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BYRN

Byrna Technologies NasdaqCM:BYRN Stock Report

Last Price

US$9.27

Market Cap

US$206.1m

7D

6.9%

1Y

-61.2%

Updated

16 Aug, 2022

Data

Company Financials +
BYRN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

BYRN Stock Overview

Byrna Technologies Inc., a less-lethal defense technology company, develops and manufactures less-lethal munitions.

Rewards

Trading at 15.6% below our estimate of its fair value

Earnings are forecast to grow 108.8% per year

Risk Analysis

No risks detected for BYRN from our risk checks.

Byrna Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Byrna Technologies
Historical stock prices
Current Share PriceUS$9.27
52 Week HighUS$30.55
52 Week LowUS$5.89
Beta0.94
1 Month Change12.91%
3 Month Change25.44%
1 Year Change-61.17%
3 Year Change526.35%
5 Year Change692.31%
Change since IPO209.00%

Recent News & Updates

Aug 10

Byrna Technologies: New Products Could Bring The Stock Price Up

Byrna is a defense technology company offering solutions for security situations that do not require the use of lethal force. Management is already present in well-known e-commerce shops, and it has connections with a significant number of physical stores. With so many people trying to sell Byrna’s products, future revenue growth may continue. Byrna Technologies Inc. (BYRN) recently announced that its research teams are working on new launchers. In my view, more products will likely enhance revenue generation. The company also received great financial forecasts from investment analysts, and the guidance is beneficial. There are some risks because BYRN's manufacturing activity is very recent, and many teams were recently created. With that, I believe that more M&A activity could send the stock price north. Byrna Byrna is a defense technology company offering solutions for security situations that do not require the use of lethal force. Byrna's customers include law enforcement and private security customers in addition to individuals, international dealers, and distributors. Considering the list of clients, I believe that the customer base is quite diversified. Presentation Byrna reported sales growth of 154% in 2021, and expects to report sales growth of 36% in 2022. With these figures, I believe that many investors would be interested in the company. Future sales growth is expected to be enhanced by new channels, new markets, and strategic acquisitions. I designed several financial models to understand how fast Byrna could grow. Presentation Future profitability ratios are also improving. Byrna expects to report a target gross profit of 60%-65% and adjusted EBITDA of 30%. I have not used these figures in my models because I believe that they are too optimistic. With that, I believe that investors should know about the Byrna's targets. Presentation With No Debt, New Acquisitions Seem Achievable As of May 31, 2022, Byrna reported $25 million in cash, $56 million in total assets, and $11 million in total liabilities. Considering the current balance sheet, in my view, Byrna could receive debt to acquire other targets. 10-Q Byrna did not report financial debt, so the net debt is actually negative. Accounts payables are the largest liability. Hence, it seems that some providers are financing Byrna's activity. 10-Q Presentation Expectations From Analysts Are Beneficial Analysts reported beneficial expectations about Byrna's revenue growth, EBITDA margin, and EBT. We are talking about double digit sales growth in 2022 and 2023, and 24%-12% EBITDA margin in 2023 and 2024. I usually don't disclose what other investment analysts report. However, the numbers are so remarkable that I made an exception in this article. Work From Other Analysts It is also quite beneficial that net income is expected to be positive from 2023, and free cash flow will likely trend positive in 2024. Work From Other Analysts E-commerce And New Products Could Enhance Revenue Generation I believe that the sales and marketing processes of Byrna will enhance sales growth. Management is already present in well-known e-commerce shops, and it has connections with a significant number of physical stores. With so many people trying to sell Byrna's products, future revenue growth may continue. We sell our products into the consumer market through our Byrna e-commerce store and a network of over 1,300 local, regional and national outdoor and sporting goods stores, either directly or through distributors. We also sell our products through an Amazon (AMZN) storefront. Source: 10-k Byrna is signing agreements with popular national news providers, and is working with key influencers. According to the annual report, campaigns in the media significantly increase the orders online. In my view, further campaigns will likely help management sell more. Finally, under this case scenario, I assumed that Byrna will have cash to finance more campaigns: Our current marketing strategy includes engaging key influencers in relevant markets to highlight the benefits of our security solutions to their respective networks of followers. Source: 10-k The company is working on new launchers, the Byrna LE and Byrna PE. With more efficient utilization of CO2 and other innovations, new products will likely bring further revenue growth. The company discussed these new products in a recent report: Our design team is comprised of experts in the fields of mechanical design, precision manufacturing and CO2-powered propulsion. We are currently focused on executing the commercial introduction of a series of new launchers, including the Byrna LE and Byrna PE. Source: 10-k The global guns and accessories market is expected to grow at a CAGR of 6% from now until 2027. Under normal circumstances, I believe that Byrna will likely experience sales growth close to the market growth. The global guns and accessories market size was USD 6.14 billion in 2019 and is projected to reach USD 9.33 billion by 2027, exhibiting a CAGR of 6.15% during the forecast period. Source: Fortune Business Insights With sales growth around 6% from 2024 to 2026 and an EBITDA margin of 6%-24%, I obtained 2026 EBITDA of $16 million and 2026 non operating profit after tax of $9 million. My DCF Model In my CAPM model, I included a beta of 1.22, cost of equity of 10%, and cost of debt of 2.8%. My results include a discount of 7.7%. Also, with an exit multiple of 12x, which is close to the sector median, the implied price would be $9.4-$9.5 per share.

Jul 07

Byrna Technologies Non-GAAP EPS of -$0.12, revenue of $11.6M beats by $0.65M, guides FY revenue above the consensus

Byrna Technologies press release (NASDAQ:BYRN): Q2 Non-GAAP EPS of -$0.12. Revenue of $11.6M (-13.4% Y/Y) beats by $0.65M. Reiterates Full Year Revenue Guidance of $55 - $60 Million vs consensus of $54.56M

Shareholder Returns

BYRNUS Aerospace & DefenseUS Market
7D6.9%3.9%4.5%
1Y-61.2%10.1%-8.9%

Return vs Industry: BYRN underperformed the US Aerospace & Defense industry which returned 9.7% over the past year.

Return vs Market: BYRN underperformed the US Market which returned -9.6% over the past year.

Price Volatility

Is BYRN's price volatile compared to industry and market?
BYRN volatility
BYRN Average Weekly Movement8.9%
Aerospace & Defense Industry Average Movement6.5%
Market Average Movement7.6%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: BYRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: BYRN's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005152Bryan Ganzhttps://www.byrna.com

Byrna Technologies Inc., a less-lethal defense technology company, develops and manufactures less-lethal munitions. It offers a Byrna line of handheld personal security devices, including the Byrna SD and Byrna SD .68 caliber handheld personal security devices that are designed to be used by civilians and private security professionals, as well as Byrna HD magazines, shoulder-fired launchers, and projectiles. The company also offers accessories and related safety products, including the Byrna Banshee, Byrna Shield, compressed carbon dioxide canisters, sighting systems, holsters, and Byrna-branded apparels.

Byrna Technologies Fundamentals Summary

How do Byrna Technologies's earnings and revenue compare to its market cap?
BYRN fundamental statistics
Market CapUS$206.13m
Earnings (TTM)-US$11.26m
Revenue (TTM)US$39.46m

5.2x

P/S Ratio

-18.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BYRN income statement (TTM)
RevenueUS$39.46m
Cost of RevenueUS$18.14m
Gross ProfitUS$21.33m
Other ExpensesUS$32.59m
Earnings-US$11.26m

Last Reported Earnings

May 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.51
Gross Margin54.04%
Net Profit Margin-28.55%
Debt/Equity Ratio0%

How did BYRN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is BYRN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BYRN?

Other financial metrics that can be useful for relative valuation.

BYRN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.6x
Enterprise Value/EBITDA-22.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does BYRN's PS Ratio compare to its peers?

BYRN PS Ratio vs Peers
The above table shows the PS ratio for BYRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.8x
RADA RADA Electronic Industries
4.8x26.4%US$550.3m
ISSC Innovative Solutions and Support
3.9xn/aUS$107.4m
RDW Redwire
1.5x50.6%US$218.9m
PKE Park Aerospace
4.8xn/aUS$254.7m
BYRN Byrna Technologies
5.2x27.5%US$206.1m

Price-To-Sales vs Peers: BYRN is expensive based on its Price-To-Sales Ratio (5.2x) compared to the peer average (3.8x).


Price to Earnings Ratio vs Industry

How does BYRN's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

Price-To-Sales vs Industry: BYRN is expensive based on its Price-To-Sales Ratio (5.2x) compared to the US Aerospace & Defense industry average (2.3x)


Price to Sales Ratio vs Fair Ratio

What is BYRN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BYRN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.2x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: BYRN is expensive based on its Price-To-Sales Ratio (5.2x) compared to the estimated Fair Price-To-Sales Ratio (5x).


Share Price vs Fair Value

What is the Fair Price of BYRN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BYRN ($9.27) is trading below our estimate of fair value ($10.99)

Significantly Below Fair Value: BYRN is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Byrna Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


108.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BYRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: BYRN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BYRN is expected to become profitable in the next 3 years.

Revenue vs Market: BYRN's revenue (27.5% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: BYRN's revenue (27.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BYRN's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Byrna Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-27.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BYRN is currently unprofitable.

Growing Profit Margin: BYRN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BYRN is unprofitable, and losses have increased over the past 5 years at a rate of 27% per year.

Accelerating Growth: Unable to compare BYRN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BYRN is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (24.8%).


Return on Equity

High ROE: BYRN has a negative Return on Equity (-24.66%), as it is currently unprofitable.


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Financial Health

How is Byrna Technologies's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BYRN's short term assets ($43.7M) exceed its short term liabilities ($9.6M).

Long Term Liabilities: BYRN's short term assets ($43.7M) exceed its long term liabilities ($1.5M).


Debt to Equity History and Analysis

Debt Level: BYRN is debt free.

Reducing Debt: BYRN currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BYRN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BYRN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Byrna Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BYRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BYRN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BYRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BYRN's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BYRN has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Bryan Ganz (63 yo)

4.08yrs

Tenure

US$787,500

Compensation

Mr. Bryan Scott Ganz has been President of Byrna Technologies Inc. (formerly known as Security Devices International, Inc.) since July 13, 2018 and has been its CEO and Chairman of the Board since April 1,...


CEO Compensation Analysis

Compensation vs Market: Bryan's total compensation ($USD787.50K) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BYRN's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: BYRN's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BYRN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Byrna Technologies Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Byrna Technologies Inc.
  • Ticker: BYRN
  • Exchange: NasdaqCM
  • Founded: 2005
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Implied Market Cap: US$206.133m
  • Shares outstanding: 22.24m
  • Website: https://www.byrna.com

Number of Employees


Location

  • Byrna Technologies Inc.
  • 100 Burtt Road
  • Suite 115
  • Andover
  • Massachusetts
  • 1810
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/05/31
Annual Earnings2021/11/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.