Breaking Down LiqTech International, Inc. (LIQT) Financial Health: Key Insights for Investors

Are you keeping a close watch on LiqTech International, Inc. (LIQT) and trying to gauge its financial stability? Delving into the numbers, 2024 presented a mixed bag: While Q4 revenue saw a sequential increase of 37% reaching $3.4 million, the full year revenue was $14.6 million, a 19% decrease compared to $18.0 million in 2023. With a net loss of $10.3 million for 2024, how is LiqTech strategizing to navigate these challenges, and what does it mean for investors like you? Keep reading to explore key insights into LiqTech's financial health and future outlook.

LiqTech International, Inc. (LIQT) Revenue Analysis

LiqTech International, Inc. (LIQT) operates primarily in the clean technology sector, focusing on the development and manufacturing of ceramic membranes for filtration solutions. Understanding the sources and trends in their revenue is crucial for investors.

LiqTech's revenue streams can be broken down by:

• Products: Sales of silicon carbide (SiC) ceramic membranes and systems.
• Services: Revenue from aftermarket services, including replacement parts and technical support.
• Regions: Revenue is generated globally, with a focus on Europe, Asia, and North America.

Analyzing LiqTech International, Inc. (LIQT)'s financial performance requires a look at its year-over-year revenue growth. While specific growth rates fluctuate annually, examining historical trends provides insight. For instance, investors should note any significant percentage increases or decreases in revenue, as these can signal shifts in market demand, technological advancements, or competitive pressures. Reviewing annual reports and financial statements is essential to understanding these trends.

To illustrate the contribution of different business segments to LiqTech’s overall revenue, consider the following hypothetical breakdown:

Investors should monitor any significant changes in LiqTech's revenue streams, such as a growing reliance on aftermarket services or a decline in membrane system sales. These shifts can indicate changes in the company's strategic focus or the evolving needs of its customer base.

For a deeper dive into investor profiles and motivations, check out: Exploring LiqTech International, Inc. (LIQT) Investor Profile: Who’s Buying and Why?

LiqTech International, Inc. (LIQT) Profitability Metrics

Analyzing LiqTech International, Inc. (LIQT)'s profitability involves examining its gross profit, operating profit, and net profit margins, alongside trends in these metrics over time. Comparing these ratios with industry averages and scrutinizing operational efficiency, such as cost management and gross margin trends, provides a comprehensive view of the company's financial health.

As of the fiscal year 2024, LiqTech International, Inc. (LIQT) presents a complex financial picture. While specific figures for 2024 gross profit, operating profit, and net profit margins are not available in the provided search results, we can infer insights based on available data.

To provide a more detailed analysis, it's essential to consider the following profitability metrics:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This ratio reveals the percentage of revenue remaining after deducting operating expenses (e.g., salaries, rent, and marketing). It gauges the company's profitability from its core business operations.
• Net Profit Margin: This ratio shows the percentage of revenue remaining after deducting all expenses, including interest and taxes. It represents the company's overall profitability.

Ideally, a healthy company should exhibit positive and increasing trends in these profitability margins. However, without specific 2024 figures, it's challenging to assess LiqTech International, Inc. (LIQT)'s current profitability accurately.

When evaluating LiqTech International, Inc. (LIQT)'s profitability, it's crucial to compare its ratios with industry averages. This comparison helps determine whether the company is performing better or worse than its peers. For instance, if LiqTech International, Inc. (LIQT)'s gross profit margin is lower than the industry average, it may indicate that the company faces challenges in managing production costs or pricing its products competitively.

Operational efficiency plays a significant role in LiqTech International, Inc. (LIQT)'s profitability. Effective cost management and favorable gross margin trends can contribute to improved profitability. For example, if the company can reduce its production costs or increase its selling prices without significantly impacting sales volume, its gross profit margin will likely improve.

For detailed insights into LiqTech International, Inc. (LIQT)'s mission, vision, and core values, you can explore Mission Statement, Vision, & Core Values of LiqTech International, Inc. (LIQT).

LiqTech International, Inc. (LIQT) Debt vs. Equity Structure

Understanding how LiqTech International, Inc. (LIQT) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing.

Here’s a breakdown of LiqTech International, Inc. (LIQT)'s debt versus equity structure:

As of the fiscal year 2024, LiqTech International, Inc. (LIQT) reported the following:

• Total Debt: Specific figures for long-term and short-term debt will provide a clear picture of LiqTech International, Inc. (LIQT)’s overall debt obligations.
• Long-Term Debt: This indicates the debt due beyond one year, reflecting long-term financial commitments.
• Short-Term Debt: This represents the portion of debt due within one year, showing immediate liabilities.

Analyzing these components helps assess LiqTech International, Inc. (LIQT)'s ability to manage its debt obligations and its financial flexibility.

The debt-to-equity ratio is a key metric for evaluating LiqTech International, Inc. (LIQT)'s financial leverage. It is calculated by dividing total liabilities by shareholder equity. As of the fiscal year 2024, LiqTech International, Inc. (LIQT) has a debt-to-equity ratio of 0.22. This indicates that for every dollar of equity, LiqTech International, Inc. (LIQT) has $0.22 of debt. A lower ratio generally suggests less financial risk, while a higher ratio could indicate greater reliance on debt financing.

Comparing LiqTech International, Inc. (LIQT)'s debt-to-equity ratio to industry standards provides valuable context. Here’s a comparative analysis:

• LiqTech International, Inc. (LIQT): 0.22
• Industry Average: The specific industry average will offer a benchmark to determine if LiqTech International, Inc. (LIQT)'s leverage is higher or lower than its peers.

This comparison helps investors understand whether LiqTech International, Inc. (LIQT)'s financial leverage is typical for its industry.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact LiqTech International, Inc. (LIQT)'s financial health. Specific details include:

• Debt Issuances: Any new debt issued in 2024 and early 2025.
• Credit Ratings: Current credit ratings from agencies like Standard & Poor's or Moody's.
• Refinancing Activity: Any recent efforts to refinance existing debt to improve terms or reduce interest rates.

These activities provide insights into LiqTech International, Inc. (LIQT)'s strategies for managing its debt and its perceived creditworthiness.

LiqTech International, Inc. (LIQT) strategically balances debt and equity financing to fund its growth and operations. The approach involves:

• Optimal Capital Structure: Maintaining a mix of debt and equity that minimizes the cost of capital.
• Flexibility: Ensuring access to capital markets for future funding needs.
• Risk Management: Avoiding excessive debt levels that could jeopardize financial stability.

Understanding this balance is essential for assessing LiqTech International, Inc. (LIQT)'s long-term financial sustainability. More information about the company can be found at: Mission Statement, Vision, & Core Values of LiqTech International, Inc. (LIQT).

LiqTech International, Inc. (LIQT) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For LiqTech International, Inc. (LIQT), assessing these metrics provides valuable insights into its financial stability and operational efficiency.

Assessing LiqTech International, Inc.'s Liquidity:

Analyzing LiqTech International, Inc.'s liquidity involves examining several key ratios and financial statement components:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Working capital, defined as the difference between current assets and current liabilities, indicates a company's operational liquidity. Monitoring trends in working capital helps identify whether the company's ability to meet its short-term obligations is improving or deteriorating.
• Cash Flow Statements Overview: The cash flow statement provides a comprehensive view of all cash inflows and outflows during a specific period, categorized into operating, investing, and financing activities.

Here's a detailed look into each of these components:

Current and Quick Ratios

These ratios are pivotal in understanding LiqTech International, Inc.'s short-term financial health. The current ratio, calculated as current assets divided by current liabilities, indicates the company's ability to cover its immediate liabilities with its current assets. A ratio above 1 suggests that the company has enough liquid assets to meet its short-term obligations.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure by excluding inventories from current assets. This is because inventories may not be easily convertible to cash. The formula is (Current Assets - Inventory) / Current Liabilities. A higher quick ratio indicates better liquidity.

Analysis of Working Capital Trends

Working capital is the difference between a company’s current assets and current liabilities. It is a measure of a company's operational liquidity and short-term financial health. Monitoring the trends in working capital can reveal whether LiqTech International, Inc.'s ability to meet its short-term obligations is improving or declining.

Effective management of working capital involves optimizing the levels of inventory, accounts receivable, and accounts payable. An increasing working capital balance generally indicates that a company is growing and has the ability to invest further in its operations. Conversely, a decreasing working capital balance may signal potential liquidity issues.

Cash Flow Statements Overview

The cash flow statement is a critical financial statement that reports the cash inflows and outflows during a specific period. It is divided into three main sections:

• Operating Activities: This section includes cash flows from the normal day-to-day activities of the business. It reflects the cash generated from the company's core business operations.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E), and investments in other companies.
• Financing Activities: This section includes cash flows related to debt, equity, and dividends. It reflects how the company is financed and how it returns capital to its investors.

Analyzing the trends in operating, investing, and financing cash flows provides insights into LiqTech International, Inc.'s financial strategy and health. Positive operating cash flow indicates that the company is generating enough cash from its core operations to sustain and grow the business. Negative investing cash flow typically indicates that the company is investing in its future growth. Financing activities can show how the company is raising capital or returning it to shareholders.

Potential Liquidity Concerns or Strengths

Based on the analysis of these metrics, potential liquidity concerns or strengths can be identified:

• Liquidity Strengths: Consistent positive cash flow from operations, healthy current and quick ratios, and effective working capital management.
• Liquidity Concerns: Declining cash reserves, decreasing current and quick ratios, and negative operating cash flow.

For additional insights into the investors and stakeholders of LiqTech International, Inc., consider exploring: Exploring LiqTech International, Inc. (LIQT) Investor Profile: Who’s Buying and Why?

LiqTech International, Inc. (LIQT) Valuation Analysis

Determining whether LiqTech International, Inc. (LIQT) is overvalued or undervalued requires analyzing several key financial metrics and market indicators.

Here's a breakdown of essential valuation factors:

• Mission Statement, Vision, & Core Values of LiqTech International, Inc. (LIQT).

Price-to-Earnings (P/E) Ratio:

As of April 17, 2025, LIQT's P/E ratio is -0.93. A negative P/E ratio suggests that the company is currently not profitable, which makes it difficult to interpret this ratio in isolation. Estimates for the next few years are also negative: -2.57 for 2025 and -3.85 for 2026.

Price-to-Book (P/B) Ratio:

The Price-to-Book ratio as of March 14, 2025, is 0.76. Another source indicates a P/B ratio of 0.87 as of April 17, 2025, with a tangible book value per share of $1.74 and a book value per share of $1.76 as of December 2024. A P/B ratio below 1 can sometimes suggest that the stock is undervalued relative to its assets.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:

As of December 31, 2024, LIQT's EV/EBITDA ratio is -1.8x. This negative value arises from negative earnings before interest, taxes, depreciation, and amortization (EBITDA) of -$9.488 million against an enterprise value of $16.737 million. Like the P/E ratio, a negative EV/EBITDA is difficult to interpret and suggests the company is not generating positive cash earnings.

Stock Price Trends:

LIQT's stock has experienced considerable volatility:

• 1-Month Change: 6.25%
• 6-Month Change: -33.77%
• Year-to-Date (YTD): -16.85%
• 1-Year Change: -43.12%
• 5-Year Change: -96.28%

The 52-week high is $3.20, while the 52-week low is $1.34, indicating significant price fluctuation over the past year. The current share price is around $1.54.

Dividend Yield and Payout Ratios:

LiqTech International, Inc. does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

The consensus among analysts is a 'Moderate Buy' or 'Buy' rating. The average 12-month price target from analysts is $3.20 to $4.70, suggesting a potential upside of over 102.53% to 212.50% from the current price. However, it’s essential to note that this is based on a small number of analysts (2), so it should be interpreted cautiously.

Additional Considerations:

• Revenue and Earnings Trends: In 2024, LiqTech International's revenue was $14.60 million, a -18.87% decrease compared to the previous year's $18.00 million. Losses were -$10.35 million, 20.7% more than in 2023.
• Analyst Ratings: Recent ratings show a positive shift. For instance, LIQT received an upgrade to a Zacks Rank #2 (Buy), driven by upward revisions in earnings estimates.
• Financial Health: Concerns exist regarding the company's cash runway, with less than 1 year of cash available.

Table of Key Valuation Metrics

Based on the data available, LiqTech International, Inc.'s valuation is complex. While the P/B ratio might suggest it is undervalued, negative P/E and EV/EBITDA ratios indicate underlying profitability challenges. Analyst ratings suggest potential upside, but investors should consider the risks and conduct thorough due diligence.

LiqTech International, Inc. (LIQT) Risk Factors

LiqTech International, Inc. (LIQT) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Investors need to consider these factors to make informed decisions.

Here's an overview of the key risks:

• Industry Competition: The filtration technology market is competitive. LiqTech faces competition from established players and new entrants, which could pressure pricing and market share.
• Regulatory Changes: Environmental regulations are constantly evolving. Changes in emission standards or water quality regulations could require LiqTech to adapt its technologies, potentially increasing costs.
• Market Conditions: Economic downturns or shifts in industrial production can affect the demand for LiqTech's products. A decrease in capital spending by key customers could reduce sales.

Recent filings and earnings reports highlight specific operational, financial, and strategic risks:

• Operational Risks: Manufacturing disruptions or quality control issues could lead to delays in product delivery and increased costs.
• Financial Risks: Fluctuations in raw material prices, especially for materials used in ceramic membranes, can impact profitability. Changes in currency exchange rates also pose a risk, as LiqTech operates internationally.
• Strategic Risks: The success of LiqTech depends on its ability to innovate and adapt to changing market needs. Failure to develop new products or enter new markets could limit growth potential.

Mitigation strategies and plans are crucial for managing these risks. While specific details may vary, common strategies include:

• Diversification: Expanding into new markets and applications can reduce reliance on specific industries or customers.
• Cost Management: Implementing efficient production processes and negotiating favorable contracts with suppliers can help control costs.
• Innovation: Investing in research and development to create new and improved products can maintain a competitive edge.
• Compliance: Staying informed about regulatory changes and ensuring compliance can avoid penalties and maintain market access.

For more insights into LiqTech's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of LiqTech International, Inc. (LIQT).

LiqTech International, Inc. (LIQT) Growth Opportunities

For LiqTech International, Inc. (LIQT), several factors could influence its future growth prospects. These encompass product innovations, expansion into new markets, strategic partnerships, and potential acquisitions.

Analyzing LiqTech International, Inc.'s growth drivers involves looking at several key areas:

• Product Innovations: Continued investment in developing and refining its silicon carbide (SiC) membrane technology for various filtration applications.
• Market Expansion: Identifying and penetrating new geographic markets or industries where its filtration solutions can be applied.
• Strategic Initiatives: Implementing strategies to improve operational efficiency, reduce costs, and enhance customer relationships.

To provide a clearer picture, let's consider potential future revenue growth projections and earnings estimates. Note that these figures are speculative and based on available information and industry trends.

• Revenue Growth Projections: Analysts’ consensus revenue estimate for 2024 is $20.24 million, which represents year-over-year growth of 23.57%.
• Earnings Estimates: The consensus EPS estimate for the current year is -$0.27.

Strategic initiatives and partnerships can significantly drive future growth for LiqTech International, Inc. (LIQT). These may include:

• Joint ventures to co-develop solutions for specific industries.
• Distribution agreements to expand market reach.
• Technology licensing to generate additional revenue streams.

LiqTech International, Inc. (LIQT) possesses several competitive advantages that could position it favorably for future growth:

• Proprietary Technology: Its silicon carbide (SiC) membrane technology offers unique performance characteristics.
• Established Market Presence: LiqTech International, Inc. (LIQT) has built relationships with key customers and partners.
• Scalable Business Model: The company can leverage its existing infrastructure and expertise to expand into new markets and applications.

Here is a SWOT analysis that outlines the strengths, weaknesses, opportunities, and threats for LiqTech International, Inc. (LIQT):

Understanding the company's Mission Statement, Vision, & Core Values of LiqTech International, Inc. (LIQT). is also crucial for investors.

Here’s a brief overview of LiqTech International, Inc.'s financial performance:

• Q1 2024 revenue increased by 11% year-over-year to $4.3 million.
• Gross margin improved to 31% in Q1 2024 from 23% in Q1 2023.
• Operating expenses decreased by $0.5 million compared to Q1 2023.