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Legend Power Systems (LPS) AI Stock Analysis
Legend Power Systems
(TSXV:LPS)
The overall score is very low, driven primarily by severe financial distress including negative margins, cash burn, and a near-zero equity base. Technical trends confirm persistent selling pressure with the stock trading below all major moving averages. The negative P/E ratio further underscores the lack of fundamental value.
Legend Power Systems (LPS) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 15.64M
- Dividend Yield
- ―
- Average Volume (3M)
- 161.57K
- Price to Earnings (P/E)
- -7.5
- Beta (1Y)
- 2.18
- Revenue Growth
- 0.60%
- EPS Growth
- 50.19%
- Country
- Canada
- Employees
- 25
- Sector
- General
- Sector Strength
- 55
- Industry
- Electrical Equipment & Parts
Legend Power Systems Business Overview & Revenue Model
Company Description
Legend Power Systems Inc., along with its affiliates, operates as an energy efficiency provider in Canada and the United States, specializing in electrical conservation. The company's flagship offering is SmartGATE, a patented technology it manufactu...
How the Company Makes Money
LPS makes money primarily by selling and deploying its SmartGATE power management systems to commercial and institutional building customers, recognizing revenue from the sale of hardware/equipment and the associated installation/commissioning work w...
Legend Power Systems Earnings Call Summary
The earnings call reflects a strong overall performance with record-breaking sales bookings, improved margins, and significant government contracts. However, challenges remain in the timely closure of deals and managing the complexity of the sales process. The company is on a positive trajectory with a substantial sales pipeline and increased production capacity.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
During the Q3 2024 earnings call, Legend Power Systems provided insightful guidance, highlighting several key metrics and achievements. Notably, the company achieved a revenue of $1.04 million for the quarter, a significant increase from $470,000 in the same period last year. The gross margin improved to 50% from 22% in Q3 of fiscal 2023, showcasing effective cost management and factory utilization. Additionally, the company's backlog grew, with deferred revenue reaching $524,000 compared to $210,000 at the end of the previous fiscal year. Legend Power Systems reported a cash reserve of $806,000, no debt, and $1.5 million in working capital. The sales team secured major deals, including record-breaking bookings of approximately $3 million, surpassing prior records set in Q2. The company is optimistic about its future, with a robust pipeline of 17 deals worth over $7 million and significant growth potential, including projects with the City of New York and the U.S. Department of Defense. The management expressed confidence in maintaining strong margins and cash flow, driven by strategic initiatives and successful customer engagements.
Legend Power Systems Financial Statement Overview
Summary
Financial health is critically weak. The company is deeply unprofitable with negative gross margins, persistent net losses, and negative operating cash flow. The balance sheet shows near-total equity erosion and rising leverage, indicating a high risk of financial distress.
Income Statement
18Very NegativeBalance Sheet
22NegativeCash Flow
15Very Negative| Breakdown | TTM | Dec 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71M | 1.68M | 1.87M | 1.11M | 2.12M | 2.71M |
| Gross Profit | -729.14K | -2.40M | 702.85K | 194.18K | 204.35K | 571.25K |
| EBITDA | -1.75M | -3.09M | -3.11M | -3.91M | -5.14M | -3.61M |
| Net Income | -1.97M | -3.29M | -3.30M | -4.18M | -5.35M | -3.84M |
Balance Sheet | ||||||
| Total Assets | 2.03M | 2.01M | 2.80M | 5.23M | 6.30M | 11.80M |
| Cash, Cash Equivalents and Short-Term Investments | 743.58K | 52.75K | 236.72K | 2.51M | 3.09M | 9.29M |
| Total Debt | 134.22K | 212.12K | 324.83K | 425.99K | 189.16K | 304.10K |
| Total Liabilities | 1.93M | 2.17M | 1.84M | 1.23M | 953.16K | 1.71M |
| Stockholders Equity | 103.64K | -163.04K | 960.53K | 3.99M | 5.35M | 10.09M |
Cash Flow | ||||||
| Free Cash Flow | -846.85K | -1.87M | -2.10M | -2.89M | -6.14M | -2.60M |
| Operating Cash Flow | -846.86K | -1.87M | -2.09M | -2.89M | -6.07M | -2.57M |
| Investing Cash Flow | 0 | -2,294 | -7,837 | 0 | -62.81K | -28.34K |
| Financing Cash Flow | 1.38M | 1.70M | -170.81K | 2.32M | -160.53K | 9.56M |
Legend Power Systems Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPS, the sentiment is Negative. The current price of 0.10 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.16, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.32 is Neutral, neither overbought nor oversold. The STOCH value of -1.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LPS.
Legend Power Systems Peers Comparison
Overall Rating
TSE:ELVA52Neutral
TSE:GRID46Neutral
TSE:EGT41Neutral- TSE:LPS38Underperform
TSE:BES37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:ELVA | 52Neutral | CAD 365.99M | 53.34 | 7.92% | ― | 29.42% | 247.98% |
| TSE:GRID | 46Neutral | CAD 239.26M | -215.99 | -5.42% | ― | 20.11% | 55.61% |
| TSE:EGT | 41Neutral | CAD 3.98M | -1.04 | 9.87% | ― | ― | ― |
| TSE:LPS | 38Underperform | CAD 15.64M | -7.46 | 6067.59% | ― | 0.60% | 50.19% |
| TSE:BES | 37Underperform | CAD 2.93M | -1.24 | 107.32% | ― | -18.75% | 11.40% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:LPS | Legend Power Systems | 0.10 | -0.05 | -33.33% | |
| TSE:ELVA | Electrovaya Inc. | 7.38 | -0.79 | -9.67% | |
| TSE:EGT | Eguana Technologies | 0.09 | -0.05 | -37.14% | |
| TSE:BES | Braille Energy Systems | 0.03 | -0.06 | -68.75% | |
| TSE:ABND | Zinc8 Energy Solutions, Inc. | 0.15 | 0.03 | 25.00% | |
| TSE:GRID | Tantalus Systems Holding Inc | 4.17 | 0.03 | 0.72% |
Legend Power Systems Corporate Events
Legend Power Narrows Losses as U.S. Federal Traction Builds for SmartGATE
PositiveLegend Power Systems reported a narrower net loss and improved adjusted EBITDA in its third quarter of fiscal 2026, despite a 44% year-over-year drop in revenue to $216,221 as fewer SmartGATE units were fulfilled. Cost-cutting measures reduced operat...
Legend Power Wins GSA Schedule, Opening SmartGATE to U.S. Public-Sector Buyers
PositiveLegend Power Systems has secured a U.S. General Services Administration Multiple Award Schedule contract, making its SmartGATE Gen 3 Active Power Management platform available to federal buyers under a facilities management category with pre-negotiat...
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.
Date of analysis: Oct 29, 2026