BIO-key International (BKYI) AI Stock Analysis

• Market Cap: $4.98M
• Dividend Yield: N/A
• Average Volume (3M): 129.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -7.25%
• EPS Growth: 80.12%
• Country: US
• Employees: 41
• Sector: Industrials
• Sector Strength: 84
• Industry: Security & Protection Services
• EPS (TTM): -0.16
• Shares Outstanding: 6,848,775
• 10 Day Avg. Volume: 81,584
• 30 Day Avg. Volume: 129,782
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 0.31
• Enterprise Value/Ebitda: -0.40
• 1Y Price Target: $2.00
• Price Target Upside: 163.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $1.00 ▲(31.58% Upside)

BIO-key International's overall stock score reflects considerable financial challenges and valuation concerns, compounded by technical weakness and the risk of delisting. While the earnings call and strategic efforts provide some optimism, the stock is overshadowed by financial instability and valuation issues.

Positive Factors

Financial Performance

BKYI reported better-than-expected 1Q25 results with revenue of $1.6M, above the estimate of $1.3M.

Market Position

BKYI shares appear oversold with a market cap currently trading near the estimate of cash on hand, leading to a reiterated Buy rating.

Product Innovation

BKYI recently entered the passkey authentication market with the launch of 'Passkey:YOU', a unique password-less authentication solution.

Negative Factors

Brand Transition

Results were below expectations due to an intentional shift away from its Swivel Secure brand to focus on core Bio-Key branded solutions, resulting in lower 2024 results.

Revenue Decline

2024 total revenue was down 11% year-over-year, as strong growth in license revenue was offset by declines in hardware sales and services revenue.

BIO-key International Business Overview & Revenue Model

Company Description

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

How the Company Makes Money

BIO-key International generates revenue through the sale of its biometric hardware and software solutions. Key revenue streams include one-time sales of fingerprint scanners and authentication devices, as well as recurring revenue from software licenses and subscription-based services for its cloud-based identity management platforms. The company may also engage in strategic partnerships and collaborations with other technology firms, governmental bodies, or commercial enterprises to expand its market reach and integrate its solutions within broader security frameworks. Additionally, custom development projects and consulting services contribute to its earnings.

BIO-key International Financial Statement Overview

Summary

BIO-key International faces notable financial challenges, marked by negative profitability and cash flow metrics. Despite improvements in gross profit margin and managed debt levels, the company struggles with consistent revenue growth and cash generation, indicating potential risks.

Income Statement

The company's income statement reveals a challenging financial position with persistent negative net income and EBIT. The gross profit margin has improved significantly from earlier years, indicating better cost control, yet the negative EBIT and net profit margins suggest ongoing operational inefficiencies. Revenue growth has been erratic, with notable increases in some years but an overall lack of consistent upward trajectory.

Balance Sheet

The balance sheet reflects a mixed situation. The debt-to-equity ratio is relatively low, suggesting manageable debt levels compared to equity. However, the equity ratio shows a moderate reliance on liabilities to finance assets. Return on equity remains negative due to continuous losses, highlighting profitability issues. Overall, the balance sheet shows some stability but is weakened by ongoing profitability concerns.

Cash Flow

The cash flow statement shows significant negative operating cash flow, which overshadows the company's financial flexibility. Free cash flow has consistently been negative, indicating challenges in generating sufficient cash from operations. The high operating cash flow to net income ratio suggests potential cash flow generation issues. Despite some positive financing cash flow, the cash flow position remains concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93M	7.75M	7.02M	5.11M	2.84M
Gross Profit	5.64M	1.43M	4.98M	3.44M	2.04M
EBITDA	-3.55M	-7.85M	-11.37M	-4.53M	-4.90M
Net Income	-4.30M	-8.52M	-10.74M	-4.57M	-13.59M
Balance Sheet
Total Assets	8.62M	4.52M	11.91M	17.77M	22.52M
Cash, Cash Equivalents and Short-Term Investments	437.60K	511.40K	2.64M	7.75M	17.51M
Total Debt	1.78M	365.35K	2.22M	264.16K	730.47K
Total Liabilities	4.84M	3.45M	4.85M	2.19M	2.19M
Stockholders Equity	3.77M	1.06M	7.06M	15.58M	20.34M
Cash Flow
Free Cash Flow	-2.93M	-3.79M	-6.31M	-9.02M	-4.99M
Operating Cash Flow	-2.91M	-3.79M	-6.23M	-8.98M	-4.95M
Investing Cash Flow	-13.05K	-1.00K	-696.62K	-42.02K	-2.23M
Financing Cash Flow	2.83M	1.43M	1.90M	-218.60K	24.09M

BIO-key International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKYI, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.81, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 33.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKYI.

BIO-key International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥258.28B	14.57	8.48%	2.82%	6.30%	11.95%
SPCB	59 Neutral	$45.02M	30.96	9.92%	―	―	―
VRME	59 Neutral	$12.92M	―	-28.42%	―	-9.87%	-49.12%
KSCP	55 Neutral	$50.20M	―	-243.06%	―	-5.64%	35.09%
DGLY	47 Neutral	$3.33M	―	-118.58%	―	-28.69%	65.07%
BKYI	46 Neutral	$4.98M	―	-116.82%	―	-7.25%	80.12%
IVDA	―	$5.28M	―	-112.33%	―	―	―

BIO-key International Corporate Events

BIO-key Faces Nasdaq Delisting Risk Amid Stock Drop

On May 9, 2025, BIO-key International received a notice from Nasdaq indicating that its stock price had fallen below the $1.00 minimum bid requirement for 30 consecutive business days, risking delisting. The company has until November 5, 2025, to regain compliance, with potential for an additional 180-day extension if necessary. In Q1 2025, BIO-key reported a revenue of $1.6 million, a decrease from the previous year, but noted improvements in cash position and a reduction in operating expenses. The company is optimistic about future growth, driven by increased adoption of its biometric solutions and strategic partnerships, despite fluctuations in quarterly financial performance.

The most recent analyst rating on (BKYI) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on BIO-key International stock, see the BKYI Stock Forecast page.