Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$11.49M
• Dividend Yield: N/A
• Average Volume (3M): 24.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• 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: 48 Neutral
• Price Target: C$0.07 ▼(-1.43% Downside)

The overall stock score is primarily impacted by significant financial challenges, including ongoing losses and high leverage. Despite positive corporate events and strategic expansions, the stock's technical indicators and valuation metrics reflect bearish sentiment and lack of profitability, leading to a lower overall 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 (SHRC) is a technology company focused on developing innovative solutions for the aquaculture industry. The company specializes in advanced monitoring and control systems that optimize the health and productivity of fish farming operations. SHRC's core products include proprietary software and hardware systems designed to improve feeding efficiency, reduce waste, and enhance overall operational performance in aquaculture settings.

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 lack of profitability. The balance sheet shows high leverage and financial risk, with negative stockholders' equity in some years. Cash flow issues persist, with negative operating cash flows and reliance on external financing.

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	2.51M	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: 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 Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	76 Outperform	C$41.55M	19.36	19.05%	―	-13.85%	-60.15%
GRN	64 Neutral	C$37.92M	15.67	10.00%	―	-30.45%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SHRC	48 Neutral	C$11.49M	-2.93	―	―	14.18%	-29.19%
WATR	47 Neutral	C$4.93M	-2.21	―	―	-68.14%	-209.09%
QST	45 Neutral	C$10.97M	-6.93	-7.42%	―	87.15%	47.74%
TMG	45 Neutral	C$21.43M	-433.33	-1.51%	―	-3.45%	-104.92%

Sharc International Systems Inc Corporate Events

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.

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.