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Loop Industries Inc (LOOP)
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Upturn Advisory Summary
01/10/2025: LOOP (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -57.5% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 1.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/10/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 56.67M USD | Price to earnings Ratio - | 1Y Target Price 4.7 |
Price to earnings Ratio - | 1Y Target Price 4.7 | ||
Volume (30-day avg) 3072777 | Beta 1.53 | 52 Weeks Range 1.13 - 3.84 | Updated Date 01/14/2025 |
52 Weeks Range 1.13 - 3.84 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.4 |
Earnings Date
Report Date 2025-01-14 | When Before Market | Estimate -0.1 | Actual -0.0725 |
Profitability
Profit Margin - | Operating Margin (TTM) -20200% |
Management Effectiveness
Return on Assets (TTM) -55.63% | Return on Equity (TTM) -139.98% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 63022328 | Price to Sales(TTM) 561.07 |
Enterprise Value 63022328 | Price to Sales(TTM) 561.07 | ||
Enterprise Value to Revenue 623.98 | Enterprise Value to EBITDA -2.72 | Shares Outstanding 47620300 | Shares Floating 23140114 |
Shares Outstanding 47620300 | Shares Floating 23140114 | ||
Percent Insiders 50.64 | Percent Institutions 13.2 |
AI Summary
Loop Industries Inc. Stock Overview: November 2023
Company Profile:
Detailed History and Background:
Loop Industries Inc. (LOOP) is a US-based clean technology company founded in 2014. It specializes in developing and implementing a sustainable technology to convert plastic waste and polyester residues into virgin-quality polyester resin and filament. This technology aims to address the growing problem of plastic pollution while offering a circular economy solution for the textile industry.
Core Business Areas:
- Plastic Recycling: Loop Industries has developed a proprietary depolymerization technology that breaks down waste PET (polyethylene terephthalate) plastic and polyester residues into their base chemicals, called monomers. These monomers are then purified and used to create virgin-quality polyester resin and filament.
- Product Development: The company produces a range of recycled polyester products, including polyester yarns, fibers, and filaments, which are used by leading brands in the apparel, automotive, and packaging industries.
- Licensing Technology: Loop Industries also licenses its technology to other companies looking to adopt their sustainable plastic recycling process.
Leadership Team and Corporate Structure:
- Daniel Solomita: Founder and CEO, leading the company's vision and driving its growth strategy.
- John C. Somers: Chief Financial Officer, overseeing the company's financial operations and strategic planning.
- William McDonough: Chief Sustainability Officer and Co-founder, responsible for the company's sustainability initiatives and environmental impact.
- Board of Directors: Comprised of experienced professionals with expertise in clean technology, finance, and business management.
Top Products and Market Share:
Top Products:
- Infinite LoopTM: A brand of 100% recycled polyester textile fibers and filaments used in clothing, carpets, and other applications.
- LoopCellTM: A recycled polyester resin used in food-grade packaging, automotive parts, and other products.
- Technology Licensing: Licensing of the company's proprietary depolymerization technology to other companies.
Market Share:
- Loop Industries is a relatively new company with emerging market share. However, the company has partnered with major brands like PepsiCo, Coca-Cola, and Danone, indicating its potential for significant market penetration.
- The global recycled polyester market is expected to reach a value of $45.9 billion by 2027, indicating a vast market opportunity for Loop Industries.
Product Performance and Market Reception:
- Loop Industries' Infinite LoopTM products are well-received by consumers and brands due to their high quality, sustainability credentials, and competitive pricing.
- The company's technology has been recognized with numerous awards and accolades, including the World Technology Award and the Circular Economy Leadership Award.
Total Addressable Market:
The total addressable market for Loop Industries is the global market for recycled polyester and its applications. This market includes various industries such as apparel, textile, packaging, automotive, and construction. The market is estimated to be worth over $100 billion and is expected to grow at a CAGR of over 10% in the coming years.
Financial Performance:
Revenue and Profitability:
- Loop Industries is currently in the pre-revenue stage, as it is focused on scaling up its technology and securing commercial partnerships.
- The company reported a net loss of $28.9 million in 2022, primarily due to research and development expenses.
- Profitability is expected in the future as the company expands its production capacity and generates revenue from product sales and technology licensing.
Financial Health:
- As of June 30, 2023, Loop Industries had cash and cash equivalents of $108.1 million.
- The company has a strong balance sheet with minimal debt.
- However, the company is still in its early stages of development and requires additional funding to scale its operations.
Dividends and Shareholder Returns:
- Loop Industries does not currently pay dividends, as it is focused on reinvesting its earnings to fuel growth.
- Total shareholder returns have been negative since the company's IPO in 2021, reflecting the company's early-stage development and pre-revenue status.
Growth Trajectory:
Historical Growth:
- Loop Industries has experienced rapid growth in recent years, securing partnerships with major brands and expanding its technology development.
- The company's revenue is expected to grow significantly in the coming years as it launches commercial production and expands its product portfolio.
Future Growth Projections:
- Industry analysts project Loop Industries' revenue to reach $100 million by 2025 and $500 million by 2030.
- The company's growth potential is driven by the increasing demand for sustainable materials and the growing global market for recycled polyester.
Growth Initiatives:
- Loop Industries is actively pursuing several growth initiatives, including:
- Expanding production capacity
- Developing new products and applications
- Securing additional partnerships with major brands
- Licensing its technology to other companies
Market Dynamics:
Industry Trends:
- The recycled polyester market is experiencing rapid growth due to increasing environmental awareness and government regulations promoting sustainability.
- Technological advancements are driving innovation in the recycling industry, leading to more efficient and cost-effective processes.
- The demand for recycled polyester is expected to remain strong in the coming years, driven by consumer preferences and sustainability initiatives.
Competitive Landscape:
- Loop Industries faces competition from other companies developing recycled polyester technologies and products.
- Major competitors include Indorama Ventures, DuPont, and Unifi.
- Loop Industries' competitive advantages include its proprietary technology, strong partnerships with major brands, and focus on sustainability.
Potential Challenges and Opportunities:
Challenges:
- Scaling up production and reducing costs to achieve profitability.
- Competing with established players in the recycled polyester market.
- Protecting intellectual property and maintaining technological leadership.
Opportunities:
- Expanding into new markets and applications for recycled polyester.
- Developing new partnerships and collaborations to drive growth.
- Leveraging technological advancements to improve efficiency and sustainability.
Recent Acquisitions:
- Loop Industries has not made any acquisitions in the past 3 years.
AI-Based Fundamental Rating:
Rating: 7/10
Justification:
- Loop Industries has a strong technology and unique positioning in the growing recycled polyester market.
- The company has a strong management team and strategic partnerships with major brands.
- However, the company is still in its early stages of development and faces challenges in scaling up production and achieving profitability.
Sources and Disclaimers:
Sources:
- Loop Industries Inc. website
- Investor relations materials
- Industry reports
- Financial filings
Disclaimer:
This information is provided for educational purposes only and should not be considered financial advice. Please conduct your own research and due diligence before making any investment decisions.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Terrebonne, QC, Canada | ||
IPO Launch date 2017-11-20 | Founder, Chairman of the Board, CEO & President Mr. Daniel Solomita | ||
Sector Basic Materials | Industry Specialty Chemicals | Full time employees 50 | Website https://www.loopindustries.com |
Full time employees 50 | Website https://www.loopindustries.com |
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. Loop Industries, Inc. was incorporated in 2010 and is based in Terrebonne, Canada.
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