Taking everything into account, BKTI scores 6 out of 10 in our fundamental rating. BKTI was compared to 48 industry peers in the Communications Equipment industry. BKTI has an excellent financial health rating, but there are some minor concerns on its profitability. BKTI has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

BKTI had positive earnings in the past year.
BKTI had a positive operating cash flow in the past year.
In multiple years BKTI reported negative net income over the last 5 years.
In multiple years BKTI reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 19.67%, BKTI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
The Return On Equity of BKTI (32.33%) is better than 95.83% of its industry peers.
BKTI's Return On Invested Capital of 20.83% is amongst the best of the industry. BKTI outperforms 93.75% of its industry peers.

		Industry Rank	Sector Rank
ROA	19.67%
ROE	32.33%
ROIC	20.83%

ROA(3y)-4.03%

ROA(5y)-2.97%

ROE(3y)-13.4%

ROE(5y)-8.87%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

BKTI's Profit Margin of 15.18% is amongst the best of the industry. BKTI outperforms 85.42% of its industry peers.
BKTI has a Operating Margin of 14.98%. This is amongst the best in the industry. BKTI outperforms 85.42% of its industry peers.
With a Gross Margin value of 43.66%, BKTI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Gross Margin of BKTI has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	14.98%
PM (TTM)	15.18%
GM	43.66%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.9%

GM growth 5Y-0.57%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

BKTI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
BKTI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for BKTI has been increased compared to 5 years ago.
BKTI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

BKTI has an Altman-Z score of 9.45. This indicates that BKTI is financially healthy and has little risk of bankruptcy at the moment.
BKTI has a Altman-Z score of 9.45. This is amongst the best in the industry. BKTI outperforms 87.50% of its industry peers.
There is no outstanding debt for BKTI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	9.45

ROIC/WACC2.1

WACC9.92%

2.3 Liquidity

A Current Ratio of 2.82 indicates that BKTI has no problem at all paying its short term obligations.
BKTI has a better Current ratio (2.82) than 75.00% of its industry peers.
A Quick Ratio of 1.74 indicates that BKTI should not have too much problems paying its short term obligations.
BKTI's Quick ratio of 1.74 is in line compared to the rest of the industry. BKTI outperforms 56.25% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.82
Quick Ratio	1.74

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

BKTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 298.27%, which is quite impressive.
The Revenue has been growing slightly by 4.63% in the past year.
Measured over the past years, BKTI shows a quite strong growth in Revenue. The Revenue has been growing by 13.82% on average per year.

EPS 1Y (TTM)298.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%176.6%

Revenue 1Y (TTM)4.63%

Revenue growth 3Y19.08%

Revenue growth 5Y13.82%

Sales Q2Q%4.52%

3.2 Future

The Earnings Per Share is expected to grow by 47.37% on average over the next years. This is a very strong growth
BKTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.34% yearly.

EPS Next Y105.21%

EPS Next 2Y47.37%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year11.39%

Revenue Next 2Y11.34%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 25.81, the valuation of BKTI can be described as expensive.
68.75% of the companies in the same industry are more expensive than BKTI, based on the Price/Earnings ratio.
BKTI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.57, which indicates a rather expensive current valuation of BKTI.
Based on the Price/Forward Earnings ratio, BKTI is valued a bit cheaper than 70.83% of the companies in the same industry.
BKTI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.

		Industry Rank	Sector Rank
PE	25.81
Fwd PE	18.57

4.2 Price Multiples

BKTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BKTI is cheaper than 60.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BKTI is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	23.99
EV/EBITDA	20.12

4.3 Compensation for Growth

BKTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BKTI has a very decent profitability rating, which may justify a higher PE ratio.
BKTI's earnings are expected to grow with 47.37% in the coming years. This may justify a more expensive valuation.