Margin Breakdown
| Gross Margin | 0.89 |
Our latest forecast of Loop (USA Stocks:LOOP)
 | By Ellen Johnson | Macroaxis Story |
Loop Industries (NASDAQ: LOOP), a key player in the Commodity Chemicals sector, is currently under Wall Street's microscope. Despite an EPS estimate for the current year reflecting a loss of $0.75, analysts have an overall consensus of 'Buy' for the stock. With an estimated target price of $7, the highest estimate reaches up to $8, suggesting a potential upside. However, with a short ratio of 48.33 and a short percent of 0.0681, it indicates a substantial number of investors are betting against the stock. The company's shares are currently trading near their 50-day moving average of $3.1237, and a bit above the 200-day moving average of $2.9204. The stock has shown a high degree of volatility, with a beta of 1.4956. The stock's 52-week range is $1.845 to $7.23, indicating significant price movement. Loop Industries has a valuation real value of $4.11 and a market value of $3.31, with a naive expected forecast value of $3.32. Despite the current financial position, the company's future growth potential cannot be ignored. However, investors should be aware of the possible downside price of 0.0331. As of July 2023, Loop Industries had 1.6M shares short, indicating a certain level of pessimism in the market. Despite this, the company's accumulation distribution stands at 959.57, showing a level of confidence among some investors. In conclusion, while Loop Industries has some financial hurdles to overcome, the potential for future growth is present. Investors should keep a close eye on this stock and consider the risk factors involved. Loop Industries' Total Assets Per Share are currently relatively stable, showing little variation compared to the previous year. Last year, Loop Industries reported a Total Assets Per Share of 0.000088. As of July 10, 2023, the Quick Ratio is projected to increase to 13.51. However, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to grow to negative $16.9 million.
In this article, we will evaluate Loop Industries as a potential addition to your existing portfolio. We will explore why this could represent a pivotal moment for retail investors in Loop Industries.
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Reviewed by Raphi Shpitalnik
Loop Industries is currently undervalued at $4.11 per share, with modest growth projections anticipated. Approximately 59.0% of Loop Industries' outstanding shares are owned by corporate insiders. The insider ownership of Loop Industries pertains to the quantity of equity owned by the company's officers, directors, and relatives of the leadership team, as well as anyone with access to confidential information prior to its public release. For our latest analysis of Loop, including its current ownership diagnostics, please visit the following links: Loop Industries insider shares and View Ownership Allocation Details.
Additional evaluation
Loop Industries (NASDAQ: LOOP) is currently facing financial challenges as evidenced by its negative earnings per share (EPS) estimates for the current year and next year, which stand at a loss of 0.75 and 0.35 respectively. Despite this, the company has shown resilience with a 52-week high of 7.23, indicating potential for future growth. However, investors should be aware of the company's high coefficient of variation at 2.5K and a standard deviation of 4.75, suggesting a high level of risk. With Wall Street's target price set at 6.77, there's potential upside, but it's crucial for investors to weigh these opportunities against the risks.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Loop Industries. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Loop Industries
Watch out for price decline
Please consider monitoring Loop Industries on a daily basis if you are holding a position in it. Loop Industries is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Loop Industries stock to be traded above the $1 level to remain listed. If Loop Industries stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
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
The modest gains experienced by current holders of Loop Industries may encourage retail investors to take a closer look at the firm as it is trading at a share price of 3.31 on 19,022 in trading volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.55. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Loop Industries partners.
Loop Industries (NASDAQ: LOOP), a player in the Specialty Chemicals industry, is currently trading at a Price to Earnings ratio of 479.50X, with a Price to Sales ratio of 787.94X. Despite the high valuations, the company's Price to Earnings To Growth ratio stands at a more reasonable 0.89X. However, the company's financial health raises some concerns. Loop Industries reported a net asset value of $40.56 million, with current liabilities at $19.89 million.The company's total debt stands at a relatively low $3.3 million, indicating a manageable debt burden. On the downside, Loop Industries has been posting losses, with an EPS estimate for the current year at a loss of $0.75 and an estimated loss of $0.35 for the next year. The company's return on assets is also negative at -0.48. The company's shares are heavily shorted, with 1.6 million shares short, representing 6.81% of the company's float. Despite these challenges, Loop Industries has a working capital of $32.84 million, which could fuel its future growth. The company's target price is $6.77, suggesting a potential upside of 8.72%. However, with a probability of bankruptcy at 1.00%, investors should approach Loop Industries with caution. The company's financial position and performance will need to improve significantly to justify its current valuation and deliver on its growth potential. .
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