Loop Industries, trading on NASDAQ, is a player in the chemicals sector with a focus on innovative recycling technologies. As of the latest update, the company carries a market capitalization of $88.1 million. Despite its promising technology, Loop Industries faces significant financial challenges, highlighted by a net income loss of $21.1 million. With a probability of bankruptcy at 45.57%, potential investors should weigh the risks carefully. The stock's beta of 1.482 suggests higher volatility compared to the broader market, which could mean more pronounced price swings. As November unfolds, investors will need to consider whether Loop's innovative edge can outweigh its financial hurdles in their portfolio strategy. Northern Technologies seems to be bouncing back quickly, with its stock price rising by 1.69% today, compared to Loop Industries' impressive 5.11% jump. Given the cautious sentiment among traders towards the chemical sector, it's worth taking a closer look at Loop Industries to see how it measures up against Northern Technologies and similar companies. Let's explore some of the competitive factors that differentiate Loop from Northern and others in the industry.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Loop Industries. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Loop Industries, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Loop Industries's Liquidity
Loop Industries
financial leverage refers to using borrowed capital as a funding source to finance Loop Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Loop Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Loop Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Loop Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Loop Industries's total debt and its cash.
Loop Industries Gross Profit
Loop Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Loop Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Loop Industries Gross Profit growth over the last 10 years. Please check Loop Industries'
gross profit and other
fundamental indicators for more details.
A Deeper look at Loop
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Loop Industries revenue. Based on the latest financial disclosure, Loop Industries reported 153
K of revenue.
This is 100.0% lower than that of the Chemicals sector and 100.0% lower than that of the
Materials industry. The revenue for all United States stocks is 100.0% higher than that of Loop Industries. As for Northern Technologies we see revenue of 86.36
M, which is 98.06% lower than that of the Materials
| LOOP | 153,000 | 0.003373 |
| Sector | 4.45 Billion | 98.09 |
| NTIC | 86.36 Million | 1.9 |
"High risk, high reward" is a phrase that often rings true in the stock market, and Loop Industries (LOOP) might just fit that bill this November. With a significant probability of bankruptcy at 45.57%, investing in LOOP is not for the faint-hearted. However, the stock's potential upside of 11.72% could be enticing for those willing to take on the risk. Despite a challenging financial landscape, including a net income loss of 21.1 million and a quarterly revenue growth decline of 78%, LOOP's innovative approach in the chemicals sector might offer a speculative opportunity for bold investors..
Our take on today Loop Industries spike
Loop Industries saw a significant jump today, but investors should proceed with caution. The Information Ratio is currently at -0.02, indicating that the stock's recent returns don't adequately compensate for the risks. This ratio, which assesses return efficiency relative to volatility, hints at potential instability. Given this, the stock price might decline again. Investors should monitor Loop Industries closely, as the current surge may not hold without stronger fundamentals. The stock is experiencing higher-than-average volatility, which can help investors time their trades. By using volatility indicators, traders can assess Loop Industries' risk compared to market fluctuations in both rising and falling markets. Bear markets, in particular, can exacerbate volatility, prompting investors to adjust their portfolios as prices drop.
Our Takeaway on Loop Industries Investment
While some other entities under the specialty chemicals industry are still a bit expensive, Loop Industries may offer a potential longer-term growth to retail investors. On the whole, as of the 13th of October 2024, our research shows that Loop Industries is a rather dangerous investment opportunity with a
below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be
undervalued. However, our overall 90 days buy-hold-sell advice on the enterprise is
Strong Sell.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Loop Industries. Please refer to our
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