inc Corporate Events

SHARC Energy Completes Largest WET Project in North America

SHARC International Systems Inc. has completed the expansion of the False Creek Neighbourhood Energy Utility in Vancouver, making it the largest operating WET project in North America. This expansion, which triples the utility’s capacity to 9.8MW, significantly reduces reliance on the BC Hydro power grid and is expected to cut carbon emissions by 4,400 tonnes annually. The project exemplifies the potential of WET technology to transform wastewater into a renewable energy resource, providing affordable energy rates and a return on investment for the city. SHARC’s technology is increasingly being adopted in urban infrastructure projects, highlighting its role in advancing sustainable energy solutions.

SHARC Energy Highlights Wastewater Energy Innovations at Climate Week NYC

SHARC International Systems Inc. co-hosted a panel during Climate Week NYC, focusing on how technologies like wastewater energy transfer can transform building development. The event highlighted the role of such innovations in creating sustainable, affordable housing and emphasized SHARC Energy’s commitment to collaborating with policymakers and industry leaders to advance these solutions.

SHARC Energy Strengthens Market Position with New Patents

SHARC Energy has secured key patents for its wastewater heat exchange system in the United States and Europe, enhancing its competitive edge in major markets. These patents, along with ongoing global patent filings, are expected to bolster SHARC Energy’s market position and drive growth in orders as the company expands its footprint across North America, Europe, and beyond.

SHARC Energy Recognized as Finalist in Global Climate Innovation Challenge

SHARC Energy has been selected as a Cohort 2 Finalist in the New York Climate Exchange’s Sustainable Solutions Challenge, a global competition for climate change innovations. This recognition highlights SHARC’s wastewater energy transfer technology’s role in creating low-carbon infrastructure, with potential integration into New York’s Climate Hub, and underscores the company’s collaboration with key stakeholders like NYSERDA and Con Edison to advance clean energy solutions.

SHARC Energy Reports Strong Revenue Growth and Expands Market Presence in 2025

SHARC Energy has reported a 19% increase in revenue for the first half of 2025 compared to the same period in 2024, with a total revenue of $1.86 million. The company’s sales order backlog has grown by 3% since May 2025 and represents a 71% improvement over 2024 revenue. SHARC Energy is expanding its footprint in North America with key projects in Ottawa and Vancouver, and is also progressing into new sectors such as wastewater treatment facilities and universities.