Loop Energy, headquartered in Vancouver, develops and manufactures patented hydrogen proton exchange membrane fuel cells. It is targeting the return to base fleet market, where it has a growing order book with 12 customers.
More Loop Energy content >Investment summary
Loop Energy’s patented PEM fuel cell technology has a leading combination of fuel efficiency, power density and durability, resulting in an attractive total cost of ownership (TCO), providing the company with a competitive advantage. This is supported by a recent transformational commercial order with electric truck maker Tevva, won via a competitive tender process. Loop Energy is targeting disruptors and early movers in electrification of the return-to-base fleet segment of road transport, which should help it to ramp up sales and drive down costs relatively quickly. We consider only the truck and bus markets, which are a portion of the company’s total addressable market, and estimate a US$4bn market in 2030 and a c US$60bn market by 2050. Our DCF valuation for Loop Energy implies C$4.5/share at a 15% cost of capital, which is more than double the current share price. This increases sharply as the investment case de-risks.
Y/E Dec |
Revenue (C$m) |
EBITDA (C$m) |
PBT (C$m) |
EPS (fd) (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 0.5 | (7.5) | (8.9) | (43.98) | N/A | N/A |
| 2021A | 1.4 | (23.5) | (25.1) | (74.77) | N/A | N/A |
| 2022E | 4.2 | (39.4) | (42.5) | (118.89) | N/A | N/A |
| 2023E | 28.0 | (43.9) | (47.6) | (132.48) | N/A | N/A |
Content on Loop Energy
Sector |
|---|
|
Industrials
Access more Industrials content
|
Share price graph
Balance sheet |
|
|---|---|
| Forecast net debt (C$m) | 2.6 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||
| *% relative to local index | |||||||||||||||
Key management |
|
|---|---|
| Kent Thexton | Chairman |
| Ben Nyland | CEO |
| Damian Towns | CFO |