BK Technologies (BKTI) AI Stock Analysis

• Market Cap: $252.55M
• Dividend Yield: N/A
• Average Volume (3M): 74.87K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.61
• Revenue Growth: 4.63%
• EPS Growth: 328.61%
• Country: US
• Employees: 113
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): 1.30
• Shares Outstanding: 3,733,664
• 10 Day Avg. Volume: 118,070
• 30 Day Avg. Volume: 74,872
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $74.00
• Price Target Upside: 10.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $74.00 ▲(10.12% Upside)

BK Technologies receives a strong overall score driven by robust financial performance and positive earnings call highlights. The stock's technical indicators suggest bullish momentum, although caution is warranted due to overbought signals. Valuation is moderate, with no dividend yield to attract income investors. Overall, the company is well-positioned for future growth, supported by strategic initiatives and strong market demand.

Positive Factors

Analyst Coverage

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

Earnings 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

Management Changes

Since 2021, the Company has appointed a new CEO, a new CFO, and five of seven board members are new.

Strategic 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 Business Overview & Revenue Model

Company Description

BK Technologies (BKTI) is a leading provider of advanced communications solutions, primarily focusing on the public safety and critical communications sectors. The company specializes in the design, manufacture, and sale of ruggedized two-way radios and related accessories, ensuring reliable communication for first responders and other critical users. With a commitment to innovation, BK Technologies also offers integrated communication systems that enhance operational effectiveness in challenging environments.

How the Company Makes Money

BK Technologies generates revenue primarily through the sale of its two-way radio products and communication systems to government agencies, public safety organizations, and commercial customers. The company's revenue model is largely based on direct sales and government contracts, often involving multi-year agreements that provide a steady stream of income. Key revenue streams include the sale of hardware, software solutions, and maintenance services. Additionally, BKTI benefits from partnerships with other technology firms and agencies that enhance its market reach and product offerings, contributing significantly to its earnings.

BK Technologies Financial Statement Overview

Summary

BK Technologies exhibits strong financial health with significant revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid with low leverage, and the company effectively converts earnings into cash. While operational efficiency could be improved, the overall financial position is strong, positioning BK Technologies well for future growth.

Income Statement

BK Technologies has demonstrated strong revenue growth with a TTM revenue growth rate of 17.7%. The gross profit margin has improved to 43.7% in the TTM, indicating efficient cost management. The net profit margin is healthy at 15.2%, reflecting strong profitability. However, the EBIT margin is slightly lower at 9.8%, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.027, indicating prudent financial leverage. Return on equity is robust at 38.1%, showcasing effective use of equity capital. The equity ratio stands at 60.8%, reflecting a solid capital structure. Overall, the balance sheet is strong, with minimal leverage risk.

Cash Flow

BK Technologies has shown impressive free cash flow growth of 144.2% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.91, indicating efficient conversion of income into cash. The free cash flow to net income ratio is also strong at 0.91, underscoring the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.33M	76.59M	74.09M	50.95M	45.36M	44.14M
Gross Profit	34.20M	29.05M	22.24M	9.84M	16.26M	18.08M
EBITDA	13.44M	9.33M	34.00K	-10.07M	198.00K	2.34M
Net Income	11.89M	8.36M	-2.23M	-11.63M	-1.70M	194.00K
Balance Sheet
Total Assets	60.43M	51.50M	49.41M	48.83M	50.38M	37.49M
Cash, Cash Equivalents and Short-Term Investments	11.85M	7.08M	3.46M	1.92M	10.58M	6.83M
Total Debt	1.52M	1.28M	8.33M	8.73M	5.06M	3.56M
Total Liabilities	23.66M	21.67M	28.10M	28.70M	17.77M	14.97M
Stockholders Equity	36.76M	29.83M	21.31M	20.14M	32.62M	22.52M
Cash Flow
Free Cash Flow	13.23M	10.21M	-462.00K	-10.75M	-8.72M	3.50M
Operating Cash Flow	14.56M	11.44M	1.66M	-9.00M	-6.30M	4.44M
Investing Cash Flow	-2.28M	-1.24M	-2.12M	-1.75M	-2.34M	-946.00K
Financing Cash Flow	-3.41M	-6.59M	2.00M	2.09M	12.40M	-1.35M

BK Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 67.2 is above the 20-day moving average (MA) of 47.30, above the 50-day MA of 46.14, and above the 200-day MA of 38.50, indicating a bullish trend. The MACD of 6.26 indicates Negative momentum. The RSI at 76.75 is Negative, neither overbought nor oversold. The STOCH value of 92.91 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	80 Outperform	$252.55M	21.01	39.51%	―	4.63%	328.61%
FEIM	76 Outperform	$262.17M	10.94	49.88%	3.71%	26.30%	317.51%
CRNT	63 Neutral	$167.02M	12.27	8.61%	―	5.06%	29.66%
INSG	61 Neutral	$147.87M	29.71	111.75%	―	-10.99%	―
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%
KVHI	57 Neutral	$105.52M	―	-4.46%	―	-12.22%	71.69%
CMTL	45 Neutral	$57.91M	―	-43.88%	―	-12.02%	-615.33%

BK Technologies Corporate Events

BK Technologies Reports Strong Q2 2025 Financial Results

BK Technologies announced its financial results for the second quarter of 2025, reporting a revenue increase to $21.2 million and a significant improvement in gross margin to 47.4%. The company also raised its full-year 2025 earnings targets due to strong demand and operational efficiencies. Notably, the company secured $12.9 million in purchase orders from the USDA Forest Service, indicating robust federal order activity and setting the stage for a strong second half of the year.

BK Technologies Approves Long-Term Stock Option Awards

On July 10, 2025, BK Technologies Corporation’s Compensation Committee approved performance-based stock option awards for CEO John M. Suzuki and CFO Scott A. Malmanger under the 2025 Incentive Compensation Plan. These awards, designed as long-term incentives, cover fiscal years 2025 through 2029, with no further long-term incentives planned for the executives until 2029. The options will vest based on achieving specific share price targets over five years, with amendments made to the executives’ employment agreements to align with these stock option terms, particularly in the event of a change in control.

BK Technologies Approves 2025 Equity Incentive Plan

At the Annual Meeting on June 18, 2025, BK Technologies Corporation’s stockholders approved the 2025 Equity Incentive Plan and the Employee Stock Purchase Plan, replacing the 2017 plan and authorizing new shares for issuance. Additionally, the meeting saw the election of directors, ratification of the accounting firm, and advisory approval of executive compensation, indicating strategic alignment and operational continuity for the company.