📊 LOOP Key Takeaways
Is Loop Industries, Inc. (LOOP) a Good Investment?
Loop Industries is in terminal financial distress with negative stockholders' equity of -$9.6M, indicating technical insolvency. The company generates only $514K in annual revenue while burning $10.1M operationally, with approximately 2-3 months of cash runway remaining. The business model is fundamentally broken with a -2392.8% operating margin and no viable path to profitability.
Fundamentals are extremely weak: revenue is de minimis while net losses (-$9.6M) and negative stockholders’ equity (-$7.3M) signal high solvency and going‑concern risk. Despite an adequate current ratio and low debt with high interest coverage, operating cash burn (-$7.37M) remains heavy and free cash flow is deeply negative. Until the company demonstrates sustained revenue scale and positive gross margin, the risk profile outweighs potential upside.
Loop Industries, Inc. Key Strengths (LOOP)
- Net loss improved 18.3% YoY, suggesting potential cost-cutting measures
- Current ratio of 1.31x indicates short-term liquidity not immediately critical
- Company retains $2.4M in cash and has minimal CapEx ($0), preserving cash for operations
- Adequate near-term liquidity (current ratio 1.69x; quick 1.67x)
- Low long-term debt with strong interest coverage (24.0x)
- Capex-light period, preserving cash relative to investment needs
LOOP Stock Risks: Loop Industries, Inc. Investment Risks
- Negative stockholders' equity of -$9.6M represents technical insolvency and balance sheet insolvency
- Operating cash burn of $10.1M annually against $514K revenue is catastrophically unsustainable with ~2-3 months runway
- Liabilities of $18.1M exceed assets of $8.6M; $3.1M long-term debt is unmanageable with current asset base
- Operating margin of -2392.8% indicates fundamental business model failure with no profitability trajectory
- Zero revenue growth YoY signals complete stagnation in business development and market acceptance
- Negative stockholders’ equity and very weak ROA (-85%) indicate solvency stress
- Sustained negative operating and free cash flow with limited cash ($5.2M vs -$7.37M OCF)
- Minimal revenue and no reported gross margin create high execution risk to scale
Key Metrics to Watch
- Cash balance depletion rate and revised runway estimates
- Operating cash flow acceleration/deceleration and expense reduction efforts
- Revenue generation and gross margin achievement to determine business viability
- Debt covenant compliance and refinancing announcements or restructuring proceedings
- Revenue growth trajectory
- Operating cash flow (burn rate)
Loop Industries, Inc. (LOOP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Loop Industries, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LOOP Profit Margin, ROE & Profitability Analysis
LOOP vs Materials Sector: How Loop Industries, Inc. Compares
How Loop Industries, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Loop Industries, Inc. Stock Overvalued? LOOP Valuation Analysis 2026
Based on fundamental analysis, Loop Industries, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Loop Industries, Inc. Balance Sheet: LOOP Debt, Cash & Liquidity
LOOP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Loop Industries, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.44 indicates the company is currently unprofitable.
LOOP Revenue Growth, EPS Growth & YoY Performance
LOOP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | N/A | -$3.2M | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Loop Industries, Inc. Dividends, Buybacks & Capital Allocation
LOOP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Loop Industries, Inc. (CIK: 0001504678)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LOOP
What is the AI rating for LOOP?
Loop Industries, Inc. (LOOP) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LOOP's key strengths?
Claude: Net loss improved 18.3% YoY, suggesting potential cost-cutting measures. Current ratio of 1.31x indicates short-term liquidity not immediately critical. ChatGPT: Adequate near-term liquidity (current ratio 1.69x; quick 1.67x). Low long-term debt with strong interest coverage (24.0x).
What are the risks of investing in LOOP?
Claude: Negative stockholders' equity of -$9.6M represents technical insolvency and balance sheet insolvency. Operating cash burn of $10.1M annually against $514K revenue is catastrophically unsustainable with ~2-3 months runway. ChatGPT: Negative stockholders’ equity and very weak ROA (-85%) indicate solvency stress. Sustained negative operating and free cash flow with limited cash ($5.2M vs -$7.37M OCF).
What is LOOP's revenue and growth?
Loop Industries, Inc. reported revenue of $514.0K.
Does LOOP pay dividends?
Loop Industries, Inc. pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find LOOP SEC filings?
Official SEC filings for Loop Industries, Inc. (CIK: 0001504678) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LOOP's EPS?
Loop Industries, Inc. has a diluted EPS of $-0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LOOP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Loop Industries, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LOOP stock overvalued or undervalued?
Valuation metrics for LOOP: ROE of N/A (sector avg: 14%), net margin of -2,392.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LOOP's AI grade for 2026?
Our dual AI analysis gives Loop Industries, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LOOP's free cash flow?
Loop Industries, Inc.'s operating cash flow is $-10.1M, with capital expenditures of $0.0. FCF margin is -1,966.9%.
How does LOOP compare to other Materials stocks?
Vs Materials sector averages: Net margin -2,392.8% (avg: 10%), ROE N/A (avg: 14%), current ratio 1.31 (avg: 1.6).