Tantalus Systems Holding (GRID) AI Stock Analysis

• Market Cap: C$212.94M
• Dividend Yield: N/A
• Average Volume (3M): 90.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• 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: 69,485
• 30 Day Avg. Volume: 90,753
• PEG Ratio: -0.50
• Price to Book (P/B): 8.93
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 27.82
• 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$6.50
• Price Target Upside: 65.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$4.50 ▲(14.50% Upside)

Tantalus Systems Holding's stock score is primarily influenced by its financial performance challenges, including high leverage and negative profitability. However, strong technical indicators suggest positive market momentum, which partially offsets the financial weaknesses. The valuation remains unattractive due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

The company's ability to maintain a moderate revenue growth rate indicates a stable demand for its smart grid solutions, which supports long-term business expansion and market presence.

Cash Flow Generation

A strong free cash flow to net income ratio suggests effective cash conversion, providing liquidity and financial flexibility to invest in growth opportunities and manage debt.

Gross Profit Margin

A healthy gross profit margin indicates efficient production processes and pricing power, which can sustain profitability and competitive advantage in the long term.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially limiting the company's ability to invest in growth and meet long-term obligations, impacting financial stability.

Profitability Challenges

Ongoing profitability challenges with negative margins indicate difficulty in converting revenue into profit, which could hinder long-term financial health and investor confidence.

Decline in Free Cash Flow

A decline in free cash flow growth suggests potential issues in cash generation, which may affect the company's ability to fund operations and invest in future growth 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 generates revenue primarily through the sale of its smart grid technology solutions, which include hardware, software, and related services. The company's revenue model is based on a combination of direct sales to utility companies, long-term service agreements, and subscription-based offerings for its data analytics platform. Key revenue streams include initial equipment sales, installation fees, maintenance contracts, and ongoing subscription fees for software services. Additionally, Tantalus may benefit from significant partnerships with various utility providers and technology firms, allowing for the expansion of its market reach and the development of integrated solutions that enhance its offerings.

Tantalus Systems Holding Financial Statement Overview

Summary

Tantalus Systems Holding shows moderate revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. The high debt-to-equity ratio and negative return on equity highlight financial instability, though cash flow metrics show some strengths in liquidity.

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: Neutral
• Last Price: 3.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRID, the sentiment is Neutral. The current price of 3.93 is below the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.55, and above the 200-day MA of 2.69, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 43.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	C$2.43B	30.09	25.65%	0.60%	11.19%	19.13%
ELVA	69 Neutral	$291.18M	190.40	8.02%	―	17.08%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRID	57 Neutral	C$212.94M	-92.83	-26.19%	―	24.53%	7.85%
LPS	47 Neutral	C$19.86M	-4.83	-341.84%	―	27.76%	-0.37%
EXRO	40 Neutral	C$11.46M	―	-405.71%	―	163.76%	-113.54%
NHHH	35 Underperform	C$33.04M	-2.32	-67.64%	―	―	-8.37%

Tantalus Systems Holding Corporate Events

Tantalus Systems to Announce Q3 2025 Financial Results

Tantalus Systems announced it will release its third-quarter financial results for 2025 on November 12, followed by a conference call and webcast on November 13. This announcement highlights the company’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting its market positioning by reinforcing investor confidence and interest.

The most recent analyst rating on (TSE:GRID) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Tantalus Systems Holding stock, see the TSE:GRID Stock Forecast page.