LiqTech International (LIQT) AI Stock Analysis

• Market Cap: $15.47M
• Dividend Yield: N/A
• Average Volume (3M): 7.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -18.87%
• EPS Growth: -9.47%
• Country: US
• Employees: 105
• Sector: Industrials
• Sector Strength: 64
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -1.65
• Shares Outstanding: 9,606,024
• 10 Day Avg. Volume: 11,721
• 30 Day Avg. Volume: 7,764
• PEG Ratio: N/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 Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.40
• Price Target Upside: 111.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

LiqTech International's stock score reflects serious financial challenges, with negative profitability and liquidity issues weighing heavily on its outlook. The earnings call suggests potential for improvement through revenue growth and strategic cost reductions, yet persistent negative margins and valuation challenges remain significant concerns. Technical indicators provide mixed signals, with some short-term optimism but long-term caution. Overall, the stock requires careful consideration due to its current financial and operational risks.

Positive Factors

Market Expansion

LiqTech had expanded distribution for its swimming pool filtration systems to Ireland and received supplier approval for its marine scrubber systems.

New Orders

LiqTech announced a large commercial order for its PureFlow mobile water filtration units, marking a significant milestone for the company.

Sales Performance

Sales were up 36% from the prior quarter, indicating the company has likely passed the low point in quarterly sales.

Negative Factors

Revenue Miss

Q3 FY24 revenues were significantly below estimates due to a push-out of a large oil and gas pilot project.

Risk Factors

Low visibility and potential dilution remain the biggest risks to the price target.

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 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 presents significant challenges. The income statement shows declining revenues and negative profitability, while the balance sheet indicates potential insolvency risks due to zero stockholders' equity. The cash flow statement highlights severe liquidity issues, with negative operating cash flows and no evidence of positive free cash flow. Overall, the financial outlook is concerning, requiring strategic changes to improve the company's standing.

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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.60M	18.00M	15.98M	18.27M	22.53M
	Gross Profit
250.91K	2.78M	567.14K	1.58M	2.15M
	EBIT
-9.49M	-7.80M	-10.64M	-10.69M	-8.26M
	EBITDA
-6.87M	-5.08M	-12.53M	-7.95M	-7.33M
	Net Income Common Stockholders
-10.35M	-8.57M	-14.17M	-11.13M	-9.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.87M	9.48M	16.60M	15.36M	2.71M
	Total Assets
32.43M	35.97M	40.13M	45.05M	42.21M
	Total Debt
11.81M	12.22M	11.54M	24.46M	8.69M
	Net Debt
944.93K	2.74M	-5.06M	9.10M	5.98M
	Total Liabilities
15.77M	18.70M	16.82M	32.28M	17.39M
	Stockholders Equity
16.65M	17.28M	23.31M	12.77M	24.82M
Cash Flow		Free Cash Flow
-8.90M	-7.08M	-13.73M	-8.34M	-6.41M
	Operating Cash Flow
-7.53M	-4.18M	-12.04M	-7.20M	-2.60M
	Investing Cash Flow
-424.04K	-2.89M	-1.69M	-1.45M	-4.01M
	Financing Cash Flow
8.49M	580.64K	13.70M	13.90M	7.22M

LiqTech International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1.61 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.53, and below the 200-day MA of 2.01, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 41.38 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
Sector *	63 Neutral	$4.26B	11.28	5.43%	215.24%	4.12%	-8.73%
SIF	45 Neutral	$16.35M	―	-17.92%	―	13.33%	55.32%
CVV	42 Neutral	$20.85M	―	-7.36%	―	11.47%	54.59%
DFLI	42 Neutral	$3.78M	―	-438.89%	―	-21.35%	-155.36%
LIQT	41 Neutral	$15.47M	―	-60.98%	―	-18.87%	-9.47%
TOMZ	38 Underperform	$16.39M	―	-71.87%	―	5.23%	-30.55%
AQMS	36 Underperform	$12.35M	―	-116.08%	―	-100.00%	24.94%

LiqTech International Corporate Events

LiqTech International Appoints New CFO and COO

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.