Liqtech International Inc (NASDAQ: LIQT)

Sector: Industrials Industry: Pollution & Treatment Controls CIK: 0001307579
Market Cap 16.27 Mn
P/B 1.27
P/E -1.82
P/S 0.97
ROIC (Qtr) -31.45
Div Yield % 0.00
Rev 1y % (Qtr) 53.63
Total Debt (Qtr) 13.23 Mn
Debt/Equity (Qtr) 1.03
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About

LiqTech International Inc., often recognized by its stock symbol LIQT, operates in the clean technology industry, specializing in the production of cutting-edge gas and liquid purification products. The company's operations span across three primary business areas: ceramic membranes for liquid filtration systems, ceramic diesel particulate filters (DPFs) for gas purification, and plastic components for various industries. LiqTech's business model revolves around the sale of its products and systems, which find utility in a diverse array of applications....

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Investment thesis

Bull case

  • Healthy cash reserves of 7.35M provide 6.41x coverage of short-term debt 1.15M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (5.98M) provides exceptional 136.91x coverage of minority interest expenses (43700), showing strong core operations.
  • Tangible assets of 30.01M provide exceptional 427.24x coverage of deferred revenue 70241, showing strong service capability backing.
  • Operating cash flow of (5.98M) fully covers other non-current liabilities (6257) by 956.17x, showing strong long-term stability.
  • Tangible assets of 30.01M provide robust 13.30x coverage of other current liabilities 2.26M, indicating strong asset backing.

Bear case

  • Investment activities of (568408) provide weak support for R&D spending of 1.15M, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (5.98M) provides insufficient coverage of deferred revenue obligations of 70241, which is -85.17x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (5.98M) shows concerning coverage of stock compensation expenses of 872978, with a -6.85 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.55M) provides weak coverage of capital expenditures of 568408, with a -11.53 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (8.73M) show weak coverage of depreciation charges of 2.42M, with a -3.60 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Pollution & Treatment Controls
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VLTO Veralto Corp 22.76 Bn 26.05 4.31 2.67 Bn
2 ZWS Zurn Elkay Water Solutions Corp 8.65 Bn 43.69 5.10 0.54 Bn
3 FSS Federal Signal Corp /De/ 7.21 Bn 168.93 10.04 0.24 Bn
4 CECO Ceco Environmental Corp 2.77 Bn 53.33 3.85 0.24 Bn
5 PCT PureCycle Technologies, Inc. 1.46 Bn -6.40 258.45 0.43 Bn
6 ERII Energy Recovery, Inc. 0.91 Bn 46.74 6.75 0.00 Bn
7 ADUR Aduro Clean Technologies Inc. 0.33 Bn -23.93 1,516.99 0.00 Bn
8 ARQ Arq, Inc. 0.13 Bn -34.10 1.13 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 3.33
EV to Cash from Ops. EV/CFO -3.51 -65.71
EV to Debt EV to Debt 1.59 136.79
EV to EBIT EV/EBIT -2.40 3.75
EV to EBITDA EV/EBITDA -3.52 8.77
EV to Free Cash Flow [EV/FCF] EV/FCF -3.20 2.21
EV to Market Cap EV to Market Cap 1.29 1.03
EV to Revenue EV/Rev 1.25 89.55
Price to Book Value [P/B] P/B 1.27 6.68
Price to Earnings [P/E] P/E -1.82 15.25
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.26
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.56
Interest Coverage Int. cover (Qtr) -42.16 -107.95
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.04 -82.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 62.15 79.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 15.72 -265.30
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.00 -75.61
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.29 -272.40
EBT Growth (1y) % EBT 1y % (Qtr) 16.86 -325.95
EPS Growth (1y) % EPS 1y % (Qtr) 45.36 2,177.75
FCF Growth (1y) % FCF 1y % (Qtr) 11.38 -76.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -21.12 7.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.42
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.37 2.16
Current Ratio Curr Ratio (Qtr) 3.50 3.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.03 0.60
Interest Cover Ratio Int Coverage (Qtr) -42.16 -107.95
Times Interest Earned Times Interest Earned (Qtr) -42.16 -107.95
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -37.60 -775.28
EBIT Margin % EBIT Margin % (Qtr) -52.02 -2,721.83
EBT Margin % EBT Margin % (Qtr) -53.26 -2,762.77
Gross Margin % Gross Margin % (Qtr) 4.90 -44.42
Net Profit Margin % Net Margin % (Qtr) -53.30 -2,763.74