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Loop Industries
(NASDAQ:LOOP)
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Rating:43Neutral
Price Target:
$0.24
▼(-49.79% Downside)
Action:Upgraded
Date:10/16/26
The score is held down primarily by weak financial performance (deep losses, significant cash burn, and negative equity) and bearish technicals (price below all major moving averages and negative MACD). The earnings call provides some offset via improved commercialization readiness and cost reductions, but financing uncertainty and limited liquidity remain the dominant near-term risks; valuation metrics are not supportive due to ongoing losses and no dividend yield.
Positive Factors
Commercial licensing platform
The licensing and marketing framework creates a scalable route to commercialize Loop’s technology without relying solely on company-owned plants. Royalty and sales-linked fees could provide recurring participation in partner growth while aligning Loop with production and customer expansion.
Negative Factors
Persistent unprofitable operations
The company has not yet demonstrated a stable, scalable profit model. Very low TTM revenue alongside negative gross profit and substantial operating losses means future projects must reach meaningful utilization before they can offset corporate costs and establish sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial licensing platform
The licensing and marketing framework creates a scalable route to commercialize Loop’s technology without relying solely on company-owned plants. Royalty and sales-linked fees could provide recurring participation in partner growth while aligning Loop with production and customer expansion.
Read all positive factors
Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.54M
Dividend YieldN/A
Average Volume (3M)153.59K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-94.98%
EPS Growth-1.55%
CountryUS
Employees38
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.25
Shares Outstanding48,812,572
10 Day Avg. Volume142,672
30 Day Avg. Volume153,587
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)-6.51
Price to Sales (P/S)121.30
P/FCF Ratio-6.04
Enterprise Value/Market Cap3.16
Enterprise Value/Revenue70.97
Enterprise Value/Gross Profit-45.62
Enterprise Value/Ebitda-3.83
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$1.02M
Loop Industries Business Overview & Revenue Model
Company Description
Loop Industries Inc., a technology firm, specializes in chemically recycling discarded polyethylene terephthalate (PET) plastics and polyester textiles, breaking them down into their fundamental molecular components. From these constituent monomer...
How the Company Makes Money
Loop Industries’ intended revenue model centers on commercializing its PET recycling technology and selling recycled resin/products produced using that technology. Key ways the company has sought to generate revenue include: (1) Technology licensi...
Loop Industries Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 14, 2027
Earnings Call Sentiment Positive
The call was predominantly positive on the India commercialization project, with a smaller facility expected to reduce capital requirements, positive lender discussions, over 50% of capacity covered by contracts or commitments, declining operating expenses and continued investor interest. However, construction remains conditional on securing financing, available liquidity was $1.9 million, and the final project cost and equity requirement were not yet known.Positive Updates
India Facility Resized to Reduce Capital Requirements
The first India facility was resized from 70 thousand kilotons per annum to 45 thousand kilotons per annum. Management said the change will significantly lower capital costs, debt and equity financing needs, and allow for a faster construction timeline. If funding is secured, construction is expected to begin in Q1 calendar 2027 and commercial production is expected by the end of calendar 2028.
Negative Updates
Financing Remains Unsecured
Securing financing is the final step before construction can begin. The special committee is actively working with advisers on financing alternatives, but management said it cannot promise the amount, structure or timing until financing is completed. Management described funding the first facility as likely to be the hardest financing the company will have to do.
Read all updates
Q2-2027 Updates
Positive
Negative
India Facility Resized to Reduce Capital Requirements
The first India facility was resized from 70 thousand kilotons per annum to 45 thousand kilotons per annum. Management said the change will significantly lower capital costs, debt and equity financing needs, and allow for a faster construction timeline. If funding is secured, construction is expected to begin in Q1 calendar 2027 and commercial production is expected by the end of calendar 2028.
Read all positive updates
Company Guidance
Management expects the first India facility to be reduced from 70 thousand kilotons to 45 thousand kilotons per annum, with construction beginning in Q1 calendar of 2027 and construction and commissioning taking a total of 20 months, allowing the plant to be up and running commercially producing material by the end of 2028 if funding is secured; the final cost estimate is expected in the coming weeks and definitely before year end. The company said the equity contribution is in the area of $20 million, while banks seem realistic to finance 70% of the project, leaving 30% equity split evenly between Loop and Ester, with Loop’s portion about 15% of total project cost; the prior 165 to 170 million dollar facility implied 25 to 30 in that range for Loop, the cost will come down but may not come down by 40%, and Loop has already contributed in the 3 to $5 million range. More than 50% of the 45 thousand size facility is covered by committed LOIs or contracts, feedstock is available for a total of at least 170 thousand tons, and the second facility could grow to 125 thousand tons.Loop Industries Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Feb 2026 | Feb 2024 | Feb 2023 | Feb 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 558.00K | 514.00K | 10.89M | 153.00K | 172.84K | 0.00 |
| Gross Profit | -868.00K | -251.00K | 10.37M | -382.00K | -377.28K | -548.23K |
| EBITDA | -10.34M | -9.74M | -13.91M | -20.36M | -20.56M | -44.22M |
| Net Income | -12.02M | -12.30M | -15.06M | -21.09M | -21.30M | -44.92M |
Balance Sheet | ||||||
| Total Assets | 6.37M | 8.56M | 18.58M | 20.55M | 40.56M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 836.00K | 2.36M | 12.97M | 6.96M | 29.59M | 44.06M |
| Total Debt | 4.29M | 3.04M | 3.08M | 3.32M | 3.30M | 3.38M |
| Total Liabilities | 7.70M | 18.14M | 18.21M | 6.41M | 6.82M | 13.23M |
| Stockholders Equity | -1.33M | -9.58M | 367.00K | 14.14M | 33.74M | 45.99M |
Cash Flow | ||||||
| Free Cash Flow | -7.06M | -10.32M | -2.57M | -23.68M | -35.93M | -48.10M |
| Operating Cash Flow | -6.90M | -10.11M | -2.12M | -18.03M | -34.89M | -42.98M |
| Investing Cash Flow | -1.86M | -1.17M | -2.04M | -5.64M | 21.28M | -5.11M |
| Financing Cash Flow | 2.36M | 678.00K | 10.32M | -75.00K | 1.01M | 56.99M |
Loop Industries Technical Analysis
Negative
0.48
Price Trends
0.45
Negative
0.63
Negative
0.98
Negative
Market Momentum
-0.06
Positive
27.07
Positive
5.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOOP, the sentiment is Negative. The current price of 0.48 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.45, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 27.07 is Positive, neither overbought nor oversold. The STOCH value of 5.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOOP.
Loop Industries Risk Analysis
Loop Industries disclosed 28 risk factors in its most recent earnings report. Loop Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Loop Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $945.59M | 7.54 | 15.54% | 3.34% | -21.51% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | $79.97M | -25.55 | -8.12% | 2.35% | -4.66% | -201.32% | |
50 Neutral | $71.13M | -58.24 | -1.60% | 0.53% | 7.70% | -139.19% | |
47 Neutral | $289.27M | -1.30 | -51.42% | ― | 121.37% | -264.53% | |
43 Neutral | $12.54M | -1.05 | 158.94% | ― | -94.98% | -1.55% |
* Basic Materials Sector Average
LOOP
Loop Industries
0.26
-1.49
-85.31%
FSI
Flexible Solutions International
6.26
-3.03
-32.62%
GEVO
Gevo
1.17
-1.16
-49.79%
GPRE
Green Plains
13.49
3.15
30.46%
NTIC
Northern Technologies International
7.49
-0.16
-2.10%
CNEY
CN Energy Group
0.55
-1.33
-70.80%
Loop Industries Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Loop Industries Posts Updated Investor Presentation Disclosure
Neutral
Oct 1, 2026
On October 1, 2026, Loop Industries, Inc. posted an additional investor presentation to the Investors section of its website, and furnished the same materials in a Current Report on Form 8-K. The presentation, made available as part of the company...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Loop Industries Forms Strategic Alternatives Committee for Growth
Positive
Sep 17, 2026
On September 17, 2026, Loop Industries announced that its Board of Directors has formed a Strategic Alternatives Committee to advance commercialization, strengthen its capital position and maximize long-term shareholder value. The move follows the...
Business Operations and StrategyExecutive/Board Changes
Loop Industries Names Jeff Geygan Board Chairman
Positive
Sep 8, 2026
On September 8, 2026, Loop Industries appointed investment manager Jeff Geygan as Chairman of the Board, while founder and CEO Daniel Solomita stepped down as Chairman but stayed on as CEO and Director. The company says the separation of roles all...
Executive/Board ChangesShareholder Meetings
Loop Industries Shareholders Approve Directors and Governance Measures
Positive
Aug 28, 2026
At its 2026 Annual Meeting of Stockholders held virtually on July 23, 2026, Loop Industries, Inc. shareholders elected six directors — Laurent Auguste, Spencer Hart, Louise Sams, Laurence Sellyn, Jay Stubina and Jeffrey R. Geygan — to ...
Business Operations and Strategy
Loop Industries inks strategic licensing and marketing deals
Positive
Aug 19, 2026
On August 13, 2026, Loop Industries entered into a License Agreement with ELITe, and, for certain provisions, Ester, granting ELITe a perpetual, exclusive, royalty-bearing license to use Loop’s depolymerization technology to build and operat...
Delistings and Listing ChangesRegulatory Filings and Compliance
Loop Industries Faces Nasdaq Listing Compliance Challenges
Negative
Jul 29, 2026
On July 24, 2026, Loop Industries received notice from Nasdaq that it had fallen below the $50 million minimum market value of listed securities requirement for 30 consecutive business days, giving the company until January 20, 2027 to regain comp...
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.