NasdaqGM:LOOP

Stock Analysis Report

Executive Summary

Loop Industries, Inc. focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks.

Snowflake

Fundamentals

Moderate growth potential with imperfect balance sheet.

Risks

  • Loop Industries has significant price volatility in the past 3 months.
  • Loop Industries is covered by less than 3 analysts.

Share Price & News

How has Loop Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.7%

NasdaqGM:LOOP

2.1%

US Chemicals

2.9%

US Market


1 Year Return

57.5%

NasdaqGM:LOOP

-15.1%

US Chemicals

0.2%

US Market

LOOP outperformed the Chemicals industry which returned -16.1% over the past year.

LOOP outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

LOOPIndustryMarket
7 Day7.7%2.1%2.9%
30 Day16.7%-4.8%-2.3%
90 Day90.5%-0.4%3.1%
1 Year57.5%57.5%-1.7%-15.1%2.4%0.2%
3 Year250.0%250.0%34.8%10.0%41.7%32.4%
5 Yearn/a31.1%2.4%55.1%37.9%

Price Volatility Vs. Market

How volatile is Loop Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Loop Industries undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Loop Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Loop Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Loop Industries is loss making, we can't compare its value to the US Chemicals industry average.

Loop Industries is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Loop Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

Loop Industries is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Loop Industries expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Loop Industries is high growth as no revenue estimate data is available.

Loop Industries's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Loop Industries's revenue growth to the United States of America market average as no estimate data is available.

Loop Industries's earnings growth is expected to exceed the United States of America market average.

Loop Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Loop Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Loop Industries performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Loop Industries does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Loop Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Loop Industries's 1-year growth to the US Chemicals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Loop Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Loop Industries has efficiently used its assets last year compared to the US Chemicals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Loop Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Loop Industries's financial position?


Financial Position Analysis

Loop Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Loop Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Loop Industries's level of debt (67.7%) compared to net worth is high (greater than 40%).

Unable to establish if Loop Industries's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Loop Industries has less than a year of cash runway based on current free cash flow.

Loop Industries has less than a year of cash runway if free cash flow continues to grow at historical rates of 47.1% each year.


Next Steps

Dividend

What is Loop Industries's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Loop Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Loop Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Loop Industries has not reported any payouts.

Unable to verify if Loop Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Loop Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Loop Industries's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Daniel Solomita (43yo)

4.2yrs

Tenure

US$812,961

Compensation

Mr. Daniel Solomita is Founder and President of Loop Industries, Inc. and has been its Chief Executive Officer and Director since June 29, 2015. Mr. Solomita has been the Chairman and President of Loop Ind ...


CEO Compensation Analysis

Daniel's remuneration is lower than average for companies of similar size in United States of America.

Daniel's compensation has increased whilst company is loss making.


Management Age and Tenure

1.8yrs

Average Tenure

The average tenure for the Loop Industries management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Loop Industries board of directors is less than 3 years, this suggests a new board.


Insider Trading

Loop Industries individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$60,00016 Jul 19
Sidney Horn
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$12.00

Ownership Breakdown


Management Team

  • Nelson Gentiletti (57yo)

    COO, CFO

    • Tenure: 0.6yrs
    • Compensation: US$2.47m
  • Daniel Solomita (43yo)

    Founder

    • Tenure: 4.2yrs
    • Compensation: US$812.96k
  • Giovanni Catino

    Head of Procurement & Business Development

    • Tenure: 1.8yrs

Board Members

  • Laurence Sellyn (69yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$256.60k
  • Sidney Horn (69yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$81.00k
  • Andrew Lapham

    Director

    • Tenure: 0.2yrs
  • Daniel Solomita (43yo)

    Founder

    • Tenure: 4.2yrs
    • Compensation: US$812.96k
  • Jay Stubina (58yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$150.00k

Company Information

Loop Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loop Industries, Inc.
  • Ticker: LOOP
  • Exchange: NasdaqGM
  • Founded: 2014
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$546.175m
  • Shares outstanding: 39.01m
  • Website: https://www.loopindustries.com

Number of Employees


Location

  • Loop Industries, Inc.
  • 480 Fernand Poitras Street
  • Terrebonne
  • Quebec
  • J6Y 1Y4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOOPNasdaqGM (Nasdaq Global Market)YesNew Common StockUSUSDJun 2015

Biography

Loop Industries, Inc. focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It re-polymerized monomers into virgin-quality PET plastic fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:33
End of Day Share Price2019/08/21 00:00
Earnings2019/05/31
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.