Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$10.67M
• Dividend Yield: N/A
• Average Volume (3M): 24.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• 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: 164,144,420
• 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: 42 Neutral
• Price Target: C$0.08 ▲(10.00% Upside)

The score is primarily weighed down by weak financial performance—persistent heavy losses, ongoing cash burn, and negative equity—despite strong recent revenue growth. Technicals also lean negative with the stock below major moving averages and a negative MACD, while valuation is constrained by unprofitable earnings and no dividend support.

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

Despite very strong TTM revenue growth (181.8%), fundamentals remain weak: sharply lower gross margin (~18.5% vs ~42.2% in 2024), large operating and net losses (TTM net margin around -154%), negative operating/free cash flow (~-$2.9M), and a pressured balance sheet with negative equity (~-$1.9M) and debt (~$3.5M) exceeding assets (~$2.95M).

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing strongly versus the prior annual period (revenue growth 181.8%), but profitability remains very weak: gross margin has fallen sharply (TTM ~18.5% vs 2024 ~42.2%), and the company continues to post large operating losses and net losses (TTM net margin around -154%). While the top-line trajectory is improving, the current cost structure is not translating growth into earnings.

Balance Sheet

The balance sheet is pressured by negative equity in TTM (stockholders’ equity about -$1.9M), which signals a thin capital cushion and elevates financial risk. Debt is meaningful relative to the asset base (TTM debt ~$3.5M vs assets ~$2.95M), and leverage metrics are distorted by negative/near-zero equity across periods (e.g., extremely high debt-to-equity in 2024). Overall, the company appears balance-sheet constrained with limited flexibility until equity is rebuilt.

Cash Flow

Cash generation remains a key weakness: TTM operating cash flow is negative (~-$2.9M) and free cash flow is also negative (~-$2.9M), indicating ongoing cash burn. While free cash flow growth is reported as improving in TTM, the business is still not self-funding, and negative operating cash flow suggests the company may need external financing to sustain operations if conditions do not improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.51M	2.17M	1.59M	1.94M	2.70M	630.57K
Gross Profit	464.36K	914.22K	-2.21M	560.46K	991.08K	273.09K
EBITDA	-3.32M	-3.47M	-3.50M	-3.80M	-1.81M	-1.95M
Net Income	-3.88M	-3.72M	-3.90M	-4.82M	-3.04M	-2.89M
Balance Sheet
Total Assets	2.95M	3.91M	3.46M	3.15M	5.97M	4.37M
Cash, Cash Equivalents and Short-Term Investments	259.22K	818.26K	1.24M	1.07M	3.15M	3.10M
Total Debt	3.49M	2.16M	141.15K	3.99M	4.99M	5.61M
Total Liabilities	4.86M	3.89M	754.65K	5.10M	5.51M	5.81M
Stockholders Equity	-1.91M	23.41K	2.71M	-1.95M	457.02K	-1.44M
Cash Flow
Free Cash Flow	-2.94M	-2.14M	-3.47M	-1.68M	-2.70M	-2.65M
Operating Cash Flow	-2.92M	-2.12M	-3.46M	-1.56M	-2.59M	-2.63M
Investing Cash Flow	-76.66K	-129.32K	-13.65K	-120.85K	-133.68K	-26.83K
Financing Cash Flow	1.43M	1.83M	3.65M	-401.13K	2.78M	5.65M

Sharc International Systems Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHRC, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 22.98 is Positive, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
BRM	71 Outperform	C$39.00M	21.18	19.05%	―	-13.85%	-60.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRN	63 Neutral	C$33.97M	14.67	10.00%	―	-30.45%	―
TMG	54 Neutral	C$32.44M	65.00	-1.51%	―	-3.45%	-104.92%
WATR	45 Neutral	C$4.93M	-2.94	―	―	-68.14%	-209.09%
QST	44 Neutral	C$10.69M	-6.41	-7.42%	―	87.15%	47.74%
SHRC	42 Neutral	C$10.67M	-2.72	―	―	14.18%	-29.19%

Sharc International Systems Inc Corporate Events

SHARC Energy Adds Sustainability and Capital Markets Expertise to Board

SHARC Energy has strengthened its board of directors with the appointments of sustainable building pioneer Kevin Hydes and capital markets specialist Shane Dungey, bolstering its governance with expertise that directly aligns with its focus on deploying wastewater-based thermal energy systems. Hydes brings decades of leadership in green building design, policy and decarbonization, while Dungey adds extensive experience in global capital markets, corporate strategy and public company governance; together, their appointments are intended to support SHARC Energy’s global scaling efforts, accelerate adoption of its Wastewater Energy Transfer technology in buildings and district energy systems, and enhance long-term growth and shareholder value creation.

The most recent analyst rating on (TSE:SHRC) stock is a Sell with a C$0.06 price target. To see the full list of analyst forecasts on Sharc International Systems Inc stock, see the TSE:SHRC Stock Forecast page.

SHARC Energy Cancels More Than 2.3 Million Incentive Stock Options

SHARC Energy has cancelled a total of 2,363,854 incentive stock options effective December 31, 2025, covering multiple tranches with exercise prices ranging from $0.245 to $0.335 and expiries between 2023 and 2029. The move adjusts the company’s equity-based compensation structure, which may affect dilution expectations and signals a recalibration of management and employee incentives as the wastewater energy recovery specialist positions itself within the evolving clean energy and district heating markets.

The most recent analyst rating on (TSE:SHRC) stock is a Hold with a C$0.07 price target. To see the full list of analyst forecasts on Sharc International Systems Inc stock, see the TSE:SHRC Stock Forecast page.

SHARC Energy Reports Record Revenue Growth and Strategic Expansion

SHARC Energy reported a significant increase in revenue for the first nine months of 2025, achieving $2.69 million, a 15% rise compared to the same period in 2024. The company’s sales order backlog and pipeline are evolving, with expectations to exceed $3 million in revenue by year-end, marking a record achievement. SHARC Energy is strategically diversifying into new market sectors, which is expected to reshape its growth profile and reduce regulatory barriers, promising a transformational 2026.

The most recent analyst rating on (TSE:SHRC) stock is a Hold with a C$0.07 price target. To see the full list of analyst forecasts on Sharc International Systems Inc stock, see the TSE:SHRC Stock Forecast page.