One-glance verdict
Overvalued
$0.26 our estimate vs market $0.67
Wall Street consensus: $1.30 (393.8% higher than our fair-value estimate)
156% above our estimate, beyond the bull case
Fundamentals snapshot
LiqTech International, Inc.
LIQT · NCM · Industrials · Pollution & Treatment Controls
Current price
$0.67
52-week range
$0.52 - $3.35
Market cap
$22.22M
Balance sheet
Healthy
-11.19x Concerning
Net cash $7.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -49.6% last year — the company lost money on shareholders' equity.
What this company does
LiqTech International, Inc.
LiqTech International makes and sells advanced ceramic filters that purify liquids and gases for industries like marine shipping and swimming pools. The company earns money not just from selling new systems but also from aftermarket sales (selling replacement parts and services after the initial purchase), which can provide a steady income stream. This matters because growing global regulations on pollution and water cleanliness could increase the need for their specialized cleaning technology.
How the company got here
Founded in 2000 in Denmark, LiqTech started by developing a new filtration technology using a material called silicon carbide. Early on, they focused on creating filters to clean the air by reducing soot from diesel engines. Over the years, the company expanded by acquiring other businesses, including a water solutions company in 2014 and a plastics manufacturer in 2019, to broaden its offerings. A major turning point was its listing on the Nasdaq stock exchange in 2019, which provided more visibility and access to funding. More recently, a new management team has been focusing the company on specific markets where its specialized filters can make the biggest impact.
What it actually does
LiqTech International is a clean technology company that creates highly specialized filters to purify liquids and gases. Think of them as making very advanced coffee filters, but instead of coffee grounds, they are designed to remove tiny, difficult particles like soot from exhaust or harmful contaminants from industrial wastewater. Their core technology uses a durable material called silicon carbide, which allows their filters to work in very harsh conditions where other filters might fail. The company sells everything from the filter components themselves to complete, ready-to-use filtration systems for large-scale operations like public swimming pools or manufacturing plants.
Systems and Aftermarket
This is the company's largest business area, where it sells complete, automated filtration systems to customers. Instead of just selling a filter, this division provides the whole setup—pumps, pipes, and controls—that makes the filtration process work for a specific need, like treating water for a large commercial swimming pool or cleaning wastewater from a factory. Customers in industries like marine, energy, and aquatics pay for these integrated systems to solve complex purification challenges. This segment also includes aftermarket sales, which means selling replacement parts and services for the systems it has already installed.
Filters and Membranes
This part of the business focuses on selling the core components of LiqTech's technology: the silicon carbide filters and membranes themselves. These are bought by customers who may be building their own filtration systems or need to replace filters in existing equipment. A key product here is the diesel particulate filter (DPF), which is used to capture soot from diesel engine exhaust to reduce air pollution. This segment represents a significant portion of the company's sales and is foundational to its other offerings.
Components
Through an acquisition, LiqTech has a business that manufactures custom plastic parts. This segment involves machining, welding, and bending plastics for various industrial uses, including parts for the food processing industry. While smaller than its filtration businesses, it provides an additional stream of revenue (the money a company receives from its business operations). This part of the company serves different customers who need specialized plastic components for their own products or machinery.
What management is betting on now
The company's leadership is currently focused on growing in more predictable and repeatable markets rather than relying on large, one-off projects. They are heavily targeting four key areas: commercial swimming pools, marine water treatment, industrial wastewater, and diesel particulate filters. A major priority is to increase sales in the commercial pool market, where they have seen record demand for their systems. Management also aims to improve the company's financial health by optimizing costs and working towards profitability, as stated in their guidance (a company's forecast of its future performance).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-2.11M
FY2024 Q4
$-2.40M
FY2025 Q1
$-1.46M
FY2025 Q2
$-1.67M
FY2025 Q3
$-1.20M
FY2025 Q4
$-2.30M
FY2026 Q1
$-2.21M
FY2026 Q2
$-3.10M
Revenue
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Net income
$-3.02M
Diluted EPS
—
Operating cash flow
$-3.10M
Free cash flow
$-3.10M
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Sources
Revenue
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Net income
$-2.71M
Diluted EPS
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Operating cash flow
$-1.94M
Free cash flow
$-2.21M
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Sources
Revenue
—
Net income
$-2.59M
Diluted EPS
—
Operating cash flow
$-2.13M
Free cash flow
$-2.30M
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Sources
Revenue
—
Net income
$-1.43M
Diluted EPS
—
Operating cash flow
$-1.07M
Free cash flow
$-1.20M
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Sources
Revenue
—
Net income
$-2.15M
Diluted EPS
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Operating cash flow
$-1.61M
Free cash flow
$-1.67M
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Sources
Revenue
—
Net income
$-2.35M
Diluted EPS
—
Operating cash flow
$-1.30M
Free cash flow
$-1.46M
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Sources
Revenue
—
Net income
$-3.00M
Diluted EPS
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Operating cash flow
$-2.01M
Free cash flow
$-2.40M
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Sources
Revenue
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Net income
$-2.84M
Diluted EPS
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Operating cash flow
$-1.75M
Free cash flow
$-2.11M
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Sources
Is it cheap or expensive?
Fair value $0.26 vs current price $0.67
Wall Street consensus is the average analyst price target: $1.30 (393.8% higher than our fair-value estimate).
Our most-likely fair value is $0.26 a share — about 61.0% below today's price of $0.67, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $7.6M - more cash than debt. Interest coverage -11.2x.
Net debt
$-7.56M
Interest coverage
-11.19x
LiqTech International, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
LIQT
BASELINE
LiqTech International, Inc.
Total debt $8.10M Interest coverage -11.19x This is the baseline the peer rows are being compared against.
What you should know
The case for and against LIQT
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -49.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-0.96x
P/B
0.86x
P/S
1.44x
EV/EBITDA
-2.03x
PEG ratio
0.80x
Profitability
How much profit each dollar creates
Gross margin
9.1%
Operating margin
-53.4%
Net margin
-63.2%
ROE
-49.6%
ROA
-15.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.31x
Current ratio
4.37x
Quick ratio
3.35x
Total debt
$8.10M
Total cash
$15.66M
Growth
How the business has been compounding
Revenue TTM
$11.34M
Revenue 5Y CAGR
-3.0%
EPS TTM
-0.91
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-8.24M
Free CF TTM
$-6.50M
FCF margin
-57.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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