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Sharc International Systems Inc (SHRC) AI Stock Analysis

TSE:SHRC

Sharc International Systems Inc

(CNQX:SHRC)

Select Model
Rating:45Neutral
Price Target:CAD 0.08â–¼(-2.35% Downside)
Action:reiterated
Date:10/24/26

The overall score is weighed down primarily by very weak financial performance, including persistent losses, negative equity, and ongoing cash consumption. Technical indicators are also unfavorable because the price remains below key moving averages and MACD is negative. The negative P/E provides no valuation support.

Positive Factors
Energy-efficiency business modelSHARC’s core offering targets energy reduction through wastewater heat recovery, giving its systems a clear efficiency purpose for buildings and district-scale applications. This creates a durable commercial proposition where customers seek lower energy consumption and more sustainable infrastructure.
Negative Factors
Declining revenueA roughly 23% TTM revenue decline signals weakening commercial throughput and reduces the scale available to absorb operating costs. Persistent top-line contraction would limit investment capacity, make profitability harder to reach, and increase dependence on new project wins.

Sharc International Systems Inc (SHRC) vs. iShares MSCI Canada ETF (EWC)

-50%-25%0%25%50%75%100%TSE:SHRC0.00%EWC+23.59%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
CAD 14.04M
Dividend Yield
―
Average Volume (3M)
81.63K
Price to Earnings (P/E)
-3.9
Beta (1Y)
0.41
Revenue Growth
-22.75%
EPS Growth
5.86%
Country
Canada
Employees
15
Sector
Industrials
Sector Strength
63
Industry
Industrial - Pollution & Treatment Controls

Sharc International Systems Inc Business Overview & Revenue Model

Company Description

Sharc International Systems Inc. delivers specialized wastewater heat exchange products and services to commercial, industrial, public utility, and residential development initiatives both within Canada and internationally. Its core offerings include...

How the Company Makes Money

SHARC makes money primarily by commercializing wastewater heat recovery solutions. Key revenue streams include: (1) Product/equipment sales: revenue from selling its wastewater heat exchanger/heat recovery units and associated mechanical/electrical/c...

Sharc International Systems Inc Financial Statement Overview

Summary

Financial quality is very weak: the income statement, balance sheet, and cash flow scores are 18, 15, and 22, respectively. Persistent losses, negative equity, and recurring negative operating and free cash flow outweigh the modest improvement in cash burn.

Income Statement

18Very Negative

Balance Sheet

15Very Negative

Cash Flow

22Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.94M3.04M2.17M1.59M1.94M2.70M
Gross Profit-1.62M-1.42M914.22K-2.21M560.46K991.08K
EBITDA-2.96M-2.87M-3.47M-3.50M-3.80M-1.81M
Net Income-3.57M-3.48M-3.72M-3.90M-4.82M-3.04M
Balance Sheet
Total Assets3.03M2.10M3.91M3.46M3.15M5.97M
Cash, Cash Equivalents and Short-Term Investments1.40M262.51K818.26K1.24M1.07M3.15M
Total Debt5.49M3.41M2.16M141.15K3.99M4.99M
Total Liabilities7.47M4.99M3.89M754.65K5.10M5.51M
Stockholders Equity-4.44M-2.89M23.41K2.71M-1.95M457.02K
Cash Flow
Free Cash Flow-1.82M-1.91M-2.14M-3.47M-1.68M-2.70M
Operating Cash Flow-1.81M-1.90M-2.12M-3.46M-1.56M-2.59M
Investing Cash Flow-6,26945.55K-129.32K-13.65K-120.85K-133.68K
Financing Cash Flow3.12M1.30M1.83M3.65M-401.13K2.78M

Sharc International Systems Inc Technical Analysis

Technical Analysis SentimentNegative
Last Price0.09

Price Trends

50DMA0.10Negative
100DMA0.12Negative
200DMA0.11Negative

Market Momentum

MACD-0.00Negative
RSI43.89Neutral
STOCH22.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SHRC, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SHRC.

Sharc International Systems Inc Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

TSE:SHRC against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:BRMTSE:BRM80OutperformCAD 59.52M9.4941.45%―32.16%94.55%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
TSE:TMGTSE:TMG60NeutralCAD 26.50M32.9816.53%―16.89%―
TSE:QSTTSE:QST48NeutralCAD 7.08M-2.31-16.34%―-74.07%-251.51%
TSE:SHRCTSE:SHRC45NeutralCAD 14.04M-3.92109.61%―-22.75%5.86%
TSE:GRNTSE:GRN44NeutralCAD 27.17M-6.25-18.95%―5.01%-3122.22%
TSE:WATRTSE:WATR43NeutralCAD 2.47M-12.505.26%―159.71%97.18%

* Industrials Sector Average

Performance Comparison

-50%0%50%100%TSE:SHRCTSE:BRMTSE:WATRTSE:QSTTSE:TMGTSE:GRNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
TSE:SHRC and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:SHRCSharc International Systems Inc.0.090.016.25%
TSE:BRMBiorem Inc3.651.6279.80%
TSE:WATRCurrent Water Technologies Inc0.01-0.01-50.00%
TSE:QSTQuestor Technology0.26-0.20-43.33%
TSE:TMGThermal Energy International0.150.0324.00%
TSE:GRNGreenlane Renewables0.17-0.08-32.00%

Sharc International Systems Inc Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing

SHARC Energy Builds Record Backlog as Losses Widen in Q3 2026

Neutral
Oct 30, 2026

SHARC Energy reported third-quarter 2026 revenue of $0.83 million, flat year over year, alongside a net loss of $0.87 million and softer gross margins as project mix and timing continued to drive volatility. For the first nine months of 2026, revenue...

Business Operations and StrategyFinancial Disclosures

SHARC Energy Wins Record $5 Million Surrey District Heat Recovery Contract

Positive
Oct 22, 2026

SHARC Energy has secured a record purchase order worth more than $5 million from the City of Surrey for a District Energy Sewer Heat Recovery Project, roughly double the size of its previous largest contract. The company will supply three SHARC 880 W...

Business Operations and StrategyExecutive/Board Changes

SHARC Energy Issues New Equity Incentive Grants to Align Staff with Shareholders

Positive
Oct 5, 2026

SHARC Energy has approved new equity incentive grants, issuing 9,590,000 stock options to directors, officers and other participants, exercisable at $0.09 per share and vesting immediately with expiration in October 2029. The company also granted 1,8...

Executive/Board ChangesShareholder Meetings

SHARC Energy Shareholders Approve Board and Auditor at 2026 AGM

Positive
Sep 23, 2026

SHARC Energy reported the results of its 2026 annual general meeting, where 21,347,237 common shares, representing 12.93% of outstanding shares, were voted and quorum was confirmed. Shareholders elected Shane Dungey, Michael Albertson, Felix (Fred) A...

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing

SHARC Energy Q2 Results Highlight Revenue Volatility but Strengthening Pipeline

Neutral
Aug 25, 2026

SHARC Energy reported Q2 2026 revenue of $0.27 million, a 68% decline from the prior year, and widened Adjusted EBITDA losses as project timing and milestone-based recognition continue to drive quarterly volatility. However, liquidity improved with $...

Business Operations and StrategyExecutive/Board Changes

SHARC Energy Overhauls Executive Team to Drive Next Growth Phase

Positive
Aug 5, 2026

SHARC Energy has launched a broad executive leadership transition as part of its strategic evolution, moving founder Lynn Mueller out of day-to-day duties while planning to retain him as a consultant focused on business development and growth initiat...

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.

Date of analysis: Oct 24, 2026