Legend Power Systems (LPS) AI Stock Analysis

• Market Cap: C$19.15M
• Dividend Yield: N/A
• Average Volume (3M): 21.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 177.07%
• EPS Growth: 29.71%
• Country: CA
• Employees: 25
• Sector: Utilities
• Sector Strength: 92
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 141,851,600
• 10 Day Avg. Volume: 27,229
• 30 Day Avg. Volume: 21,576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.24
• Price to Cash Flow (P/CF): -9.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Legend Power Systems faces significant financial and technical challenges, reflected in its low financial performance and technical analysis scores. However, recent corporate events, such as partnerships and revenue growth, provide a glimmer of hope for potential improvement. The stock's valuation remains unattractive due to ongoing losses. Overall, the company's current financial and market position suggests caution, but strategic initiatives could offer future upside.

Legend Power Systems Business Overview & Revenue Model

Company Description

Legend Power Systems (LPS) is a leader in energy management solutions, specializing in the development and supply of innovative technologies designed to improve the efficiency and reliability of electrical systems in commercial, institutional, and industrial buildings. The company operates primarily in the energy sector, offering products and services that optimize power quality and reduce energy consumption, thereby enhancing operational performance and sustainability for its clients.

How the Company Makes Money

Legend Power Systems generates revenue through the sale and installation of its proprietary energy management solutions, which include hardware and software components designed to optimize electrical systems. The company earns income from both one-time sales of its products and ongoing service contracts, which may include maintenance, monitoring, and performance optimization services. Additionally, LPS may engage in partnerships with energy service companies and utility providers to expand its market reach and offer integrated solutions that contribute to its revenue streams.

Legend Power Systems Financial Statement Overview

Summary

Legend Power Systems faces significant financial challenges characterized by declining revenues, consistent operational losses, and cash flow issues. While the company maintains a manageable debt level, the inability to generate positive cash flow and profitability raises concerns about its financial stability and growth prospects. Strategic changes may be necessary to improve operational efficiency and financial health.

Income Statement

Legend Power Systems has shown a declining revenue trend over the years with the latest TTM revenue at $1.95M, which is lower compared to previous years. The company is facing negative EBIT and EBITDA, indicating operational inefficiencies. Net income has consistently been negative, reflecting ongoing challenges in achieving profitability. The gross profit margin is extremely low at 1.2%, and the net profit margin is negative, further highlighting financial stress.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.25, which indicates relatively low leverage. However, the equity ratio has been declining, currently standing at 37.6%, suggesting a decrease in asset financing by equity. The ROE is negative, aligning with the net losses, which raises concerns about the company's ability to generate returns for shareholders.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, indicating cash outflows in core operations. However, there was a significant improvement in net cash flow from financing activities. The free cash flow to net income ratio is negative, which is a concern as it implies cash generation issues. The operating cash flow to net income ratio is negative, further emphasizing cash management challenges.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.95M	1.87M	1.11M	2.12M	2.71M	2.03M
	Gross Profit
23.37K	702.85K	194.18K	204.35K	571.25K	497.97K
	EBIT
-3.25M	-3.31M	-4.24M	-5.37M	-4.04M	-4.79M
	EBITDA
-3.07M	-3.11M	-3.91M	-5.14M	-3.61M	-4.54M
	Net Income Common Stockholders
-3.25M	-3.30M	-4.18M	-5.35M	-3.84M	-4.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
660.73K	236.72K	2.51M	3.09M	9.29M	2.29M
	Total Assets
3.06M	2.80M	5.23M	6.30M	11.80M	4.82M
	Total Debt
284.21K	324.83K	425.99K	189.16K	304.10K	241.82K
	Net Debt
-376.51K	88.11K	-2.08M	-2.90M	-8.98M	-2.04M
	Total Liabilities
1.91M	1.84M	1.23M	953.16K	1.71M	1.41M
	Stockholders Equity
1.15M	960.53K	3.99M	5.35M	10.09M	3.42M
Cash Flow		Free Cash Flow
-1.64M	-2.10M	-2.89M	-6.14M	-2.60M	-3.47M
	Operating Cash Flow
-1.63M	-2.09M	-2.89M	-6.07M	-2.57M	-3.35M
	Investing Cash Flow
-10.13K	-7.84K	0.00	-62.81K	-28.34K	-112.41K
	Financing Cash Flow
885.90K	-170.81K	2.32M	-160.53K	9.56M	53.73K

Legend Power Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LPS, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.18, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LPS.

Legend Power Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	75 Outperform	C$29.96B	42.49	9.33%	0.65%	11.98%	22.53%
NPI	73 Outperform	$4.84B	17.98	6.48%	6.61%	5.08%	―
CVE	67 Neutral	$29.18B	9.53	10.88%	4.60%	3.97%	-22.22%
BLN	65 Neutral	C$534.80M	―	-14.10%	―	31.68%	67.90%
Sector *	65 Neutral	$11.66B	15.54	6.23%	4.52%	5.50%	-9.06%
LPS	46 Neutral	C$19.15M	―	-157.10%	―	177.07%	29.71%
GPV	41 Neutral	C$18.58M	―	-218.43%	―	-57.55%	-31.45%

Legend Power Systems Corporate Events

Legend Power Systems Secures Rapid Order with New Voltage Risk Service

Legend Power Systems has announced that its new Voltage Adherence Risk measurement service has led to a rapid purchase order from a North American school district. The school district, facing equipment failures due to power quality issues, used Legend’s SmartGATE Insights Power Impact Report to identify significant risks, leading to a quick contract to address these issues. This development highlights the importance of visibility into power quality for proactive building management and underscores the impact of Legend’s new metric in accelerating decision-making for organizations.

Legend Power Systems Reports Strong Q1 F2025 Revenue Growth and Strategic Expansion

Legend Power Systems reported significant revenue growth in Q1 F2025, with a jump to $82,000 from $2,000 in Q1 F2024, alongside a marginal reduction in net loss. The company is scaling its SmartGATE™ deployments to meet growing demand, supported by successful financing and partnerships with utilities and Energy Service Companies. Their involvement in the Green Proving Ground program with the U.S. General Services Administration highlights the company’s expanding role in large-scale energy efficiency projects.

Legend Power Systems to Release Q1 2025 Financial Results and Host Webinar

Legend Power Systems Inc. has announced it will release its financial results for Q1 2025 on February 21, 2025, prior to market opening, accompanied by a business update webinar hosted by the CEO. This announcement is part of their ongoing efforts to engage stakeholders and demonstrate the impact of their energy management solutions on corporate performance and sustainability objectives.

Legend Power Systems Partners with Major Transportation Agency to Enhance Airport Energy Efficiency

Legend Power Systems has partnered with a major North American Transportation Agency to improve power quality and energy efficiency at one of the top ten airports in the United States. This initiative, involving the potential deployment of SmartGATE systems, aims to enhance the airport’s energy performance and resilience, reflecting a growing demand for sustainable energy solutions in critical infrastructure.

Legend Power Systems Concludes Private Placement to Boost Operations

Legend Power Systems Inc. has successfully completed the final tranche of a non-brokered private placement, raising a total of $1,613,090. The proceeds will be used for working capital, operating expenses, and sales pipeline advancement, positioning the company to strengthen its operational capabilities.

Legend Power Systems Partners with Unity Electric for NYC Expansion

Legend Power Systems has announced a strategic partnership with Unity Electric to expand the distribution and installation of its SmartGATE platform in the New York City metro area. This collaboration aims to tackle critical power challenges in commercial properties, enhancing energy efficiency and operational performance, while leveraging Equans’ extensive network for broader market opportunities.