NasdaqCM:LIQT

Stock Analysis Report

Executive Summary

LiqTech International, Inc., a clean technology company, provides technologies for gas and liquid purification by manufacturing ceramic silicon carbide filters.

Rewards

Trading at 89.1% below its fair value

Earnings are forecast to grow 80.41% per year

Earnings have grown 2.3% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with high growth potential.

Share Price & News

How has LiqTech International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIQT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

LIQT

-1.6%

US Machinery

0.06%

US Market


1 Year Return

-20.6%

LIQT

10.0%

US Machinery

19.4%

US Market

Return vs Industry: LIQT underperformed the US Machinery industry which returned 10% over the past year.

Return vs Market: LIQT underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

LIQTIndustryMarket
7 Day-5.7%-1.6%0.06%
30 Day0.3%-2.6%1.1%
90 Day38.2%2.2%8.9%
1 Year-20.6%-20.6%12.0%10.0%21.9%19.4%
3 Year246.3%246.3%36.7%28.1%48.9%39.3%
5 Year52.1%52.1%61.6%42.6%71.9%53.1%

Price Volatility Vs. Market

How volatile is LiqTech International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LiqTech International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LIQT ($6.51) is trading below our estimate of fair value ($59.45)

Significantly Below Fair Value: LIQT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LIQT is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: LIQT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIQT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIQT is overvalued based on its PB Ratio (5.7x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is LiqTech International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

80.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LIQT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: LIQT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LIQT's is expected to become profitable in the next 3 years.

Revenue vs Market: LIQT's revenue (43.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LIQT's revenue (43.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LIQT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LiqTech International performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIQT is currently unprofitable.

Growing Profit Margin: LIQT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LIQT is unprofitable, but has reduced losses over the past 5 years at a rate of 2.3% per year.

Accelerating Growth: Unable to compare LIQT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LIQT is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (1.5%).


Return on Equity

High ROE: LIQT has a negative Return on Equity (-1.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LiqTech International's financial position?


Financial Position Analysis

Short Term Liabilities: LIQT's short term assets ($27.9M) exceed its short term liabilities ($10.3M).

Long Term Liabilities: LIQT's short term assets ($27.9M) exceed its long term liabilities ($2.4M).


Debt to Equity History and Analysis

Debt Level: LIQT is debt free.

Reducing Debt: LIQT has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.


Balance Sheet

Inventory Level: LIQT has a high level of physical assets or inventory.

Debt Coverage by Assets: LIQT's debt is covered by short term assets (assets are 6.2881946646325E+16x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LIQT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LIQT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is LiqTech International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LIQT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LIQT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LIQT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LIQT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LIQT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Sune Mathiesen (44yo)

5.6yrs

Tenure

US$366,054

Compensation

Mr. Sune Mathiesen serves as the Chief Executive Officer of Provital Solutions A/S. Mr. Mathiesen has been the Chief Executive Officer of LiqTech International, Inc. since July 29, 2014 and served as its C ...


CEO Compensation Analysis

Compensation vs Market: Sune's total compensation ($USD366.05K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Sune's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sune Mathiesen
CEO & Director5.6yrsUS$366.05kno data
Claus Toftegaard
CFO & Principal Accounting Officer1.5yrsUS$192.54k0.0073% $9.5k
Paw Juul
Chief Operating Officer0yrsno datano data
Kenneth Johansen
Vice President of Sales0yrsno datano data
Donald Debelak
Chief Executive Officer of Liqtech North America Inc5.8yrsUS$144.00kno data
Karsten Hansen
Plant Manager0yrsno datano data

5.6yrs

Average Tenure

54yo

Average Age

Experienced Management: LIQT's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sune Mathiesen
CEO & Director5.6yrsUS$366.05kno data
Peter Leifland
Independent Director0.9yrsno datano data
Alexander Buehler
Independent Director2.5yrsUS$35.00k0.16% $211.0k
Mark Vernon
Chairman of the Board1.6yrsUS$67.50k0.92% $1.2m
Peyton Boswell
Independent Director2.5yrsUS$25.00k0.18% $237.4k

2.5yrs

Average Tenure

48yo

Average Age

Experienced Board: LIQT's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 34.5%.


Top Shareholders

Company Information

LiqTech International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LiqTech International, Inc.
  • Ticker: LIQT
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$130.067m
  • Shares outstanding: 20.55m
  • Website: https://www.liqtech.com

Number of Employees


Location

  • LiqTech International, Inc.
  • Industriparken 22C
  • Ballerup
  • Capital Region of Denmark
  • 2750
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LIQTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2011
39JDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2011

Biography

LiqTech International, Inc., a clean technology company, provides technologies for gas and liquid purification by manufacturing ceramic silicon carbide filters. The company manufactures and sells ceramic silicon carbide membranes and systems for liquid filtration under the LiqTech, Cometas, and Provital brand names, which are used for the filtration of produced water, pre-filtration of reverse osmosis drinking water, industrial applications, producing clean drinking water, and pool and spa water, as well as marine scrubber bleed water. It also offers diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market; and kiln furniture to support ceramics that create additional space to maximize the number of items for each firing. LiqTech International, Inc. sells its products primarily to industrial customers in the United States, Canada, Europe, Asia, South America, and Australia. 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 2004 and is headquartered in Ballerup, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 00:55
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.