Overall BKTI gets a fundamental rating of 6 out of 10. We evaluated BKTI against 49 industry peers in the Communications Equipment industry. While BKTI has a great health rating, its profitability is only average at the moment. BKTI is not valued too expensively and it also shows a decent 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.
In multiple years BKTI reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of BKTI (19.67%) is better than 97.92% of its industry peers.
BKTI has a Return On Equity of 32.33%. This is amongst the best in 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

Looking at the Profit Margin, with a value of 15.18%, BKTI belongs to the top of the industry, outperforming 85.42% 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 85.42% of the companies in the same industry.
BKTI has a Gross Margin (43.66%) which is in line with 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
Compared to 1 year ago, BKTI has about the same amount of shares outstanding.
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 10.32 indicates that BKTI is not in any danger for bankruptcy at the moment.
The Altman-Z score of BKTI (10.32) is better than 89.58% 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	10.32

ROIC/WACC2.17

WACC9.59%

2.3 Liquidity

BKTI has a Current Ratio of 2.82. This indicates that BKTI is financially healthy and has no problem in meeting its short term obligations.
BKTI has a Current ratio of 2.82. This is in the better half of the industry: BKTI outperforms 75.00% of its industry peers.
BKTI has a Quick Ratio of 1.74. This is a normal value and indicates that BKTI is financially healthy and should not expect problems in meeting its short term obligations.
BKTI has a Quick ratio of 1.74. This is comparable 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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 298.27% over the past year.
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

BKTI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.37% yearly.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.88, BKTI can be considered very expensive at the moment.
66.67% of the companies in the same industry are more expensive than BKTI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BKTI to the average of the S&P500 Index (27.21), we can say BKTI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.62, the valuation of BKTI can be described as rather expensive.
70.83% of the companies in the same industry are more expensive than BKTI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, 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 is on the same level as the industry average.
62.50% of the companies in the same industry are more expensive than BKTI, based on the Price/Free Cash Flow ratio.

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

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.
A more expensive valuation may be justified as BKTI's earnings are expected to grow with 47.37% in the coming years.