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LiqTech International Inc (LIQT)
NASDAQ:LIQT
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LiqTech International
(NASDAQ:LIQT)
41Neutral
Positive Factors
Financial Strategy
Cost control measures have led to a lower break-even target, indicating improved financial management.
Growth Prospects
The company’s undemanding valuation coupled with high growth prospects represents an attractive risk/reward opportunity.
Market Expansion
LiqTech has announced an order for lithium production in the US, entering a new market for its filtration technology.
Negative Factors
Earnings
Q3 FY24 revenues were significantly below estimates due to a push-out of a large oil and gas pilot project.
Stock Valuation
The price target is being lowered to $6 to reflect the higher share count.
LiqTech International (LIQT) vs. S&P 500 (SPY)
Market Cap
$14.06M
Dividend YieldN/A
Average Volume (3M)8.51K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-18.87%
EPS Growth-9.47%
CountryUS
Employees105
SectorIndustrials
Sector Strength63
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.65
Shares Outstanding9,606,024
10 Day Avg. Volume7,911
30 Day Avg. Volume8,507
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)-2.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.20Price Target Upside105.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
LiqTech International Business Overview & Revenue Model
Company DescriptionLiqTech International (LIQT) is a leading company specializing in the development and manufacture of innovative filtration technologies for the purification and separation of liquids and gases. With a primary focus on clean technology, LiqTech serves various sectors including water treatment, oil and gas, and industrial applications. The company's core products include advanced ceramic membranes and filters designed to enhance efficiency and sustainability in fluid processing systems.
How the Company Makes MoneyLiqTech International generates revenue primarily through the sale of its proprietary ceramic membranes and filtration systems. These products are marketed to industries requiring robust solutions for liquid and gas purification, including municipal water treatment facilities, petrochemical companies, and manufacturers with significant waste management needs. The company also benefits from strategic partnerships and collaborations with key players in these sectors, which help to expand its market reach and drive sales. Additionally, LiqTech may engage in service contracts and maintenance agreements associated with its filtration systems, providing an ongoing revenue stream beyond initial product sales.
LiqTech International Financial Statement Overview
Summary
LiqTech International's financial performance is troubling with declining revenues, negative profitability, and severe liquidity challenges. The income statement, balance sheet, and cash flow statement all point to financial distress and operational inefficiencies.Income Statement
LiqTech International's income statement reveals significant challenges. The company has faced declining revenues over the past years, with a notable drop from $22.5M in 2020 to $14.6M in 2024. Gross profit margins have been minimal, and net income has been consistently negative, indicating profitability issues. The EBIT and EBITDA margins have remained negative, demonstrating operational inefficiencies. These factors cumulatively signal financial distress in the income statement.25
Negative
Balance Sheet
The balance sheet exhibits a concerning financial position. The company has shown zero stockholders' equity in 2024, a substantial decline from previous years, indicating potential insolvency risks. While total debt has been reduced to zero, the absence of equity and liabilities suggests significant restructuring or asset liquidation. Historically, the debt-to-equity ratio was high, contributing to financial instability.30
Negative
Cash Flow
The cash flow statement highlights severe liquidity challenges. Operating cash flows have been negative over the years, and there is no evidence of positive free cash flow, which indicates an inability to generate sufficient cash to fund operations. The free cash flow to net income ratio remains unfavorable, and the operating cash flow to net income ratio indicates cash flow inefficiencies. Such patterns raise concerns about operational sustainability.20
Very Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 15.13M | 14.60M | 18.00M | 15.98M | 18.27M | 22.53M | Gross Profit |
| 1.05M | 250.91K | 2.78M | 567.14K | 1.58M | 2.15M | EBIT |
| -9.03M | -9.49M | -7.80M | -10.64M | -10.69M | -8.26M | EBITDA |
| -7.09M | -9.49M | -5.08M | -12.53M | -7.95M | -7.33M | Net Income Common Stockholders |
| -10.55M | -10.35M | -8.57M | -14.17M | -11.13M | -9.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.86K | 0.00 | 9.48M | 16.60M | 15.36M | 2.71M | Total Assets |
| 5.04K | 32.43M | 35.97M | 40.13M | 45.05M | 42.21M | Total Debt |
| 1.32M | 0.00 | 12.22M | 11.54M | 24.46M | 8.69M | Net Debt |
| 1.32M | 0.00 | 2.74M | -5.06M | 9.10M | 5.98M | Total Liabilities |
| 19.59K | 0.00 | 18.70M | 16.82M | 32.28M | 17.39M | Stockholders Equity |
| -14.55K | 0.00 | 17.28M | 23.31M | 12.77M | 24.82M |
| Cash Flow | Free Cash Flow | ||||
| -8.35M | -8.90M | -7.08M | -13.73M | -8.34M | -6.41M | Operating Cash Flow |
| -6.74M | -7.53M | -4.18M | -12.04M | -7.20M | -2.60M | Investing Cash Flow |
| -653.67K | -424.04K | -2.89M | -1.69M | -1.45M | -4.01M | Financing Cash Flow |
| -263.40K | 8.49M | 580.64K | 13.70M | 13.90M | 7.22M |
LiqTech International Technical Analysis
Neutral
1.56
Price Trends
1.59
Negative
1.71
Negative
2.05
Negative
Market Momentum
>-0.01
Negative
55.66
Neutral
43.21
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 1.56 is above the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.59, and below the 200-day MA of 2.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 43.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LIQT.
LiqTech International Risk Analysis
LiqTech International disclosed 38 risk factors in its most recent earnings report. LiqTech International 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
LiqTech International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $7.26B | 12.38 | 3.01% | 3.40% | 3.58% | -14.13% | |
57 Neutral | $15.03M | ― | -29.07% | ― | -5.10% | 15.60% | |
48 Neutral | $17.21M | ― | -17.92% | ― | 13.33% | 55.32% | |
41 Neutral | $14.06M | ― | -60.98% | ― | -18.87% | -9.47% | |
41 Neutral | $21.06M | ― | -7.36% | ― | 11.47% | 54.59% | |
37 Underperform | $5.61M | ― | -438.89% | ― | -21.35% | -155.36% | |
35 Underperform | $13.93M | ― | -116.08% | ― | -100.00% | 24.94% |
* Industrials Sector Average
Performance Comparison
LIQT
LiqTech International
1.56
-1.29
-45.26%
CVV
CVD Equipment
2.67
-2.98
-52.74%
SIF
SIFCO Industries
2.63
-0.52
-16.51%
AQMS
Aqua Metals
1.64
-10.67
-86.68%
TOMZ
TOMI Environmental Solutions
0.76
0.16
26.67%
DFLI
Dragonfly Energy Holdings Corp
0.74
-3.45
-82.34%
LiqTech International Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: 1.96% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
LiqTech International's earnings call highlighted significant progress in revenue growth and strategic partnerships, particularly in the oil and gas sector. However, challenges remain with negative gross margins and disappointing sales in marine and pool markets. The overall sentiment is cautiously optimistic about future growth opportunities.Highlights
Record Commercial Order in Oil and Gas
The company received a record commercial order from Razorback Direct for PureFlow mobile units in the North American energy sector, showcasing significant progress in the oil and gas market.
Revenue Growth and Projections
Fourth quarter revenue was $3.4 million, a 37% sequential increase from the third quarter. Expectations for Q1 2025 revenue are between $4.3 and $4.7 million, indicating 26% to 38% sequential growth.
Successful Pilot Programs and Strategic Partnerships
Ongoing pilot programs in various industries, including lithium brine production and microplastics removal, show promise for future commercial orders. A strategic distribution agreement with Razorback Direct was highlighted.
Cost Reduction Strategy
Implemented cost reduction strategies, including a 10% reduction in headcount and a reduction in senior management salaries, aiming to lower breakeven targets.
Lowlights
Negative Gross Margins
The company experienced negative gross margins due to fixed production costs not being fully absorbed.
Disappointing Marine and Pool Sales
Marine scrubber and broader marine markets have slowed significantly in the past three years. Pool system sales were also disappointing in 2024 due to pipeline issues.
Inventory Adjustments
A comprehensive inventory review led to adjustments of $0.4 million related to obsolete and slow-moving items.
Company Guidance
In the LiqTech International Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call, CEO Fei Chen provided key guidance metrics and insights for the upcoming quarters. The company reported Q4 2024 revenues of $3.4 million, marking a 37% sequential increase from the previous quarter. This growth was driven by significant contributions from water treatment systems, which saw a 108% sequential increase in revenue. A landmark achievement was the receipt of a record commercial order from Razorback Direct for PureFlow mobile units, which has provided strong visibility for Q1 2025 revenues, expected to be between $4.3 and $4.7 million, indicating a projected sequential growth of 26% to 38%. Additionally, LiqTech aims to lower its breakeven target on an adjusted EBITDA basis to a quarterly revenue run rate of $5.5 to $6.0 million, aided by cost reduction strategies, including a 10% headcount reduction and salary cuts for senior management. This strategic focus, combined with a robust balance sheet boasting over $10 million in cash, positions the company to achieve profitability later in the year.LiqTech International Corporate Events
Executive/Board Changes
LiqTech International Appoints New CFO and COO
Positive
Jan 31, 2025
LiqTech International, Inc. announced the appointment of David Kowalczyk as Chief Financial Officer and Chief Operating Officer, effective March 1, 2025. Kowalczyk, who brings over 20 years of experience from various senior financial roles, is expected to leverage his expertise in financial planning and operational finance to drive the company’s growth and profitability. The current Interim CFO, Phillip Massie Price, will step down upon Kowalczyk’s arrival but remain until April 30, 2025, to ensure a smooth transition. The company expresses gratitude to Price for his contributions during his tenure.
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.