Company Overview
Byrna Technologies Inc. operates as a specialized less-lethal self-defense technology company, developing, manufacturing, and selling personal security solutions across global markets including the United States, South Africa, Europe, South America, Asia, and Canada. The firm focuses on providing handheld personal security devices and shoulder-fired launch systems designed for non-lethal force applications. This business model places the company within the Industrials sector, specifically the Aerospace & Defense industry, where it competes in the provision of advanced security hardware for both civilian and professional use. With a market capitalization of $213.56M and annual revenue of $118.12M, the company demonstrates a mid-cap profile supported by a workforce of 159 employees. These valuation and revenue figures indicate that Byrna holds a significant position relative to its peer group, suggesting an established operational footprint that generates substantial sales volume while maintaining a substantial enterprise value within the defense technology landscape.
Financial Health
The company reported a trailing twelve-month revenue of $118.12M, resulting in a net income of $9.69M and an EBITDA of $13.95M. The substantial gap between the $118.12M revenue and the $9.69M net income reveals a cost structure where non-operating expenses, taxes, or interest costs consume approximately 91.8% of gross profit before reaching the bottom line, indicating significant operational overhead or specific one-time charges affecting the final profitability. While the net income stands at $9.69M, the free cash flow is reported at $-16,573,250, which signifies a current lack of financial flexibility as the company is burning cash rather than generating it from operations. This negative cash flow position suggests that capital expenditures or working capital requirements currently exceed the cash generated by sales, requiring external financing or cash reserves to fund operations. The company maintains a gross margin of 60.5%, an operating margin of 11.2%, and a profit margin of 8.2%, where the disparity between the high gross margin and the lower operating and profit margins indicates that selling, general, and administrative expenses are the primary drivers reducing profitability. In terms of solvency, the company holds $15.48M in cash against $2.35M in debt, supported by a debt-to-equity ratio of 3.57, which presents a leveraged balance sheet where equity capital is lower than debt obligations despite the positive cash balance. The current ratio stands at 3.73, indicating a highly conservative short-term liquidity position where current assets are more than three times current liabilities, providing ample coverage for immediate obligations. Return on equity is 16.1% while return on assets is 9.5%, metrics that reveal management effectiveness in generating returns relative to shareholders' equity and total assets, with equity being more efficient than the asset base overall.
Valuation Assessment
Byrna Technologies Inc. currently trades with a trailing P/E ratio of 23.55 and a forward P/E of 16.82, where the difference between these two metrics implies that the market expects earnings to increase significantly in the future to justify the lower forward multiple. The price-to-book ratio is 3.25, indicating that the market values the company at a substantial premium over its net asset book value, likely reflecting intangible assets or growth expectations embedded in the stock price. Alternative valuation metrics such as the price-to-sales ratio of 1.81 and an EV/EBITDA of 14.37 provide context on how the company is priced relative to its sales and earnings power, suggesting a valuation that is moderate when adjusted for sales volume but higher when viewed against cash earnings. The stock has a 52-week high of $34.30 and a 52-week low of $8.88, and without the current price explicitly stated in the available facts, the relative trading position can only be described by the range boundaries which define the volatility envelope for the security. The beta value is 2.36, which means the stock price is expected to be 2.36 times more volatile than the broader market, exposing investors to heightened price fluctuations during periods of market stress or rally.
Growth & Income
The company experienced a revenue growth rate of 26.0% year-over-year, while earnings growth was negative 64.8% year-over-year. This divergence implies that earnings are growing significantly slower than revenue, likely due to the previously mentioned negative free cash flow and high operating expenses eroding the bottom line despite top-line expansion. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm reinvests all earnings back into the business rather than distributing them to shareholders. This approach aligns with the need to fund operations and reduce the negative cash flow burn to support future growth initiatives. The overall growth and income profile is characterized by robust top-line expansion coupled with significant earnings contraction and a complete absence of dividend income, presenting a high-risk, high-reward scenario dependent on future operational efficiency improvements.