BK Technologies (BKTI) AI Stock Analysis

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BK Technologies

(NYSE MKT:BKTI)

73Outperform

BK Technologies is positioned well with robust financial performance and positive technical indicators. The strong earnings call highlighted growth and positive future guidance, although macroeconomic uncertainties and tariff challenges pose potential risks. The stock is moderately valued, aligning with industry norms and its growth trajectory. These factors collectively result in a solid overall stock score.

Positive Factors

Analyst Recommendations

Analyst initiates coverage with a Buy rating and a $40 price target, indicating confidence in future growth opportunities.

Financial Performance

BK Technologies reported revenue, AEBITDA, and EPS above estimates, driven by strong market acceptance and sales momentum for the BKR 9000.

Market Expansion

The introduction of the BKR 5000 and BKR 9000 radios expanded BK Technologies' total addressable market from $200M to $2.3B.

Negative Factors

Leadership 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

$164.39M

Dividend YieldN/A

Average Volume (3M)46.29K

Price to Earnings (P/E)20.8

Beta (1Y)0.39

Revenue Growth3.37%

EPS GrowthN/A

CountryUS

Employees113

SectorTechnology

Sector Strength44

IndustryCommunication Equipment

Share Statistics

EPS (TTM)2.21

Shares Outstanding3,573,027

10 Day Avg. Volume61,683

30 Day Avg. Volume46,292

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

$51.00

Price Target Upside22.36% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

BK Technologies Business Overview & Revenue Model

Company DescriptionBK Technologies (BKTI) is a communications technology company that specializes in the design, manufacture, and distribution of two-way radio communications equipment. It serves sectors including public safety, government agencies, and industrial markets, providing reliable, high-performance communication solutions. BK Technologies is known for its dependable portable and mobile radios, which are used by first responders and professionals who require robust communication tools in critical situations.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price41.68

Price Trends

50DMA

34.41

Positive

100DMA

34.13

Positive

200DMA

27.87

Positive

Market Momentum

MACD

3.21

Negative

RSI

59.74

Neutral

STOCH

66.66

Neutral

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 41.68 is above the 20-day moving average (MA) of 40.51, above the 50-day MA of 34.41, and above the 200-day MA of 27.87, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 66.66 is Neutral, 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 (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEIM	76 Outperform	$172.63M	7.41	52.23%	6.04%	24.10%	603.04%
BKTI	73 Outperform	$164.39M	20.77	32.69%	―	3.37%	―
CRNT	65 Neutral	$183.90M	7.61	16.02%	―	13.54%	278.70%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
KVHI	48 Neutral	$96.05M	―	-7.73%	―	-14.33%	29.34%
INSG	48 Neutral	$104.29M	118.80	111.75%	―	5.41%	―
CMTL	42 Neutral	$36.68M	―	-53.44%	―	-13.06%	-465.17%

* Technology Sector Average

Performance Comparison

BKTI

BK Technologies

45.13

31.45

229.90%

CRNT

Ceragon Networks

2.07

-0.64

-23.62%

CMTL

Comtech Telecommunications

1.35

-0.40

-22.86%

FEIM

Frequency Electronics

18.03

9.13

102.58%

KVHI

KVH Industries

4.86

0.05

1.04%

INSG

Inseego

7.91

4.68

144.89%

BK Technologies Earnings Call Summary

Earnings Call Date: Mar 27, 2025 | % Change Since: 42.40% | 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.