What is the market’s view of BK Technologies’ future operating performance as reflected in the current price of $15? Over the next 6 years, BK Technologies shares will need to reach $25 to achieve average annual stock market performance of 9.0%. BK Technologies’ stock price will need to reach $29 by 2028 to achieve upper quartile performance.
Executive Summary
- Price Target Research identifies BK Technologies as having: low profitability, below average financial strength, low stability, and very low expected growth.
- Very high valuation, below market shareholder returns. Current valuation levels are very high relative to the BK Technologies Peer Group. Recent market returns have underperformed the BK Technologies Peer Group. Total shareholder returns expected to significantly lag the overall equity market. Based on current investor expectations, BK Technologies shares should reach a level of $4 by 2028 — an -19.6% per year total shareholder return. A 2028 stock price of $25 would reflect median performance and a price of $29 would be required to reach upper quartile performance.
- BK Technologies’ past growth is slightly below average. Historical growth has been below average relative to the BK Technologies Peer Group and forecasted growth is relatively very low. EPS Growth, Asset Growth, and Revenue Growth have lagged. These factors have negatively affected market perceptions of BK Technologies. BK Technologies’ historical income statement and balance sheet growth are not available.
- Asset Turnover is group leading. This factor has strengthened market perceptions of BK Technologies. The company has very low cash and will have to work to generate attractive investments and improve valuation.
- BK Technologies’ risk profile is unfavorable. Overall variability has been very high with very high revenue variability, very high E.P.S. variability, and above average stock price volatility. Financial Strength is below average and earnings’ expectations are unavailable. The debt/capital ratio has risen very significantly.
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