LiqTech International (LIQT) AI Stock Analysis

• Market Cap: $25.00M
• Dividend Yield: N/A
• Average Volume (3M): 18.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -12.76%
• EPS Growth: 15.23%
• Country: US
• Employees: 105
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.22
• Shares Outstanding: 9,614,043
• 10 Day Avg. Volume: 24,705
• 30 Day Avg. Volume: 18,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 192.66
• Enterprise Value/Ebitda: -2.66
• 1Y Price Target: $2.50
• Price Target Upside: -5.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: $2.50 ▼(-5.30% Downside)

LiqTech International's overall stock score is primarily impacted by its poor financial performance, with persistent losses and cash flow issues. While technical indicators show some positive momentum, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some optimism with revenue growth, but profitability challenges persist.

Positive Factors

Positive Outlook

A positive revenue outlook reflects strategic planning and potential for achieving financial targets, boosting investor confidence.

Strategic Achievements

Strong performance in niche segments like swimming pools demonstrates effective market penetration and potential for sustained growth.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, enhancing long-term financial stability.

Negative Factors

Reduced Gross Margins

Declining gross margins suggest cost management issues, impacting profitability and financial health over the long term.

Cash Flow Issues

Negative cash flows highlight liquidity constraints, potentially limiting the company's ability to invest in growth opportunities.

Persistent Losses

Ongoing losses and low margins indicate operational inefficiencies, challenging the company's ability to achieve profitability.

LiqTech International Business Overview & Revenue Model

Company Description

LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. It operates in three segments: Water, Ceramics, and Plastics. The company manufactures and sells silicon carbide ceramic filtration technologies for liquid and gas purification; and diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market. It also develops, manufactures, and sells liquid filtration systems, which are used for the marine scrubber systems, filtration of produced water, pre-filtration of reverse osmosis drinking water, industrial applications, producing clean drinking water, pool and spa water, food and beverage applicationz, seawater reverse osmosis, filter press, and UV disinfection. In addition, the company manufactures machined and welded plastic parts. LiqTech International, Inc. sells its products primarily to industrial customers through direct sales, systems integrators, distributors, agents, and partners. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2000 and is headquartered in Ballerup, Denmark.

How the Company Makes Money

LiqTech International generates revenue primarily through the sale of its ceramic membrane products and filtration systems. The company has established key revenue streams from both direct sales to end-users and partnerships with original equipment manufacturers (OEMs) who integrate LiqTech's technologies into their own systems. Additionally, LiqTech benefits from ongoing maintenance and service contracts, which provide a steady income stream. The company's strategic collaborations in various sectors, particularly in the marine industry and with environmental agencies, further enhance its market reach and revenue potential. Overall, LiqTech's innovative solutions and strong partnerships are critical factors contributing to its financial performance.

LiqTech International Financial Statement Overview

Summary

LiqTech International is facing significant financial challenges with declining revenues, persistent losses, and negative cash flows. The balance sheet shows moderate leverage, but decreasing equity and ongoing liquidity issues suggest underlying financial instability.

Income Statement

LiqTech International has faced declining revenue over recent years, with TTM revenue at $14.99M, down from $18.27M in 2021. The company is experiencing persistent losses, including a negative net income of $10.31M for the TTM. Gross profit margin remains low at 0.70%, and the net profit margin is significantly negative at -68.78%. These metrics highlight ongoing profitability challenges.

Balance Sheet

The balance sheet indicates moderate financial stability with a debt-to-equity ratio of 0.86, reflecting manageable leverage. However, stockholders' equity has decreased over time, now at $15.06M. The equity ratio stands at 46.23%, suggesting reasonable asset financing through equity. Despite these, declining equity levels pose a potential risk.

Cash Flow

Cash flow analysis shows a negative operating cash flow of $6.87M for the TTM, indicating liquidity struggles. The free cash flow is also negative at $8.02M, with a free cash flow to net income ratio of 0.78, illustrating inefficiencies in converting revenue to cash. Although financing activities have provided some cash inflow, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.99M	14.61M	18.00M	15.98M	18.27M	22.53M
Gross Profit	104.27K	250.91K	2.77M	567.14K	1.58M	2.15M
EBITDA	-7.54M	-7.48M	-5.08M	-11.40M	-7.74M	-7.33M
Net Income	-10.31M	-10.35M	-8.57M	-14.17M	-11.13M	-9.81M
Balance Sheet
Total Assets	32.57M	32.43M	35.97M	40.13M	45.05M	42.21M
Cash, Cash Equivalents and Short-Term Investments	10.45M	10.87M	9.48M	16.60M	15.36M	2.71M
Total Debt	12.99M	11.81M	12.22M	11.54M	24.46M	8.69M
Total Liabilities	17.50M	15.77M	18.70M	16.82M	32.28M	17.39M
Stockholders Equity	15.06M	16.65M	17.28M	23.31M	12.77M	24.82M
Cash Flow
Free Cash Flow	-8.02M	-8.90M	-7.08M	-13.73M	-8.34M	-6.41M
Operating Cash Flow	-6.87M	-7.53M	-4.18M	-12.04M	-7.20M	-2.60M
Investing Cash Flow	-1.09M	-424.04K	-2.89M	-1.69M	-1.45M	-4.01M
Financing Cash Flow	10.49M	8.49M	580.64K	13.70M	13.90M	7.22M

LiqTech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIQT, the sentiment is Positive. The current price of 2.64 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.11, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 64.01 is Neutral, neither overbought nor oversold. The STOCH value of 76.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LIQT.

LiqTech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLWT	72 Outperform	10.44M	14.20	4.66%	―	-14.25%	-59.84%
CLIR	58 Neutral	26.62M	-4.45	-38.50%	―	19.03%	11.70%
FTEK	53 Neutral	94.78M	-31.59	-4.63%	―	-4.78%	-1359.72%
LIQT	50 Neutral	$25.00M	―	-78.97%	―	-12.76%	15.23%
TOMZ	42 Neutral	20.68M	-4.22	-109.22%	―	-12.72%	-36.80%
SCWO	39 Underperform	51.39M	-3.05	0.00%	―	0.00%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%