Tantalus Systems Holding (GRID) AI Stock Analysis

• Market Cap: C$165.62M
• Dividend Yield: N/A
• Average Volume (3M): 63.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 24.53%
• EPS Growth: 7.85%
• Country: CA
• Employees: 134
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.03
• Shares Outstanding: 51,434,155
• 10 Day Avg. Volume: 51,995
• 30 Day Avg. Volume: 63,612
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$4.23
• Price Target Upside: 32.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: C$3.00 ▼(-5.96% Downside)

Tantalus Systems Holding faces significant challenges with profitability and financial stability, as reflected in its financial performance and valuation scores. The technical analysis suggests a neutral trend, providing no strong momentum to offset these concerns. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The company demonstrates moderate revenue growth, indicating a positive trend in market demand for its smart grid solutions, which can enhance long-term business prospects.

Cash Conversion

A strong free cash flow to net income ratio suggests effective cash generation, supporting liquidity and potential reinvestment in growth opportunities.

Gross Profit Margin

A healthy gross profit margin indicates efficient production and cost management, providing a buffer against market fluctuations and supporting profitability.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected by a negative net profit margin, could hinder the company's ability to reinvest in growth and maintain competitive positioning.

High Leverage

Significant leverage poses financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to economic downturns.

Decline in Free Cash Flow

A decline in free cash flow growth can strain liquidity, affecting the company's ability to fund operations and invest in strategic initiatives.

Tantalus Systems Holding Business Overview & Revenue Model

Company Description

Tantalus Systems Holding Inc. operates as a smart grid technology company in North America and the Caribbean Basin. The company offers TRUEdge Communication Modules, a Linux-based platform that is integrated into networked devices, including meters, sensors, controllers, and switches deployed across the utility's distribution grid for real-time two-way secure communication of operational information; Tantalus Utility Network (TUNet) Infrastructure Devices for collecting near real-time data and controlling endpoints to enhance the stability, efficiency, and reliability of their distribution grids; and TRUSense Fiber Gateway, a fiber-to-the-home solution. It also provides TCC that accumulates and processes the data that has been pushed from the TUNet communications network in near real-time; and TUNet Insight, a digital user interface delivering a visualization tool that allows utilities to monitor and control the TUNet system for a suite of utility software applications, including advanced metering infrastructure, load management system and distributed energy resource integration solution; grid optimization and distribution automation solution; C.IQ, a software platform that enables the interoperability of a range of devices; TRULight Intelligence, a lighting control solution. In addition, the company offers professional services, including program and project planning, radio frequency propagation design, network systems design, system optimization, deployment support, third party software and systems integration, project management, field maintenance, storm restoration, consulting services, and training; project management services comprising turnkey installation of meters and network infrastructure using third-party partner installers; managed services, such as monitoring the performance of the TCC and network communications, providing alerts, and planning disaster response; and technical support services. Tantalus Systems Holding Inc. is based in Burnaby, Canada.

How the Company Makes Money

Tantalus Systems Holding Inc. generates revenue primarily through the sale of its smart grid solutions to utility companies. The key revenue streams include one-time sales of hardware products like smart meters and recurring revenues from software subscriptions and maintenance contracts. The company often enters long-term agreements with utilities, providing ongoing services and upgrades. Additionally, Tantalus may engage in strategic partnerships with other technology providers to expand its offerings and reach. These partnerships can contribute to revenue through co-development projects or joint sales initiatives.

Tantalus Systems Holding Financial Statement Overview

Summary

Tantalus Systems Holding shows moderate revenue growth but struggles with profitability, indicated by a negative net profit margin and high leverage. The cash flow metrics are mixed, with some strengths in liquidity but overall financial instability.

Income Statement

Tantalus Systems Holding shows a moderate revenue growth rate of 5.02% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative net profit margin of -3.68% and an EBIT margin of -0.68% TTM. The gross profit margin is relatively healthy at 54.50% TTM, suggesting efficient production processes. Despite these strengths, the consistent negative net income over recent periods highlights ongoing profitability challenges.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 1.95 TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -25.99% TTM, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is not directly provided, but the high leverage suggests a low proportion of equity in the asset base. These factors point to financial instability and potential risk in meeting long-term obligations.

Cash Flow

Tantalus Systems Holding's cash flow statement indicates a decline in free cash flow growth by -24.66% TTM, which is concerning. However, the operating cash flow to net income ratio of 0.20 TTM suggests that the company is generating cash relative to its net income, albeit at a modest level. The free cash flow to net income ratio of 0.91 TTM is relatively strong, indicating that the company is able to convert a significant portion of its net income into free cash flow, which is a positive sign for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.17M	44.31M	42.15M	39.60M	32.17M	33.05M
Gross Profit	26.59M	24.02M	21.86M	18.90M	14.35M	16.12M
EBITDA	1.56M	722.72K	1.52M	-3.91M	-4.90M	1.26M
Net Income	-1.63M	-2.63M	-1.69M	-5.20M	-7.02M	1.48M
Balance Sheet
Total Assets	39.23M	41.55M	34.80M	37.36M	31.03M	23.53M
Cash, Cash Equivalents and Short-Term Investments	11.18M	13.22M	5.15M	5.85M	14.20M	4.65M
Total Debt	8.82M	12.82M	14.37M	13.84M	12.11M	8.66M
Total Liabilities	33.26M	34.61M	32.48M	33.78M	24.24M	25.84M
Stockholders Equity	5.97M	6.94M	2.32M	3.58M	6.79M	-2.31M
Cash Flow
Free Cash Flow	4.20M	2.23M	-1.11M	-3.58M	-4.54M	410.12K
Operating Cash Flow	4.89M	2.64M	-839.72K	-3.40M	-4.01M	910.72K
Investing Cash Flow	-696.42K	-409.30K	-269.36K	-5.86M	-188.14K	-854.01K
Financing Cash Flow	-4.54M	5.86M	403.69K	1.07M	13.75M	-773.59K

Tantalus Systems Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRID, the sentiment is Positive. The current price of 3.19 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 3.10, and above the 200-day MA of 2.38, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 82.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRID.

Tantalus Systems Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPS.A	71 Outperform	1.42B	17.80	24.38%	0.94%	9.53%	20.80%
ELVA	70 Outperform	377.00M	252.78	-17.30%	―	17.08%	0.00%
GRID	47 Neutral	C$165.62M	―	-26.19%	―	24.53%	7.85%
EXRO	47 Neutral	11.46M	-0.03	-1272.39%	―	163.76%	-113.54%
LPS	47 Neutral	26.95M	-7.62	0.00%	―	27.76%	-0.37%
NHHH	35 Underperform	41.30M	-2.51	0.00%	―	0.00%	-8.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tantalus Systems Holding Corporate Events

Tantalus Systems Sees Record Revenue Growth in Q2 2025

Tantalus Systems reported a 22% year-over-year revenue growth to $13.1 million in Q2 2025, driven by both its Connected Devices and Software and Services segments, and the growing momentum of its TRUSense Gateway. The company achieved a 53% gross profit margin, though it recorded a net loss of $903,000, an improvement from the previous year. Tantalus also reported a positive adjusted EBITDA of $510,000 and a liquidity of $19.7 million. The company converted $24.6 million in orders during the quarter, marking a record high, and added four new utilities to its user community. The TRUSense Gateway has been adopted by 45 utilities, enhancing Tantalus’ market position in grid modernization.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Systems to Announce Q2 2025 Financial Results

Tantalus Systems announced it will release its financial results for the second quarter of 2025 on August 6, 2025, followed by a conference call and webcast on August 7, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial health and its strategic positioning within the utility technology sector.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Expands Partnership with EPB for Grid Modernization

Tantalus Systems has announced an expansion of its partnership with EPB in Chattanooga, Tennessee, to deploy 20,000 TRUSense Ethernet Gateways over the next five years. This deployment will enhance EPB’s automated distribution grid and broadband services, integrating with their existing fiber-to-the-home network to provide advanced power quality insights and support for broadband services. The project highlights the scalability and effectiveness of Tantalus’ TRUSense Gateway in addressing the evolving needs of utilities, demonstrating Tantalus’ commitment to customer-driven product development and grid modernization.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.

Tantalus Systems’ AI-Powered Analytics to Modernize Indiana’s Utility Grids

Tantalus Systems announced that the Indiana Municipal Power Agency (IMPA) will deploy its AI-powered TRUGrid analytics across 19 member utilities. This initiative, funded by the Grid Resilience Grant Program, marks Tantalus’ first large-scale AI analytics rollout across multiple utilities, enhancing grid reliability and operational efficiency. The deployment underscores the industry’s shift towards data-driven grid modernization, allowing utilities to make informed decisions and improve infrastructure management.

The most recent analyst rating on (TSE:GRID) stock is a Buy with a C$3.75 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.