BKTI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. BKTI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. BKTI has a decent growth rate and is not valued too expensively.

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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.
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.
The Return On Invested Capital of BKTI (20.83%) is better than 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

With an excellent Profit Margin value of 15.18%, BKTI belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
The Operating Margin of BKTI (14.98%) is better than 85.42% of its industry peers.
BKTI's Gross Margin of 43.66% is in line compared to the rest of the industry. BKTI outperforms 56.25% of its industry peers.
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.
Compared to 5 years ago, BKTI has more shares outstanding
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

An Altman-Z score of 9.49 indicates that BKTI is not in any danger for bankruptcy at the moment.
BKTI's Altman-Z score of 9.49 is amongst the best of the industry. BKTI outperforms 87.50% of its industry peers.
BKTI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	9.49

ROIC/WACC2.11

WACC9.87%

2.3 Liquidity

A Current Ratio of 2.82 indicates that BKTI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.82, BKTI is in the better half of 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.
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.
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
Based on estimates for the next years, BKTI will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.

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

With a Price/Earnings ratio of 24.93, BKTI is valued on the expensive side.
Based on the Price/Earnings ratio, BKTI is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of BKTI to the average of the S&P500 Index (28.32), we can say BKTI is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.93, BKTI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BKTI is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, BKTI is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	24.93
Fwd PE	17.93

4.2 Price Multiples

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

		Industry Rank	Sector Rank
P/FCF	23.16
EV/EBITDA	20.24

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.
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.