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.

Quickly go to:

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.
The reported net income has been mixed in the past 5 years: BKTI reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: BKTI reported negative operating cash flow in multiple years.

1.2 Ratios

BKTI's Return On Assets of 19.67% is amongst the best of the industry. BKTI outperforms 97.92% of its industry peers.
BKTI's Return On Equity of 32.33% is amongst the best of the industry. BKTI outperforms 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.
With an excellent Operating Margin value of 14.98%, BKTI belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
BKTI has a Gross Margin of 43.66%. This is comparable to the rest of the industry: BKTI outperforms 56.25% of its industry peers.
BKTI's Gross Margin has been stable in the last couple of years.

		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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BKTI is creating value.
Compared to 1 year ago, BKTI has about the same amount of shares outstanding.
Compared to 5 years ago, BKTI has more shares outstanding
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.

2.2 Solvency

BKTI has an Altman-Z score of 10.32. This indicates that BKTI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.32, BKTI belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
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	10.32

ROIC/WACC2.17

WACC9.61%

2.3 Liquidity

A Current Ratio of 2.82 indicates that BKTI has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.82, BKTI is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.74 indicates that BKTI should not have too much problems paying its short term obligations.
The Quick ratio of BKTI (1.74) is comparable to the rest of the industry.

		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.
The Revenue has been growing by 13.82% on average over the past years. This is quite good.

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
The Revenue is expected to grow by 11.34% on average over the next years. This is quite good.

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

BKTI is valuated quite expensively with a Price/Earnings ratio of 25.88.
Based on the Price/Earnings ratio, BKTI is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. BKTI is around the same levels.
Based on the Price/Forward Earnings ratio of 18.62, the valuation of BKTI can be described as rather expensive.
BKTI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BKTI is cheaper than 70.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.26. BKTI is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	25.88
Fwd PE	18.62

4.2 Price Multiples

BKTI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BKTI is valued a bit cheaper than 62.50% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.05
EV/EBITDA	22.65

4.3 Compensation for Growth

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