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Daily Investment Brief: BK Technologies Corp.

|About: BK Technologies Corporation (BKTI)
Summary

BKTI's debt-to-equity ratio is very low at 0.11.

45.28% is their gross profit margin.

Net operating cash flow has significantly decreased to $0.98 million.

Brief Company Overview

BK Technologies Corporation (BKTI) designs, manufactures, and markets wireless communications products in the United States and internationally.

The company offers two-way land mobile radios, repeaters, base stations, and related components and subsystems under BK Technologies, BK Radio, and RELM brand names.

Its BK Technologies and BK Radio branded products include land-mobile radio equipment for professional radio users primarily in government, public safety, and military applications, as well as P-25 digital products; and RELM branded products provide two-way communications for commercial and industrial concerns, such as hotels, construction firms, schools, and transportation services.

BK Technologies Corporation is headquartered in West Melbourne, Florida.

NOTES

  • BKTI's debt-to-equity ratio is very low at 0.11 and is currently below that of the subsector average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
  • 45.28% is their gross profit margin. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.85% is in-line with the subsector average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computer and Electronic Product Manufacturing subsector. The net income has significantly decreased by 126.1% when compared to the same quarter one year ago, falling from $0.95 million to -$0.25 million.
  • Net operating cash flow has significantly decreased to $0.98 million or 75.80% when compared to the same quarter last year. In addition, when comparing to the subsector average, the firm's growth rate is much lower.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.