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BK Technologies Inc (BKTI)
:BKTI
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BK Technologies
(NYSE MKT:BKTI)
Rating:78Outperform
Price Target:
$49.00
▲(15.48%Upside)
Positive Factors
Analyst Confidence
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.
BK Technologies (BKTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.30M
Dividend YieldN/A
Average Volume (3M)25.45K
Price to Earnings (P/E)16.7
Beta (1Y)0.42
Revenue Growth5.18%
EPS GrowthN/A
CountryUS
Employees113
SectorTechnology
Sector Strength84
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.68
Shares Outstanding3,673,594
10 Day Avg. Volume23,662
30 Day Avg. Volume25,450
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.79
Price to Sales (P/S)0.00
P/FCF Ratio-5.22
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit1.99
Enterprise Value/Ebitda1.86
Forecast
1Y Price Target
$55.00Price Target Upside29.63% 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 Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -7.09%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 with revenue growth, improved profitability, and a solid balance sheet. However, there are concerns about potential tariff impacts and increased SG&A expenses. Despite these challenges, the demand for the BKR 9000 and the positive outlook for federal orders contribute to an overall positive sentiment.Q1-2025 Updates
Positive Updates
Revenue Growth and Profitability
First quarter 2025 revenue was $19.1 million, a 4.5% increase year-over-year and a 6.3% increase sequentially. The company achieved net income of $2.1 million compared to $681,000 in the first quarter of 2024. Non-GAAP adjusted earnings were $2.6 million, up from $1.1 million in the same quarter last year.
Improved Gross Margin
Gross margin improved significantly to 47% in Q1 2025 from 34.5% in Q1 2024 and 41.2% in Q4 2024. This was driven by a shift to higher-margin products and a successful transition to contract manufacturing.
Continued Profitability and Strong Cash Position
BK Technologies achieved its seventh consecutive quarter of profitability, with a strong balance sheet showing $8.9 million in cash and no debt.
BKR 9000 Multiband Radio Demand
There is growing demand for the BKR 9000 multiband radio, which commands a higher price point and is expected to significantly increase revenue and gross margin.
Positive Order Outlook
Despite delays, federal funding was eventually signed, and increased orders from federal customers are expected.
Negative Updates
Tariff Challenges
The company faces potential tariff challenges with products manufactured in Vietnam and China, which could impact costs. A 10% tariff is currently affecting products from Vietnam, with a potential increase to 46% if a trade deal is not reached.
Seasonality and Delayed Federal Orders
Federal orders were delayed due to a late continuing resolution by Congress, which impacted Q1 results. This may affect the typical seasonality pattern.
SG&A Expenses Increase
Selling, general, and administrative expenses increased to approximately $6 million in Q1 2025 from $5.3 million in the same quarter last year, driven by investments in marketing and R&D.
Company Guidance
During the BK Technologies First Quarter 2025 Earnings Call, the company highlighted several key financial metrics and guidance. The first quarter revenue was $19.1 million, up year-over-year, with a gross margin improvement to 47%, compared to the previous year's 34.5%. Net income reached $2.1 million, or $0.55 per diluted share, while non-GAAP adjusted earnings were $2.6 million, or $0.68 per diluted share. The company maintains a target gross margin of at least 42% for the full year 2025. The backlog at the end of March 2025 stood at $18.8 million. BK Technologies also addressed potential tariff impacts, noting that approximately 95% of product revenue comes from manufacturing in the U.S.A., Mexico, and Vietnam, with the possibility of a 25% tariff on Mexican imports and a 10% to 46% tariff on Vietnamese imports if trade deals are not reached. Adjusted EBITDA for the quarter was $3.2 million, up from $1.4 million the previous year, and the company projects single-digit revenue growth with GAAP and non-GAAP EPS targets of over $2.40 and $2.80, respectively, for 2025.BK Technologies Financial Statement Overview
Summary
BK Technologies demonstrates solid financial health with impressive revenue and profit growth, strong margins, and efficient cash flow management. The balance sheet is well-structured with low leverage, contributing to the company's financial stability and resilience in the Communication Equipment industry.Income Statement
BK Technologies shows strong income statement performance with consistent revenue growth from $44.1 million in 2020 to $77.4 million in TTM (Trailing-Twelve-Months). Gross profit margins are healthy at 40.97% (TTM), indicating good cost control. The net profit margin improved significantly, reaching 12.67%, reflecting profitability improvements. EBIT and EBITDA margins are also positive, signaling operational efficiency gains.85
Very Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.04 (TTM), reflecting low leverage risk. Return on Equity (ROE) is strong at 30.31% (TTM), indicating efficient use of equity. The equity ratio stands at 57.72% (TTM), suggesting a stable financial structure with substantial equity backing.75
Positive
Cash Flow
Cash flow generation is strong with significant free cash flow growth, rising from negative in 2022 to $13.04 million in TTM. Operating cash flow to net income ratio is 1.46 (TTM), indicating solid cash conversion. Free cash flow to net income ratio is 1.33 (TTM), highlighting effective cash management.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 77.42M | 76.59M | 74.09M | 50.95M | 45.36M | 44.14M | Gross Profit |
| 31.71M | 29.05M | 22.24M | 9.84M | 16.26M | 18.08M | EBIT |
| 9.76M | 7.83M | -777.00K | -11.08M | -1.20M | 324.00K | EBITDA |
| 11.44M | 9.33M | 34.00K | -10.07M | 198.00K | 2.34M | Net Income Common Stockholders |
| 9.81M | 8.36M | -2.23M | -12.35M | -1.70M | 194.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.92M | 7.08M | 3.46M | 1.92M | 10.58M | 6.83M | Total Assets |
| 56.07M | 51.50M | 49.41M | 48.83M | 50.38M | 37.49M | Total Debt |
| 1.15M | 1.28M | 8.33M | 8.73M | 5.06M | 3.56M | Net Debt |
| -7.78M | -5.79M | 4.88M | 6.81M | -5.52M | -3.27M | Total Liabilities |
| 23.70M | 21.67M | 28.10M | 28.70M | 17.77M | 14.97M | Stockholders Equity |
| 32.37M | 29.83M | 21.31M | 20.14M | 32.62M | 22.52M |
| Cash Flow | Free Cash Flow | ||||
| 13.04M | 10.21M | -462.00K | -10.75M | -8.72M | 3.50M | Operating Cash Flow |
| 14.33M | 11.44M | 1.66M | -9.00M | -6.30M | 4.44M | Investing Cash Flow |
| -1.29M | -1.24M | -2.12M | -1.75M | -2.34M | -946.00K | Financing Cash Flow |
| -7.42M | -6.59M | 2.00M | 2.09M | 12.40M | -1.35M |
BK Technologies Technical Analysis
Neutral
42.43
Price Trends
43.62
Negative
37.55
Positive
32.94
Positive
Market Momentum
-0.05
Positive
46.30
Neutral
27.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKTI, the sentiment is Neutral. The current price of 42.43 is below the 20-day moving average (MA) of 44.32, below the 50-day MA of 43.62, and above the 200-day MA of 32.94, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 27.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $157.30M | 16.65 | 36.41% | ― | 5.18% | ― | |
76 Outperform | $181.24M | 7.78 | 52.23% | 5.34% | 24.10% | 603.04% | |
71 Outperform | $217.66M | 9.36 | 15.02% | ― | 11.94% | 377.86% | |
62 Neutral | $11.93B | 10.60 | -7.51% | 3.00% | 7.40% | -8.09% | |
56 Neutral | $113.91M | 21.70 | 111.75% | ― | 1.60% | ― | |
51 Neutral | $101.72M | ― | -6.78% | ― | -14.38% | 49.11% | |
50 Neutral | $61.14M | ― | -43.88% | ― | -12.02% | -615.33% |
* Technology Sector Average
Performance Comparison
BKTI
BK Technologies
42.43
29.19
220.47%
CRNT
Ceragon Networks
2.40
-0.13
-5.14%
CMTL
Comtech Telecommunications
2.18
0.06
2.83%
FEIM
Frequency Electronics
18.62
9.91
113.78%
KVHI
KVH Industries
5.14
0.21
4.26%
INSG
Inseego
7.33
-0.98
-11.79%
BK Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
BK Technologies Reports Q1 2025 Financial Results
Positive
May 13, 2025
BK Technologies reported its financial results for the first quarter of 2025, showing a 4.5% increase in revenue to $19.1 million and a significant improvement in gross margin to 47.0%, compared to the same period in 2024. The company attributed these improvements to a favorable product sales mix and its transition to East West Manufacturing. Despite light federal orders due to a delayed government funding resolution, BK Technologies expects increased federal order activity following the resolution’s signing. The company remains optimistic about its revenue growth and shareholder value in 2025, reiterating its full-year earnings expectations.
The most recent analyst rating on (BKTI) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on BK Technologies stock, see the BKTI Stock Forecast page.
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.