BK Technologies (BKTI) AI Stock Analysis

• Market Cap: $291.75M
• Dividend Yield: N/A
• Average Volume (3M): 47.25K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.77
• Revenue Growth: 10.12%
• EPS Growth: 153.04%
• Country: US
• Employees: 113
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.27
• Shares Outstanding: 3,732,241
• 10 Day Avg. Volume: 41,580
• 30 Day Avg. Volume: 47,250
• PEG Ratio: -0.03
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 11.93
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: 19.88
• 1Y Price Target: $97.00
• Price Target Upside: 30.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.8
• Revenue Forecast (FY): $83.52M

• Rating: 77 Outperform
• Price Target: $75.00 ▲(1.15% Upside)

BK Technologies' strong financial performance and positive earnings call are the primary drivers of its stock score. While technical analysis presents mixed signals, the company's robust guidance and strategic initiatives provide a positive outlook. Valuation is moderate, reflecting a balanced risk-reward profile.

Positive Factors

Revenue Growth

The significant revenue growth, driven by strong federal orders, indicates robust demand and strengthens BK Technologies' market position in the public safety sector.

Cash Position

A strong cash position with no debt enhances financial flexibility, enabling BK Technologies to invest in growth opportunities and withstand economic uncertainties.

Product Innovation

The success of the BKR 9000 multiband radio reflects BK Technologies' ability to innovate and meet market needs, supporting long-term competitive advantage.

Negative Factors

Increased SG&A Expenses

Rising SG&A expenses can pressure margins and reduce profitability, potentially impacting BK Technologies' ability to maintain cost efficiency.

Federal Government Shutdown Impact

The federal government shutdown poses risks to revenue continuity, as delays in shipments can affect cash flow and order fulfillment.

Tariff Exposure

Tariff exposure in Asia can increase costs and affect profitability, challenging BK Technologies' ability to maintain competitive pricing.

BK Technologies Business Overview & Revenue Model

Company Description

BK 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 Money

BK Technologies generates revenue primarily through the sale of its communication equipment and systems, which includes LMR radios, accessories, and related infrastructure. The company earns significant income from both direct sales to end-users and through partnerships with distributors and resellers. Additionally, BKTI benefits from recurring revenue streams through maintenance contracts, repair services, and software updates for its products. Strategic partnerships with government agencies and large enterprises also contribute to its earnings, as these relationships often lead to long-term contracts and bulk purchasing agreements.

BK Technologies Financial Statement Overview

Summary

BK Technologies exhibits strong financial performance with robust revenue growth and improved profitability. The balance sheet shows low leverage and high return on equity, indicating financial stability. The cash flow statement highlights efficient cash generation and management.

Income Statement

BK Technologies has shown strong revenue growth with a 5.4% increase in the TTM period. The company has improved its profitability significantly, with a gross profit margin of 43.7% and a net profit margin of 15.2%. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. The consistent revenue growth and improved margins highlight a positive trajectory in the company's income statement.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.041, indicating low leverage. The return on equity is impressive at 38.1%, showcasing efficient use of equity to generate profits. The equity ratio stands at 61.2%, suggesting a stable financial structure. Overall, the balance sheet is robust, with low financial risk and high profitability.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 39.3% in the TTM period. The operating cash flow to net income ratio is strong at 0.91, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also high at 0.91, reflecting solid cash flow management. The cash flow statement demonstrates strong liquidity and cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.56M	76.59M	74.09M	50.95M	45.36M	44.14M
Gross Profit	38.55M	29.05M	22.24M	9.84M	16.26M	18.03M
EBITDA	15.75M	9.33M	34.00K	-10.07M	198.00K	2.34M
Net Income	12.97M	8.36M	-2.23M	-11.63M	-1.70M	194.00K
Balance Sheet
Total Assets	66.86M	51.50M	49.41M	48.83M	50.38M	38.59M
Cash, Cash Equivalents and Short-Term Investments	21.47M	7.08M	3.46M	1.92M	10.58M	6.83M
Total Debt	861.00K	1.28M	8.33M	8.73M	5.06M	3.56M
Total Liabilities	25.91M	21.67M	28.10M	28.70M	17.77M	14.97M
Stockholders Equity	40.95M	29.83M	21.31M	20.14M	32.62M	23.63M
Cash Flow
Free Cash Flow	18.43M	10.21M	-462.00K	-10.75M	-8.72M	3.50M
Operating Cash Flow	19.67M	11.44M	1.66M	-9.00M	-6.30M	4.44M
Investing Cash Flow	-2.76M	-1.24M	-2.12M	-1.75M	-2.34M	-946.00K
Financing Cash Flow	387.00K	-6.59M	2.00M	2.09M	12.40M	-1.35M

BK Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 74.15 is above the 20-day moving average (MA) of 66.79, above the 50-day MA of 70.55, and above the 200-day MA of 53.91, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 58.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKTI.

BK Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	77 Outperform	$291.75M	22.43	38.74%	―	10.12%	153.04%
FEIM	76 Outperform	$348.44M	15.26	44.70%	―	18.30%	262.72%
AVNW	66 Neutral	$273.05M	20.40	5.24%	―	10.89%	―
AUDC	65 Neutral	$264.39M	20.28	7.67%	4.19%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNT	49 Neutral	$186.56M	135.53	0.84%	―	-3.78%	-92.62%
INSG	47 Neutral	$187.00M	―	―	―	-17.45%	76.52%

BK Technologies Corporate Events

BK Technologies Reports Strong Q3 2025 Financial Results

BK Technologies reported a strong financial performance for the third quarter of 2025, with a 21% increase in revenue to $24.4 million and a 46% rise in net income to $3.4 million compared to the same period in 2024. The company attributes its success to robust federal order activity, particularly from the USDA Forest Service, and increased market recognition for its BKR 9000 multiband radio. The company ended the quarter with a record cash balance and no debt, reflecting its asset-light model and strong operating leverage. BK Technologies remains confident in meeting its full-year 2025 guidance, emphasizing its financial strength and strategic focus on product innovation and partnerships to enhance its competitive position in the public safety communications market.

BK Technologies Amends Credit Agreement with Fifth Third Bank

On October 30, 2025, BK Technologies, Inc., a subsidiary of BK Technologies Corporation, amended its Credit Agreement with Fifth Third Bank. The amendment removes the borrowing base requirement, increases potential borrowing capacity to $14 million, extends the maturity date to 2028, and adjusts interest rates based on debt coverage ratios. Additionally, RELM Communications, Inc. was released from its guarantor obligations.

BK Technologies Investigates IT Security Breach Incident

On or about September 20, 2025, BK Technologies Corporation detected potentially suspicious activity in its IT systems, leading to an investigation and remediation efforts with external cybersecurity advisors. The incident caused minor disruptions to non-critical systems, but operations continued largely unaffected. The company believes the unauthorized third-party has been removed, although non-public information, including employee records, may have been accessed. BK Technologies has notified law enforcement and plans to inform affected parties and regulatory agencies. The company expects insurance to cover a significant portion of the incident’s costs and does not foresee a material impact on its financial condition.