Want to see LOOP full AI Analyst Report?
Top Page
Loop Industries
(NASDAQ:LOOP)
Select Model
Select Model
Rating:40Underperform
Price Target:
$0.40
▼(-17.08% Downside)
Action:Downgraded
Date:09/18/26
The score is driven primarily by very weak financial performance (deep losses, negative equity, and persistent cash burn) and bearish technicals (price below all key moving averages with negative MACD). Corporate events provide some strategic and governance positives, but Nasdaq listing compliance issues and the lack of earnings-based valuation support keep overall risk elevated.
Positive Factors
Commercial licensing framework
The ELITe agreement establishes a long-term commercialization framework tied to production and sales, giving Loop potential royalty, marketing, and service-fee income. If ELITe scales facilities successfully, the arrangement could expand Loop’s reach without requiring the company to build every plant itself.
Negative Factors
Deep unprofitability
Extremely negative gross and net margins show that current activity is not covering the cost structure and that operating leverage has not yet emerged. Revenue volatility and a roughly 14% TTM decline make a durable path to profitability less visible over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial licensing framework
The ELITe agreement establishes a long-term commercialization framework tied to production and sales, giving Loop potential royalty, marketing, and service-fee income. If ELITe scales facilities successfully, the arrangement could expand Loop’s reach without requiring the company to build every plant itself.
Read all positive factors
Loop Industries (LOOP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.27M
Dividend YieldN/A
Average Volume (3M)167.78K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-96.04%
EPS Growth9.12%
CountryUS
Employees38
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.25
Shares Outstanding48,380,370
10 Day Avg. Volume96,391
30 Day Avg. Volume167,780
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 Cap4.03
Enterprise Value/Revenue185.04
Enterprise Value/Gross Profit-84.30
Enterprise Value/Ebitda-7.71
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$1.07M
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:May 27, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Positive
The call presented multiple concrete commercial milestones (India MOU, site selection in Europe), material CapEx improvement (~$20M-$25M reduction), progressing debt term sheets and near-term engineering revenue opportunities, reflecting clear commercial momentum and improved project economics. However, meaningful execution risks remain: debt close is contingent on 50% contracted offtakes, several customers are only offering LOIs, near-term liquidity covers only through year-end without additional secured revenues, and pricing/FX volatility could affect realized margins. On balance, the positive operational and commercial developments materially outweigh the conditional risks identified.Positive Updates
Government MOU and Site Alignment in India
Infinite Loop India signed a memorandum of understanding with the Government of Gujarat providing formal alignment to streamline permitting, infrastructure coordination and administrative processes; selected site can support multiple manufacturing facilities and the first Indian facility is expected to be operational in calendar year 2028.
Negative Updates
Financing Contingent on Offtake Commitments
Debt financing is contingent on having 50% of the India facility capacity contracted in minimum three-year agreements; securing those long-term offtakes is challenging because many brands are reluctant to commit to multi-year supply contracts that begin years before delivery.
Read all updates
Q4-2026 Updates
Positive
Negative
Government MOU and Site Alignment in India
Infinite Loop India signed a memorandum of understanding with the Government of Gujarat providing formal alignment to streamline permitting, infrastructure coordination and administrative processes; selected site can support multiple manufacturing facilities and the first Indian facility is expected to be operational in calendar year 2028.
Read all positive updates
Company Guidance
Loop guided that the Infinite Loop India greenfield facility now has an estimated total CapEx of approximately $165–$170 million (down from about $190M), including roughly $115M of construction costs, and is expected to be operational in calendar year 2028; financing is expected to be ~70% debt / 30% equity (Loop ~15% equity, partner Ester ~15%), with debt syndication moving into technical due diligence at Terrebonne (scope expected to be finalized by end‑June to mid‑July) and closing contingent on having at least 50% of plant volume signed in minimum three‑year offtake contracts; Loop would own 50% of the JV and earn a 5% royalty (Nike’s existing deal is a three‑year fixed‑price, fixed‑volume contract with 40% take‑or‑pay), engineering and feasibility work (European feasibility ~6 months) should drive meaningful engineering services revenue within weeks/months and help fund back‑office spend for years, the company has non‑dilutive NRC‑IRAP support of up to CAD 2.9M through October 2027, and management reiterated targets of roughly 45% EBITDA margin (previously cited ~$50–$60M EBITDA) with an estimated payback of ~1.5–2.5 years; additionally, PET prices are up ~30–50% year‑to‑date and the company expects material pricing bands (ICIS) around a ~€275/ton range.Loop Industries Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
14
Very Negative
| Breakdown | TTM | Feb 2026 | Feb 2024 | Feb 2023 | Feb 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 441.00K | 514.00K | 10.89M | 153.00K | 172.84K | 0.00 |
| Gross Profit | -968.00K | -251.00K | 10.37M | -382.00K | -377.28K | -548.23K |
| EBITDA | -10.58M | -9.74M | -13.91M | -20.36M | -20.56M | -44.22M |
| Net Income | -12.24M | -12.30M | -15.06M | -21.09M | -21.30M | -44.92M |
Balance Sheet | ||||||
| Total Assets | 6.70M | 8.56M | 18.58M | 20.55M | 40.56M | 59.22M |
| Cash, Cash Equivalents and Short-Term Investments | 1.06M | 2.36M | 12.97M | 6.96M | 29.59M | 44.06M |
| Total Debt | 3.01M | 3.04M | 3.08M | 3.32M | 3.30M | 3.38M |
| Total Liabilities | 18.72M | 18.14M | 18.21M | 6.41M | 6.82M | 13.23M |
| Stockholders Equity | -12.02M | -9.58M | 367.00K | 14.14M | 33.74M | 45.99M |
Cash Flow | ||||||
| Free Cash Flow | -8.26M | -10.32M | -2.57M | -23.68M | -35.93M | -48.10M |
| Operating Cash Flow | -8.26M | -10.11M | -2.12M | -18.03M | -34.89M | -42.98M |
| Investing Cash Flow | -1.09M | -1.17M | -2.04M | -5.64M | 21.28M | -5.11M |
| Financing Cash Flow | 733.00K | 678.00K | 10.32M | -75.00K | 1.01M | 56.99M |
Loop Industries Technical Analysis
Negative
0.48
Price Trends
0.54
Negative
0.76
Negative
1.02
Negative
Market Momentum
-0.04
Negative
37.85
Neutral
25.81
Neutral
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 0.46, below the 50-day MA of 0.54, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 is Neutral, 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 | $1.01B | 8.01 | 15.54% | 3.34% | -21.51% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | $77.29M | -24.69 | -8.12% | 2.35% | -4.66% | -201.32% | |
51 Neutral | $326.35M | -1.46 | -51.42% | ― | 121.37% | -264.53% | |
50 Neutral | $73.03M | -59.80 | -1.60% | 0.52% | 7.70% | -139.19% | |
40 Underperform | $20.27M | -1.66 | 142.32% | ― | -96.04% | 9.12% |
* Basic Materials Sector Average
LOOP
Loop Industries
0.42
-1.26
-75.06%
FSI
Flexible Solutions International
6.05
-2.76
-31.33%
GEVO
Gevo
1.32
-1.05
-44.30%
GPRE
Green Plains
14.34
4.38
43.98%
NTIC
Northern Technologies International
7.69
-0.08
-1.04%
CNEY
CN Energy Group
0.49
-1.60
-76.60%
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.