Liquidmetal Technologies (LQMT) AI Stock Analysis

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Liquidmetal Technologies

(OTC:LQMT)

53Neutral

Liquidmetal Technologies presents a mixed picture: strong revenue growth and a solid balance sheet are overshadowed by ongoing profitability challenges and cash flow problems. Technical indicators suggest strong upward momentum, but valuation metrics highlight significant financial losses. The optimistic earnings call provides some assurance of future improvements, but external challenges like tariffs add uncertainty.

Liquidmetal Technologies (LQMT) vs. S&P 500 (SPY)

Market Cap

$84.99M

Dividend YieldN/A

Average Volume (3M)1.96M

Price to Earnings (P/E)―

Beta (1Y)0.82

Revenue Growth68.63%

EPS Growth27.27%

CountryUS

Employees7

SectorIndustrials

Sector Strength66

IndustryManufacturing - Metal Fabrication

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding917,285,160

10 Day Avg. Volume711,169

30 Day Avg. Volume1,956,789

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)67.20

Price to Cash Flow (P/CF)2135.60

P/FCF Ratio2135.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Liquidmetal Technologies Business Overview & Revenue Model

Company DescriptionLiquidmetal Technologies, Inc. (LQMT) is a materials technology company that specializes in the development and commercialization of amorphous metal alloys, also known as bulk metallic glasses. These materials possess unique properties, such as high strength, elasticity, and resistance to wear and corrosion, which make them suitable for various applications across industries including medical, automotive, aerospace, and consumer electronics. Liquidmetal Technologies aims to leverage its proprietary materials and manufacturing processes to deliver innovative solutions and components to its clients.

How the Company Makes MoneyLiquidmetal Technologies generates revenue primarily through the licensing of its proprietary amorphous metal alloy technology and the sale of products made from these materials. The company collaborates with various manufacturing partners to produce components and parts that incorporate its unique materials, thereby benefiting from production efficiencies and scalability. Additionally, Liquidmetal Technologies engages in partnerships and joint ventures with companies in different sectors to expand the use of its alloys in new applications, further enhancing its revenue streams. The company's earnings are significantly influenced by its ability to secure licensing agreements, expand its customer base, and innovate within its core technology offerings.

Liquidmetal Technologies Financial Statement Overview

Summary

Liquidmetal Technologies shows potential in revenue growth with a 68.63% increase but struggles significantly with profitability and cash flow management. The balance sheet strength, with low debt-to-equity and high equity ratio, provides some stability. However, persistent losses and cash flow challenges highlight the need for strategic changes.

Income Statement

Negative

The company's revenue growth shows positive movement with a 68.63% increase from 2023 to 2024. However, profitability metrics such as EBIT and net profit margins are deeply negative, indicating ongoing operational challenges. The gross profit margin is positive at 25.23%, but the significant negative EBIT and EBITDA margins highlight inefficiencies and high operational costs.

Balance Sheet

Neutral

Liquidmetal Technologies has a very low debt-to-equity ratio, suggesting limited leverage and a strong equity position. The equity ratio is high at 95.92%, indicating a solid balance sheet with limited liabilities. However, the return on equity is negative, reflecting the company's inability to generate positive returns for its shareholders.

Cash Flow

Negative

The cash flow situation is strained with negative operating and free cash flows. The operating cash flow to net income ratio is positive, indicating that cash flow issues are somewhat aligned with net income losses. The lack of free cash flow growth further emphasizes the need for operational improvements.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
860.00K	510.00K	383.00K	811.00K	989.00K
	Gross Profit
217.00K	149.00K	67.00K	183.00K	368.00K
	EBIT
-3.31M	-3.08M	-3.05M	-4.06M	-3.54M
	EBITDA
-2.99M	-2.73M	-2.71M	-3.69M	-3.14M
	Net Income Common Stockholders
-1.51M	-2.05M	-1.61M	-3.22M	-2.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.01M	22.13M	18.70M	17.94M	16.23M
	Total Assets
30.40M	31.84M	33.34M	35.60M	38.81M
	Total Debt
9.45M	0.00	0.00	0.00	0.00
	Net Debt
-6.01M	-8.84M	-2.27M	-4.09M	-1.51M
	Total Liabilities
1.26M	1.25M	1.30M	1.31M	1.42M
	Stockholders Equity
29.14M	30.67M	32.12M	34.37M	37.47M
Cash Flow		Free Cash Flow
-1.16M	-1.31M	-1.78M	-2.73M	-2.35M
	Operating Cash Flow
-1.16M	-1.31M	-1.78M	-2.73M	-2.23M
	Investing Cash Flow
-1.67M	7.88M	-258.00K	5.31M	-15.80M
	Financing Cash Flow
0.00	0.00	212.00K	0.00	0.00

Liquidmetal Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.09

Price Trends

50DMA

0.06

Positive

100DMA

0.05

Positive

200DMA

0.05

Positive

Market Momentum

MACD

<0.01

Positive

RSI

60.69

Neutral

STOCH

52.50

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LQMT, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 52.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LQMT.

Liquidmetal Technologies Risk Analysis

Liquidmetal Technologies disclosed 34 risk factors in its most recent earnings report. Liquidmetal Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Liquidmetal Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODA	72 Outperform	$70.41M	18.02	7.61%	―	15.63%	64.98%
TAYD	67 Neutral	$95.17M	13.18	15.52%	―	-1.02%	-7.87%
Sector *	62 Neutral	$4.13B	11.17	5.46%	215.76%	4.12%	-8.54%
TISI	55 Neutral	$107.62M	―	-161.69%	―	-1.20%	50.12%
LQMT	53 Neutral	$84.99M	―	-5.04%	―	68.63%	27.27%
LASE	50 Neutral	$36.28M	―	-30.59%	―	-44.07%	-78.93%
OPTT	38 Underperform	$64.35M	―	-80.51%	―	23.98%	52.50%

* Industrials Sector Average

Performance Comparison

LQMT

Liquidmetal Technologies

0.09

0.03

50.00%

OPTT

Ocean Power Technologies

0.37

0.18

94.74%

TAYD

Taylor Devices

30.34

-23.44

-43.58%

TISI

Team

23.95

17.20

254.81%

CODA

Coda Octopus Group

6.11

-0.45

-6.86%

LASE

Laser Photonics Corp.

2.54

0.40

18.69%

Liquidmetal Technologies Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: 125.00% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements, including FDA approval for Movano's health rings, expansion in the medical tools industry, and prototype development in the fintech sector. Financially, the company showed revenue growth and progress towards cash flow break-even. However, the impact of tariff increases on Chinese imports poses a challenge.

Highlights

FDA Approval for Movano EV Health Rings

Movano received U.S. FDA 510(k) clearance for the pulse oximeter for its EVMed ring, enabling the pursuit of multibillion-dollar business opportunities in health monitoring solutions.

Expansion in Medical Tools Industry

Completed prototype phase for a startup medical tool company and entered general production. Other medical device prototypes include an annular stapler device, an inhaler device, and cochlear implants.

Prototype Development in Fintech Sector

Prototyping a premium credit card product for a first-tier U.S. financial institution using liquidmetal's unique alloy.

Revenue Growth and Financial Position

Ended 2024 with $900,000 in revenue, an increase from previous years, with $22.5 million in liquid cash and investments, and no debt.

Progress Toward Cash Flow Break-even

Negative $800,000 EBITDA for year-end 2024, which is about half that of year-end 2023, indicating progress towards cash flow break-even.

Lowlights

Impact of Tariff Increases on Chinese Imports

Tariff increases have led to necessary price hikes for customers, ranging from 10% to 35%, impacting operations.

Company Guidance

During the fiscal year 2024 conference call, Liquidmetal Technologies, Inc. CEO Tony Chung highlighted significant progress and future prospects for the company. Key achievements included the enhancement and increased orders for the Movano EV Health Rings, especially following FDA 510(k) clearance, positioning the product for large-scale health monitoring applications. The company also advanced in the medical tools industry with prototypes for various devices, such as a medical annular stapler and cochlear implants, and secured their first MIM order for surgical applications. Additionally, Liquidmetal is prototyping a premium credit card for a U.S.-based financial institution, leveraging their unique alloy technology. Despite challenges from increased tariffs on Chinese imports, resulting in a 10% to 35% price hike, the company remains optimistic about its financial health. They closed 2024 with $900,000 in revenue, $22.5 million in liquid assets, and zero debt, with a negative EBITDA of $800,000, marking progress toward breakeven. Looking ahead, the company is focused on revenue growth, achieving positive cash flow, and profitability, while actively pursuing a second source manufacturing opportunity in Asia.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.