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BK Technologies Inc (BKTI)
:BKTI
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BK Technologies
(NYSE MKT:BKTI)
75Outperform
Positive Factors
Financial Performance
BK Technologies reported revenue, AEBITDA, and EPS above estimates, driven by strong market acceptance and sales momentum for the BKR 9000.
Product Expansion
BK Technologies introduced the BKR 5000 radio, expanding its reach into the law enforcement and structural fire markets, and the BKR 9000 radio, increasing the Company’s total addressable market significantly.
Strategic Partnerships
The transition of manufacturing activities to East West Manufacturing is expected to provide cost savings, with benefits starting to be seen soon.
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. S&P 500 (SPY)
Market Cap
$168.07M
Dividend YieldN/A
Average Volume (3M)42.08K
Price to Earnings (P/E)17.8
Beta (1Y)0.39
Revenue Growth5.18%
EPS GrowthN/A
CountryUS
Employees113
SectorTechnology
Sector Strength80
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.68
Shares Outstanding3,673,594
10 Day Avg. Volume32,780
30 Day Avg. Volume42,081
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)4.30
Price to Sales (P/S)0.00
P/FCF Ratio12.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$55.00Price Target Upside18.92% 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 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
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| 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
Positive
46.25
Price Trends
39.16
Positive
35.87
Positive
30.54
Positive
Market Momentum
1.44
Positive
55.60
Neutral
81.59
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 46.25 is above the 20-day moving average (MA) of 44.58, above the 50-day MA of 39.16, and above the 200-day MA of 30.54, indicating a bullish trend. The MACD of 1.44 indicates Positive momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.59 is Negative, 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $175.63M | 7.53 | 52.23% | 5.51% | 24.10% | 603.04% | |
75 Outperform | $168.07M | 17.79 | 36.41% | ― | 5.18% | ― | |
72 Outperform | $214.99M | 9.43 | 15.02% | ― | 11.94% | 377.86% | |
60 Neutral | $11.62B | 10.48 | -7.27% | 2.93% | 7.46% | -10.64% | |
54 Neutral | $103.09M | ― | -6.78% | ― | -14.38% | 49.11% | |
50 Neutral | $117.51M | 22.88 | 111.75% | ― | 1.60% | ― | |
44 Neutral | $53.41M | ― | -53.44% | ― | -13.06% | -465.17% |
* Technology Sector Average
Performance Comparison
BKTI
BK Technologies
45.75
31.80
227.96%
CRNT
Ceragon Networks
2.42
-0.33
-12.00%
CMTL
Comtech Telecommunications
1.82
-0.69
-27.49%
FEIM
Frequency Electronics
18.15
9.33
105.78%
KVHI
KVH Industries
5.19
0.03
0.58%
INSG
Inseego
7.72
1.61
26.35%
BK Technologies Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 1.27%|
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 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.
Spark’s Take on BKTI Stock
According to Spark, TipRanks’ AI Analyst, BKTI is a Outperform.
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.
To see Spark’s full report on BKTI stock, click here.
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.