Quant Snapshot: Bioteq Environmental (TSXV:BQE)

Vancouver’s Bioteq Environmental (TSXV:BQE), which has been working with water treatment technologies since 1998, has a pitch that is hard for many of the world’s larger mining companies and utility operators to refuse. In an increasingly regulated environment, Bioteq has developed a sulphide based process that recovers metals and leaves behind clean water. Old sulphate based treatment systems can’t do this. What’s more, the recovered metals from Bioteq’s processes are byproducts that can be sold to offset the cost of water treatment. In a result that surely wasn’t typical, a Japanese wastewater treatment plant in Nagano reported it had recovered 66 ounces of gold per tonne from incinerated sludge. In 2009, BioteQ treated 7.25 billion litres of wastewater, and removed 2.2 million pounds of metal contaminants from the environment. With just over $6 million in revenue last year, Bioteq is small, but has grown steadily and has an ambitious slate of projects coming online. With the Company’s recent quarterly revenues ramping up, we break down the numbers in an updated Quant Snapshot.

1. Price to sales: 5.96 x Sales

As of June 30th, 2010 (Q2, 2010) Bioteq had 69.86 million shares
outstanding.The price as of October 6, 2010 was $.75. This gives The Company a market capitalization of $52.2 million. In the trailing four quarters, sales totaled $8.75 million.

2. Cash to Market Cap: 17.9%

As of Q2, 2010, Bioteq’s reported cash and short term investments was $9.36 million. The Company’s Market Cap, as of October 6th was $52.2 million.

3. Debt to market Cap: 0

As of June 30th, 2010 (Q2, 2010) Bioteq had no Long Term Debt.

4. Trailing Three year growth rate: 17.4%

Bioteq’s sales were $4.52 million in 2006. Sales grew to $6.39 million
in 2009.

5. Enterprise Value to Sales: 4.9 x Sales

Enterprise Value as of Q2, 2010 is $42.84 million, based on a
market cap of $52.2 million plus long term debt of zero, minus cash
and short term investments of of $9.36 million. Sales for the trailing four quarters totaled $8.75 million.

All financial information about Bioteq is gleaned from
their filings with the System for Electronic Document Analysis and
Retrieval (SEDAR)
All calculations are based on The Company’s closing share price as of
close October 6th, 2010: $.75
Sales from trailing four quarters: $8.75 million
Cash and short term investments as of June 30, 2010 (Q2, 2010): $9.36 million
Shares outstanding: 69.86 million.