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BK Technologies Inc (BKTI)
:BKTI
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BK Technologies
(NYSE MKT:BKTI)
74Outperform
Positive Factors
Market Expansion
The introduction of the BKR 5000 and BKR 9000 radios expanded BK Technologies' total addressable market from $200M to $2.3B.
Revenue and Earnings Growth
BK Technologies is positioned to see revenue accelerate and earnings expand as it continues to progress towards its goal of $100M in revenue and $20M in AEBITDA.
Negative Factors
Management Changes
Since 2021, the company has appointed a new CEO, a new CFO, and five of seven board members are new.
Manufacturing Transition
BK Technologies announced a manufacturing agreement to transition its activities, with expectations that the full benefit of this move will be seen soon.
BK Technologies (BKTI) vs. S&P 500 (SPY)
Market Cap
$140.13M
Dividend YieldN/A
Average Volume (3M)23.31K
Price to Earnings (P/E)17.7
Beta (1Y)0.80
Revenue Growth3.37%
EPS GrowthN/A
CountryUS
Employees145
SectorTechnology
Sector Strength43
IndustryCommunication Equipment
Share Statistics
EPS (TTM)2.21
Shares Outstanding3,573,027
10 Day Avg. Volume29,646
30 Day Avg. Volume23,306
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.52
Price to Cash Flow (P/CF)5.30
P/FCF Ratio5.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.00Price Target Upside1.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
BK Technologies Business Overview & Revenue Model
Company DescriptionBK Technologies Corporation, through its subsidiary, BK Technologies, Inc., engages in design, manufacture, and markets wireless communications products in the United States and internationally. The company offers two-way land mobile radios (LMR), repeaters, base stations, and related components and subsystems. Its BK Technologies, BKR, and BK Radio branded products include LMR equipment for professional radio users primarily in government, public safety, and military applications, as well as P-25 digital products; and RELM branded products provide two-way communications for commercial and industrial concerns, such as hotels, construction firms, schools, and transportation services. The company was incorporated in 1997 and is headquartered in West Melbourne, Florida.
How the Company Makes MoneyBK Technologies generates revenue primarily through the sale of its two-way radio communication products. These products are sold to a diverse customer base, including government agencies, public safety entities, and industrial companies that require effective communication solutions. The company earns money by offering both portable and mobile radio units, along with related accessories and support services. Key revenue streams include direct sales to end-users, as well as through distributors and resellers. BK Technologies may also benefit from long-term contracts with significant clients, ensuring recurring revenue from maintenance and service agreements.
BK Technologies Financial Statement Overview
Summary
BK Technologies shows strong financial performance with improved income, balance sheet, and cash flow metrics. The company has achieved positive net profit margins and strong cash generation, although a decline in stockholders' equity could be a concern if it continues.Income Statement
BK Technologies has shown a significant improvement in its income statement metrics. The TTM gross profit margin stands at 37.92%, reflecting a solid cost management strategy. The net profit margin has also turned positive to 10.91%, demonstrating strong profitability. Revenue growth from the previous year is 3.37%, indicating moderate growth. The EBIT and EBITDA margins have improved to 10.22% and 12.37% respectively, pointing to enhanced operational efficiency.75
Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.04, suggesting low leverage risk. The return on equity is strong at 28.02%, indicating efficient use of equity capital. The equity ratio is 57.93%, demonstrating a solid capital structure. However, the company's stockholders' equity has declined compared to previous years, which could be a concern if the trend continues.70
Positive
Cash Flow
BK Technologies exhibits robust cash flow metrics with a significant improvement in operating cash flow to net income ratio at 1.37, indicating strong cash generation relative to net income. The free cash flow has grown substantially, resulting in a positive free cash flow to net income ratio of 1.22. This highlights the company's ability to generate cash efficiently, supporting reinvestment and debt repayment.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 76.59M | 74.09M | 50.95M | 45.36M | 44.14M | 40.10M | Gross Profit |
| 29.05M | 22.24M | 9.84M | 16.26M | 18.08M | 15.65M | EBIT |
| 7.83M | -777.00K | -11.08M | -1.20M | 324.00K | -4.38M | EBITDA |
| 9.47M | 34.00K | -10.07M | 198.00K | 2.34M | -3.17M | Net Income Common Stockholders |
| 8.36M | -2.23M | -12.35M | -1.70M | 194.00K | -2.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.68M | 3.46M | 1.92M | 10.58M | 6.83M | 4.68M | Total Assets |
| 32.19M | 49.41M | 48.83M | 50.38M | 37.49M | 37.94M | Total Debt |
| 0.00 | 8.33M | 8.73M | 5.06M | 3.56M | 3.38M | Net Debt |
| -5.68M | 4.88M | 6.81M | -5.52M | -3.27M | -1.29M | Total Liabilities |
| 3.30M | 28.10M | 28.70M | 17.77M | 14.97M | 14.66M | Stockholders Equity |
| 28.88M | 21.31M | 20.14M | 32.62M | 22.52M | 23.28M |
| Cash Flow | Free Cash Flow | ||||
| 10.21M | -462.00K | -10.75M | -8.72M | 3.50M | -4.94M | Operating Cash Flow |
| 11.44M | 1.66M | -9.00M | -6.30M | 4.44M | -2.49M | Investing Cash Flow |
| -1.24M | -2.12M | -1.75M | -2.34M | -946.00K | -2.46M | Financing Cash Flow |
| -6.59M | 2.00M | 2.09M | 12.40M | -1.35M | -1.65M |
BK Technologies Technical Analysis
Positive
39.46
Price Trends
31.58
Positive
32.41
Positive
25.66
Positive
Market Momentum
1.43
Negative
68.75
Neutral
82.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKTI, the sentiment is Positive. The current price of 39.46 is above the 20-day moving average (MA) of 31.07, above the 50-day MA of 31.58, and above the 200-day MA of 25.66, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKTI.
BK Technologies Risk Analysis
BK Technologies disclosed 30 risk factors in its most recent earnings report. BK Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BK Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $140.13M | 17.70 | 32.69% | ― | 3.37% | ― | |
66 Neutral | $70.08M | 17.94 | 7.61% | ― | 15.63% | 64.98% | |
60 Neutral | $158.51M | 345.51 | 0.30% | 2.69% | -10.16% | -94.32% | |
59 Neutral | $419.99M | ― | -3.20% | ― | -22.61% | -173.59% | |
57 Neutral | $20.89B | 10.40 | -13.99% | 2.52% | 4.47% | -23.34% | |
49 Neutral | $16.62M | ― | -153.37% | ― | -6.17% | 8.27% | |
44 Neutral | $46.95M | ― | -53.44% | ― | -13.06% | -465.17% |
* Technology Sector Average
Performance Comparison
BKTI
BK Technologies
39.46
23.63
149.27%
CLFD
Clearfield
29.25
-0.42
-1.42%
CMTL
Comtech Telecommunications
1.55
-1.51
-49.35%
IRIX
Iridex
0.99
-2.10
-67.96%
RELL
Richardson Electronics
10.89
1.78
19.54%
CODA
Coda Octopus Group
6.47
-0.05
-0.77%
BK Technologies Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 34.81% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and profitability growth, driven by strong market performance and strategic product launches. However, macroeconomic uncertainties and potential tariff impacts pose challenges. The company is positioned for continued growth but faces potential headwinds from external economic factors.Highlights
Revenue and Profit Growth
Revenue increased 9.9% to $17.9 million in Q4 2024. Full year revenue was $76.6 million, exceeding the initial target of $74 million. Gross margin improved to 41.2% in Q4 and 37.9% for the full year, surpassing the 35% target.
Earnings Per Share Surge
Fully diluted GAAP EPS increased to $0.93 in Q4 2024, including a $0.37 noncash benefit. Non-GAAP adjusted EPS was $0.61 in Q4, significantly higher than $0.20 in the previous year. Full year non-GAAP adjusted EPS was $2.30, exceeding the revised target of $1.92.
Backlog and Market Momentum
The backlog increased to $21.8 million at the end of 2024, up by $5.8 million from the previous year. The BKR 9000 product showed strong market momentum, particularly in state and local markets.
Strong Balance Sheet
Cash and cash equivalents were $7.1 million with no debt. Working capital improved to $23 million, and shareholders' equity increased to $29.8 million at the end of 2024.
BKR 9000 and New Product Development
The BKR 9000 is gaining traction in the state and local market, expected to drive further growth. Development of the BKR 9500 is underway, expected to generate revenue by 2027.
Lowlights
Macroeconomic Uncertainty
The macroeconomic environment remains uncertain, particularly with potential tariff impacts that could affect product costs and profitability.
Federal Government Sales Decline
Revenue from the federal government is expected to decline from 49% in 2023 to 35% in 2025 due to changes at the federal level and a shift towards state and local markets.
Tariff Challenges
Potential tariffs could significantly impact product costs. The company is considering options like relocating manufacturing to mitigate these effects, which could take 6-9 months.
Company Guidance
During the fourth quarter and full year 2024, BK Technologies demonstrated strong financial performance and exceeded expectations with a revenue increase of 9.9% to $17.9 million in Q4, contributing to a full-year revenue of $76.6 million. The company achieved a gross margin of 41.2% in Q4 and 37.9% for the full year, surpassing their initial target of 35%. BK Technologies reported a significant rise in fully diluted GAAP EPS to $0.93, including a $0.37 one-time noncash benefit from deferred tax asset provisions, and a non-GAAP adjusted EPS of $0.61 per diluted share for Q4. For the full year, non-GAAP adjusted earnings per share reached $2.30, exceeding the revised target of $1.92. The company closed the year with a backlog of $21.8 million and plans for single-digit revenue growth and a gross margin exceeding 42% in 2025. They also aim for a 2025 full-year GAAP diluted EPS in excess of $2.40 and non-GAAP diluted adjusted EPS over $2.80, driven by the momentum of the BKR 9000 and strategic investments in sales, marketing, and R&D.BK Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
BK Technologies Reports Strong 2024 Financial Results
Positive
Mar 27, 2025
BK Technologies announced its financial results for the fourth quarter and full year 2024, showing significant revenue growth, improved margins, and increased profitability compared to the previous year. The company reported a 9.9% increase in fourth-quarter revenue and a full-year revenue of $76.6 million, with a notable improvement in gross margins. The BKR 9000 radio saw strong market acceptance, contributing to the company’s success. BK Technologies is strategically investing in sales, marketing, and engineering to further expand its market presence and enhance its software capabilities, aiming for continued growth in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.