Bio-Key Stock Story

BKYI

Stock

USD 1.76 0.04 2.22%

Macroaxis Story

Bio-Key Intl Invested Capital is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital was reported at 5.42 Million. The current Invested Capital Average is estimated to increase to about 5.3 M, while Average Assets are projected to decrease to roughly 16 M. Bio-Key Intl is scheduled to announce its earnings tomorrow. While many fundamental traders are getting carried away by overanalyzing balance sheets and income statements, it is reasonable to concentrate on Bio-Key Intl against its basic efficiency ratios. We will analyze why Bio-Key Intl investors may still consider a stake in the business. Will stockholders continue to hold, or should we expect a sell-off?

Published over three months ago

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Should you pay attention to changing Bio Key Intl (NASDAQ:BKYI) fundamentals?

Bio-Key Intl is UNDERVALUED at 2.97 per share with modest projections ahead.

We consider Bio-Key Intl very risky. Bio-Key Intl secures Sharpe Ratio (or Efficiency) of 0.009, which signifies that the company had 0.009% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Bio-Key Intl, which you can use to evaluate the future volatility of the firm. Please confirm Bio-Key Intl Downside Deviation of 3.99, mean deviation of 3.12, and Risk Adjusted Performance of 0.0095 to double-check if the risk estimate we provide is consistent with the expected return of 0.0503%.

Should you pay attention to changing Bio-Key Intl (NASDAQ:BKYI) fundamentals?

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Bio-Key Intl income statement, its balance sheet, and the statement of cash flows. Potential Bio-Key Intl investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Bio-Key Intl investors may use each financial statement separately, they are all related. The changes in Bio-Key Intl's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bio-Key Intl's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Bio-Key Intl fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Bio-Key Intl performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Bio-Key Intl shares is the value that is considered the true value of the share. If the intrinsic value of Bio-Key is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Bio-Key Intl.

Please read more on our fundamental analysis page.

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 does Bio-Key utilize 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 (8.98 Million)

Bio-Key Intl Gross Profit

Bio-Key Intl Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bio-Key Intl previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bio-Key Intl Gross Profit growth over the last 10 years.

Please check Gross Profit in more details.

Acquisition by Robert Michel of 1383 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 Robert Michel, the corporate stakeholder, on 12th of August 2022. This event was filed by Bio Key International Inc with SEC on 2022-08-12. 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 current indifference towards the small price fluctuations of Bio-Key Intl could raise concerns from stockholders as the firm is trading at a share price of 1.95 on 32,792 in volume. The company directors and management did not add any value to Bio-Key Intl investors in April. However, most investors can still diversify their portfolios with Bio-Key Intl to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.6. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Bio-Key Intl partners.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bio-Key Intl has an asset utilization ratio of 30.61 percent. This implies that the company is making $0.31 for each dollar of assets. An increasing asset utilization means that Bio-Key Intl is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets

15.1 M

Current Assets	15.12 Million	63.82
Assets Non Current	4.39 Million	18.53
Goodwill	4.18 Million	17.65

Analysis of Bio-Key Intl

The potential upside is down to 6.44 as of today.

As of the 15th of May 2022, Bio-Key Intl shows the Downside Deviation of 3.99, risk adjusted performance of 0.0095, and Mean Deviation of 3.12. Bio-Key Intl technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for Bio-Key Intl, which can be compared to its rivals. Please confirm Bio-Key Intl coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Bio-Key Intl is priced correctly, providing market reflects its regular price of 1.95 per share. Please also double-check Bio-Key Intl total risk alpha, which is currently at 0.6861 to validate the company can sustain itself at a future point.

While many of the other players in the security & protection services industry are either recovering or due for a correction, Bio-Key Intl may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 15th of May 2022, we see that Bio-Key Intl moves indifferently to market moves. The company is undervalued with very small probability of financial unrest within the next 24 months. However, our actual 90 days buy-sell recommendation on the company is Strong Sell.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

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 Gabriel 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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