Sharc International Systems Inc (SHRC) AI Stock Analysis

• Market Cap: C$15.98M
• Dividend Yield: N/A
• Average Volume (3M): 17.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -13.40%
• EPS Growth: 47.59%
• Country: CA
• Employees: 14
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.02
• Shares Outstanding: 159,762,420
• 10 Day Avg. Volume: 38,534
• 30 Day Avg. Volume: 17,617
• PEG Ratio: -1.56
• Price to Book (P/B): 12.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.41
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sharc International Systems Inc's overall stock score is driven by its significant financial challenges, with persistent negative margins and high leverage being key concerns. Technical analysis indicates some short-term positive momentum, but long-term sustainability remains questionable. The negative P/E ratio reflects ongoing profitability issues, which, combined with the lack of earnings call and corporate events data, results in a cautious outlook.

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc. provides wastewater heat exchange products and services for commercial, industrial, public utilities, and residential development projects in Canada and internationally. It offers SHARC, a wastewater energy transfer system for industrial filtration, heating, and cooling applications; and PIRANHA, a wastewater heat recovery and cooling system that recovers energy from wastewater and produces hot water. The company was formerly known as International Wastewater Systems Inc. and changed its name to Sharc International Systems Inc. in September 2017. Sharc International Systems Inc. was founded in 2010 and is headquartered in Port Coquitlam, Canada.

How the Company Makes Money

Sharc International Systems Inc makes money primarily through the sale and installation of its wastewater energy recovery systems, the SHARC and PIRANHA. These systems are designed to significantly reduce energy costs for buildings by harnessing the thermal energy contained in wastewater. The company's revenue model includes direct sales to building owners and developers, as well as partnerships with utilities and energy service companies that promote or mandate the use of sustainable energy solutions. Additionally, Sharc may engage in licensing agreements or collaborations with entities that facilitate the broader adoption of its technology. Key revenue streams are thus derived from equipment sales, installation services, and potential ongoing maintenance contracts. The company's earnings are further supported by growing environmental regulations and incentives that encourage energy efficiency and reduced carbon emissions.

Sharc International Systems Inc Financial Statement Overview

Summary

Sharc International Systems Inc exhibits some revenue growth and slight improvements in equity, but the company faces significant financial difficulties. Persistent negative margins, high leverage, and cash flow challenges underscore the need for strategic adjustments to achieve financial stability and profitability.

Income Statement

The company has shown some growth in revenue with a 38.3% increase from the previous year. However, the net profit margin and gross profit margin remain negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, pointing to operational inefficiencies and significant financial losses.

Balance Sheet

The balance sheet reveals a high level of debt compared to equity, with a debt-to-equity ratio that indicates potential financial instability. Although the company has increased its equity from negative to positive territory, the equity ratio remains modest at 28.7%, reflecting a low proportion of assets financed by equity.

Cash Flow

The cash flow statement shows a negative operating cash flow, but there has been a significant improvement in free cash flow compared to prior periods. However, the free cash flow to net income ratio remains unfavorable, indicating cash flow challenges relative to reported losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.20M	1.59M	1.94M	2.70M	630.57K	143.58K
	Gross Profit
79.65K	656.27K	560.46K	991.08K	273.09K	76.91K
	EBIT
-2.20M	-3.30M	-3.84M	-1.97M	-2.51M	-2.52M
	EBITDA
-2.83M	-3.50M	-3.80M	-1.81M	-1.95M	-2.57M
	Net Income Common Stockholders
-2.92M	-3.90M	-4.82M	-3.04M	-2.89M	-3.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.90M	1.24M	1.07M	3.15M	3.10M	109.51K
	Total Assets
5.88M	3.46M	3.15M	5.97M	4.37M	1.07M
	Total Debt
4.46M	141.15K	3.99M	4.99M	5.61M	5.81M
	Net Debt
2.56M	-1.10M	2.92M	1.84M	2.50M	5.70M
	Total Liabilities
8.17M	754.65K	5.10M	5.51M	5.81M	7.02M
	Stockholders Equity
-2.29M	2.71M	-1.95M	457.02K	-1.44M	-5.95M
Cash Flow		Free Cash Flow
-1.94M	-3.47M	-1.68M	-2.70M	-2.65M	-2.18M
	Operating Cash Flow
-1.93M	-3.46M	-1.56M	-2.59M	-2.63M	-2.15M
	Investing Cash Flow
-8.74K	-13.65K	-120.85K	-133.68K	-26.83K	-2.94M
	Financing Cash Flow
1.76M	3.65M	-401.13K	2.78M	5.65M	3.30M

Sharc International Systems Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHRC, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SHRC.

Sharc International Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
TMG	63 Neutral	C$18.18M	116.67	4.63%	―	14.78%	-90.82%
GRN	58 Neutral	C$14.90M	―	-5.60%	―	-10.37%	95.22%
WATR	47 Neutral	C$4.58M	―	-143.77%	―	-49.88%	-266.67%
SHRC	43 Neutral	C$15.98M	―	-272.36%	―	-13.40%	47.59%
DST	43 Neutral	C$9.95M	―	23.34%	―	-41.98%	-123.77%
QST	42 Neutral	C$8.26M	―	-14.23%	―	-37.13%	32.21%

Sharc International Systems Inc Corporate Events

SHARC Energy Appoints New CEO to Lead Expansion

SHARC Energy has appointed Michael Albertson as its new CEO, President, and Director, succeeding Lynn Mueller, who will remain as Executive Chairman. Albertson, known for his expertise in renewable thermal energy, aims to expand SHARC Energy’s Wastewater Energy Transfer business into new customer sectors such as universities and water utilities. This leadership change positions SHARC Energy to continue its growth and innovation in sustainable energy solutions.

SHARC Energy Posts Strong Q3 2024 Results

SHARC International Systems Inc. reported a revenue increase of 44% for Q3 2024 compared to the same period last year, alongside a significant year-to-date revenue growth of 35%. The company’s sales pipeline is maturing, providing stability, while recent strategic appointments and financing aim to support future growth.

SHARC Energy Welcomes Fred Andriano to Board

SHARC International Systems Inc. has appointed Fred Andriano, a seasoned expert in finance and renewable energy, to its Board of Directors. With a strong history of driving growth through strategic acquisitions and financial leadership, Andriano is expected to play a key role in advancing SHARC Energy’s sustainable energy solutions. This move aligns with the company’s mission to innovate in energy-efficient technologies and expand their market presence.