We assign a fundamental rating of 6 out of 10 to BKTI. 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 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

In the past year BKTI was profitable.
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 has a better Return On Assets (19.67%) than 97.96% of its industry peers.
BKTI has a Return On Equity of 32.33%. This is amongst the best in the industry. BKTI outperforms 95.92% of its industry peers.
BKTI has a better Return On Invested Capital (20.83%) than 93.88% 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

Looking at the Profit Margin, with a value of 15.18%, BKTI belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
With an excellent Operating Margin value of 14.98%, BKTI belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
BKTI has a Gross Margin (43.66%) which is comparable to the rest of the industry.
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.
BKTI has about the same amout of shares outstanding than it did 1 year ago.
BKTI has more shares outstanding than it did 5 years ago.
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

An Altman-Z score of 9.77 indicates that BKTI is not in any danger for bankruptcy at the moment.
BKTI has a Altman-Z score of 9.77. This is amongst the best in the industry. BKTI outperforms 89.80% 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	9.77

ROIC/WACC2.17

WACC9.59%

2.3 Liquidity

A Current Ratio of 2.82 indicates that BKTI has no problem at all paying its short term obligations.
The Current ratio of BKTI (2.82) is better than 75.51% of its industry peers.
A Quick Ratio of 1.74 indicates that BKTI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, BKTI is in line with its industry, outperforming 57.14% of the companies in the same 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.
BKTI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.63%.
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
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

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 67.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. BKTI is around the same levels.
With a Price/Forward Earnings ratio of 18.62, BKTI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKTI indicates a somewhat cheap valuation: BKTI is cheaper than 69.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, BKTI is valued a bit cheaper.

		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 63.27% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	24.05
EV/EBITDA	21.05

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.
BKTI's earnings are expected to grow with 47.37% in the coming years. This may justify a more expensive valuation.