NasdaqCM:BKYI

Stock Analysis Report

Executive Summary

BIO-key International, Inc. develops and markets fingerprint biometric identification and identity verification technologies, and related identity management and credentialing biometric hardware and software solutions.


Snowflake Analysis

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

How has BIO-key International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKYI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.4%

BKYI

-6.6%

US Software

-4.2%

US Market


1 Year Return

-36.1%

BKYI

29.5%

US Software

14.0%

US Market

Return vs Industry: BKYI underperformed the US Software industry which returned 35.1% over the past year.

Return vs Market: BKYI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BKYIIndustryMarket
7 Day6.4%-6.6%-4.2%
30 Day27.5%1.8%-1.8%
90 Day66.5%8.4%2.6%
1 Year-36.1%-36.1%30.8%29.5%16.3%14.0%
3 Year-73.8%-73.8%138.3%128.2%43.2%34.0%
5 Year-68.9%-68.9%203.2%181.5%65.9%47.6%

Price Volatility Vs. Market

How volatile is BIO-key International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BIO-key International undervalued compared to its fair value and its price relative to the market?

1.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate BKYI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate BKYI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BKYI is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: BKYI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BKYI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BKYI is good value based on its PB Ratio (1.5x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is BIO-key International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKYI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BKYI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BKYI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BKYI's revenue (36.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BKYI's revenue (36.2% 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 BKYI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BIO-key International performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKYI is currently unprofitable.

Growing Profit Margin: BKYI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BKYI is unprofitable, and losses have increased over the past 5 years at a rate of -28.3% per year.

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

Earnings vs Industry: BKYI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: BKYI has a negative Return on Equity (-90.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BIO-key International's financial position?


Financial Position Analysis

Short Term Liabilities: BKYI's short term assets ($3.7M) exceed its short term liabilities ($3.2M).

Long Term Liabilities: BKYI's short term assets ($3.7M) exceed its long term liabilities ($426.9K).


Debt to Equity History and Analysis

Debt Level: BKYI's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BKYI's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: BKYI has a low level of unsold assets or inventory.

Debt Coverage by Assets: BKYI's debt is covered by short term assets (assets are 2x debt).


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: BKYI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BKYI has less than a year of cash runway if free cash flow continues to grow at historical rates of 6.3% each year.


Next Steps

Dividend

What is BIO-key International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BKYI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Mike DePasquale (64yo)

17.1yrs

Tenure

US$333,101

Compensation

Mr. Michael W. DePasquale, also known as Mike, has been the Chief Executive Officer of BIO-key International Inc. since August 2006. Mr. DePasquale served as the Chief Executive Officer of BIO-key Internat ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD333.10K) is below average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael DePasquale
Chairman & CEO17.1yrsUS$333.10k0.072% $8.0k
Cecilia Welch
Chief Financial Officer10.2yrsUS$218.64kno data
Mira LaCous
Chief Technology Officer5.9yrsUS$235.25kno data
Scott Mahnken
Vice President of Marketing9yrsUS$155.95kno data
James Sullivan
Senior Vice President of Strategy & Business Development7.8yrsno datano data
Frederick Corsentino
Chief Revenue Officer1.4yrsno datano data
Maduawuchi Uwazie
Managing Director - Africa0.3yrsno datano data

7.8yrs

Average Tenure

59yo

Average Age

Experienced Management: BKYI's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael DePasquale
Chairman & CEO17.1yrsUS$333.10k0.072% $8.0k
Pieter Knook
Independent Director3.8yrsUS$10.59k0.12% $13.0k
Thomas Gilley
Independent Director6.1yrsUS$9.09k0.15% $17.0k
Yick Shin
Independent Director2.3yrsUS$8.09k0.068% $7.5k
Robert Michel
Independent Director2.8yrsUS$11.09k0.14% $15.7k
Kwok Wong
Director4.2yrsUS$343.99k29.7% $3.3m
Thomas Bush
Independent Director6.1yrsUS$9.59k0.12% $13.5k
Jianhui Yao
Director4.2yrsUS$4.58k0.026% $2.9k

4.2yrs

Average Tenure

59yo

Average Age

Experienced Board: BKYI's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 41.3%.


Top Shareholders

Company Information

BIO-key International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BIO-key International, Inc.
  • Ticker: BKYI
  • Exchange: NasdaqCM
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$11.041m
  • Shares outstanding: 14.41m
  • Website: https://www.bio-key.com

Number of Employees


Location

  • BIO-key International, Inc.
  • Building A
  • Suite E
  • Wall
  • New Jersey
  • 7719
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKYINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 1997

Biography

BIO-key International, Inc. develops and markets fingerprint biometric identification and identity verification technologies, and related identity management and credentialing biometric hardware and software solutions. Its solutions enable application developers, value added resellers, and channel partners to integrate fingerprint biometrics into their applications. It offers ID Director, a solution for integration with CA Technologies / Broadcom’s Single Sign-on solution, Oracle’s Fusion Middleware SSO, IBM Tivoli Access Manager, as well as ISAM and other solutions. The company also provides Vector Segment Technology SDK, a biometric software development kit that provides developers the ability to incorporate its biometric capabilities into their respective product offerings or infrastructure; Intelligent Image Indexing, a biometric identification solution that offers one-to-many and one-to-one user identification; and Biometric Service Provider, which provides support for the BioAPI for a compliant interface to applications using biometrics for verification and identification. In addition, it offers WEB-key, an authentication-transaction security technology to conduct identification and identity verification transactions in unsecure environments, such as the world wide Web or off-site cloud environments. Additionally, the company develops and distributes hardware components; and sells third-party hardware components. BIO-key International, Inc. markets its products through its direct sales force, as well as through distributors, resellers, integrators, and partner networks to government and corporate customers primarily in North America. It has strategic partnership with Quantum Business Advisory to bring its software and hardware solutions to enterprises in India. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:45
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.