LiqTech International (LIQT) AI Stock Analysis

• Market Cap: $19.06M
• Dividend Yield: N/A
• Average Volume (3M): 20.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 10.97%
• EPS Growth: 44.99%
• Country: US
• Employees: 105
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.15
• Shares Outstanding: 9,627,064
• 10 Day Avg. Volume: 21,765
• 30 Day Avg. Volume: 20,692
• PEG Ratio: -0.13
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -1.30
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 37.54
• Enterprise Value/Ebitda: -5.24
• 1Y Price Target: $4.20
• Price Target Upside: 91.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): $19.20M

• Rating: 41 Neutral
• Price Target: $1.50 ▼(-31.51% Downside)

LiqTech International's overall stock score is primarily impacted by its challenging financial performance and valuation. The company struggles with profitability and cash flow issues, which are significant concerns. Technical analysis indicates bearish momentum, further weighing on the score. While the earnings call provided some positive insights, it was not factored into the score due to the methodology.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand and successful market penetration, particularly in the water treatment systems segment.

Gross Margin Improvement

Improved gross margins suggest better cost management and operational efficiency, enhancing long-term profitability potential.

Strategic Developments in China

The joint venture in China opens new market opportunities, potentially driving future revenue growth and expanding global reach.

Negative Factors

Net Loss Reported

Ongoing net losses highlight persistent profitability challenges, which could strain financial resources and hinder long-term growth.

Cash Flow Issues

Negative cash flows indicate potential liquidity issues, limiting the company's ability to invest in growth and manage debt effectively.

Decline in CPF and Ceramic Membrane Sales

The decline in key product sales could signal weakening demand or increased competition, impacting future revenue streams.

LiqTech International Business Overview & Revenue Model

Company Description

LiqTech International (LIQT) is a leading provider of advanced filtration technologies and solutions, primarily focusing on the production of membranes and systems for water treatment and air filtration. The company operates within the environmental sector, offering innovative products that target the removal of contaminants and pollutants from water and air, thereby contributing to sustainability and environmental protection. LiqTech's core products include ceramic membranes, which are used in various applications such as wastewater treatment, industrial processes, and aquaculture.

How the Company Makes Money

LiqTech International generates revenue primarily through the sale of its filtration products and systems, which include ceramic membranes and complete filtration units. These products are sold to various industries, including oil and gas, food and beverage, and municipal water treatment plants. The company also earns revenue through service contracts related to the maintenance and support of its filtration systems. Additionally, LiqTech has formed strategic partnerships and collaborations with key industry players, enhancing its market reach and technological capabilities, which contribute to increased sales and revenue growth. The company's focus on innovation and expanding its product offerings in response to environmental regulations and demand for clean water solutions further drives its earnings potential.

LiqTech International Financial Statement Overview

Summary

LiqTech International faces substantial financial challenges across all verticals. The income statement shows persistent losses and low margins, while the balance sheet indicates manageable leverage but poor returns on equity. Cash flow issues are evident, with negative operating and free cash flows. The company needs to address operational inefficiencies and improve cost management to enhance profitability and cash flow stability.

Income Statement

LiqTech International's income statement reveals significant challenges. The company has consistently reported negative net profit margins, with the TTM (Trailing-Twelve-Months) net profit margin at -68.79%. Revenue growth has been inconsistent, with a slight increase of 3.15% in the TTM period. However, the gross profit margin is extremely low at 0.70%, indicating issues with cost management. The EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.86 in the TTM period, which is relatively stable compared to previous years. However, the return on equity remains negative at -74.42%, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is not provided, but the overall leverage appears manageable, though profitability remains a concern.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is 1.17, suggesting that while free cash flow covers net income, both figures are negative. The operating cash flow to net income ratio is also negative, highlighting cash flow issues. Free cash flow growth has been negative, reflecting ongoing cash management difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.79M	14.60M	18.00M	15.98M	18.27M	22.53M
Gross Profit	829.64K	250.91K	2.78M	567.14K	1.58M	2.15M
EBITDA	-5.94M	-7.48M	-5.48M	-11.40M	-7.74M	-7.33M
Net Income	-8.94M	-10.35M	-8.57M	-14.17M	-11.13M	-9.81M
Balance Sheet
Total Assets	30.30M	32.43M	35.97M	40.13M	45.05M	42.21M
Cash, Cash Equivalents and Short-Term Investments	7.35M	10.87M	9.48M	15.16M	15.36M	11.75M
Total Debt	13.23M	11.81M	12.22M	11.54M	24.46M	8.69M
Total Liabilities	17.52M	15.77M	18.70M	16.82M	32.28M	17.39M
Stockholders Equity	12.81M	16.65M	17.28M	23.31M	12.77M	24.82M
Cash Flow
Free Cash Flow	-6.60M	-8.90M	-7.08M	-13.73M	-8.34M	-6.41M
Operating Cash Flow	-5.98M	-7.53M	-4.18M	-12.04M	-7.20M	-2.60M
Investing Cash Flow	-561.44K	-424.04K	-2.89M	-1.69M	-1.45M	-4.01M
Financing Cash Flow	9.40M	8.49M	580.64K	13.70M	13.90M	7.22M

LiqTech International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LIQT, the sentiment is Neutral. The current price of 2.19 is above the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.42, and above the 200-day MA of 1.90, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LIQT.

LiqTech International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$7.85M	10.83	―	―	-14.25%	-59.84%
CLIR	52 Neutral	$45.34M	-7.69	-53.13%	―	-49.70%	-2.72%
FTEK	44 Neutral	$78.31M	-23.98	-7.10%	―	-5.66%	-397.46%
TOMZ	41 Neutral	$15.81M	―	-108.76%	―	-30.61%	-111.40%
LIQT	41 Neutral	$19.06M	―	-73.79%	―	10.97%	44.99%
SCWO	39 Underperform	$65.53M	-3.44	-232.63%	―	―	―

LiqTech International Corporate Events

LiqTech International Reports Strong Q3 2025 Growth

LiqTech International, Inc., a clean technology company specializing in advanced filtration technologies, has reported its financial results for the third quarter of 2025, showcasing significant growth and operational improvements.

LiqTech International’s Earnings Call Highlights Growth and Challenges

LiqTech International’s recent earnings call conveyed a cautiously optimistic sentiment, underscored by substantial improvements in revenue and gross margins. The company’s water treatment systems, especially in the swimming pool sector, demonstrated strong performance, contributing significantly to the positive financial outcomes. Despite these gains, challenges such as declining CPF and ceramic membrane sales and a net loss, albeit reduced, were acknowledged. A slight adjustment in revenue guidance due to timing issues added a note of caution to the overall positive outlook.

LiqTech International Reports Strong Revenue Growth Amid Challenges

LiqTech International’s recent earnings call painted a picture of robust revenue growth and strategic successes across its various business segments, including swimming pools, ceramics, and plastics. The company expressed an optimistic outlook for the rest of the year, despite facing challenges such as reduced gross margins and decreased sales in certain areas, along with a continued net loss.