Why Byrna Technologies Inc. (NASDAQ:BYRN) Could Be Worth Watching

Byrna Technologies Inc. (NASDAQ:BYRN), is not the largest company out there, but it led the NASDAQCM gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Byrna Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Byrna Technologies

Is Byrna Technologies Still Cheap?

Good news, investors! Byrna Technologies is still a bargain right now. According to my valuation, the intrinsic value for the stock is $6.79, but it is currently trading at US$4.95 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Byrna Technologies’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Byrna Technologies?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 9.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Byrna Technologies, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since BYRN is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BYRN for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BYRN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing Byrna Technologies at this point in time. In terms of investment risks, we've identified 2 warning signs with Byrna Technologies, and understanding them should be part of your investment process.

If you are no longer interested in Byrna Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.