Bio-Key Story

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BKYI -- USA Stock  

USD 3.14  0.17  5.14%

Bio-Key Intl Tangible Asset Value is most likely to increase significantly in the upcoming years. The preceding year's Tangible Asset Value was reported at 2.34 Million. The current Asset Turnover is estimated to increase to 0.24, while Average Assets are projected to decrease to roughly 9.7 M. The essential intention for this outlook is to break down our current position on Bio-Key for stockholders considering to short it. We will examine why Bio-Key Intl stockholders may still consider a stake in the business.
Published over three weeks ago
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Our projection for Bio Key Intl (NASDAQ:BKYI) in April
The company has a beta of 1.3124. Let's try to break down what Bio-Key's beta means in this case. Bio-Key Intl returns are very sensitive to returns on the market. As the market goes up or down, Bio-Key Intl is expected to follow. The beta indicator helps investors understand whether Bio-Key Intl moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Bio-Key deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Bio-Key Intl. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Bio-Key Intl

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Bio-Key Intl's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Bio-Key Intl in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bio-Key Intl. Your research has to be compared to or analyzed against Bio-Key Intl's peers to derive any actionable benefits. When done correctly, Bio-Key Intl's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bio-Key Intl.

How important is Bio-Key Intl's Liquidity

Bio-Key Intl financial leverage refers to using borrowed capital as a funding source to finance Bio-Key Intl ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bio-Key Intl financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bio-Key Intl's total debt and its cash.

How Bio-Key utilizes its cash?

To perform a cash flow analysis of Bio-Key Intl, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bio-Key Intl is receiving and how much cash it distributes out in a given period. The Bio-Key Intl cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Bio-Key Intl Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at (4.95 Million)

Acquisition by Alia Emmanuel of 146 shares of Bio-Key Intl subject to Rule 16b-3

Legal trades by Bio-Key Intl insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Bio-Key insider trading alert for grant of common stock by Alia Emmanuel, the corporate stakeholder, on 30th of March 2021. This event was filed by Bio Key International Inc with SEC on 2021-03-30. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

The modest gains experienced by current holders of Bio-Key Intl could raise concerns from stockholders as the firm it trading at a share price of 3.52 on 1,265,348 in volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.47. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Bio-Key Intl partners.

Margin Breakdown

EBITDA Margin(5.1)
Gross Margin(0.0785)
Profit Margin(5.94)

Bio-Key Intl implied volatility may change after the rise

Current Information Ratio is up to -0.01. Price may drop again. Bio-Key Intl shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bio-Key Intl further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bio-Key Intl future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bio-Key Intl's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bio-Key Intl's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Bio-Key Intl

While some other firms under the security & protection services industry are still a bit expensive, Bio-Key Intl may offer a potential longer-term growth to stockholders. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Bio-Key Intl holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bio-Key Intl.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Bio-Key Intl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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