Byrna Technologies (BYRN), a player in the less-lethal self-defense technology industry, has experienced remarkable growth and returns, with the stock surging up 336% over the past year. High-profile celebrity endorsements, expansion in retail outlets, and strategic national and international partnerships have been key contributing factors to Byrna’s overwhelming success. The company has managed to augment its brand presence significantly, leading to a 194% year-on-year increase in net revenue.
The company looks to capitalize on its revenue growth while expanding its market footprint, positioning it for continued profitability and growth, making it an attractive investment opportunity.
Byrna Expands with New National Accounts
Byrna Technologies operates in the self-defense technology sector, creating and selling less-lethal personal security solutions for various global consumer and professional markets. The company’s product line includes handheld security devices, shoulder-fired launchers, different projectiles, self-defense aerosol products, and other related safety accessories.
Byrna’s flagship product, the Byrna SD, is a handheld launcher that uses CO2 for power. A unique feature of this product is its patented first-shot, pull-pierce technology, which allows the CO2 cylinder to remain unpunctured until use. This results in a significant advantage over competitors’ products, which leak CO2 within 24 hours, as the Byrna launcher retains its functionality irrespective of the duration of inactivity.
The company has expanded its distribution and achieved national account status with Bass Pro Shops and Cabela’s, growing its presence nationwide from 42 to 137 stores. The company also ventured into Mexico following a collaboration with Mexico’s STPS for a federally certified program that allows civilians to use their product legally. Uruguay’s Interior Ministry secured an initial order, while Byrna also deployed launchers at Argentine airports.
Analysis of Byrna’s Recent Financial Results
Byrna recently reported a solid performance for its 2024 fiscal third quarter, with net revenue rising significantly by 194% year-over-year to $20.9 million. The company’s new advertising strategy and the rise in popularity of the less-lethal space were the primary contributors to this surge in earnings.
Gross profits for the quarter were $13.0 million, a marked increase from the $3.2 million in Q3 2023, attributed to a surge in sales made through high-margin direct-to-consumer channels, cost reductions, and economies of scale. Operating expenses for the same period were $12.2 million, up 67% from $7.3 million in Q3 2023, mainly due to variable selling costs, increased marketing spending, and higher payroll expenses. However, the net income for Q3 2024 was $1.0 million, compared to a loss of $4.1 million in Q3 2023.
As of the quarter’s end, the company reported cash and cash equivalents of $20.1 million, while inventory totaled $19.8 million. The company has no current or long-term debt.
Is BYRN a Buy?
The stock has been on an upward trend, climbing over 118% year-to-date. It trades in the upper half of its 52-week price range of $3.19 – $19.42 and shows positive price momentum by trading above its 50-day (14.37) and 100-day (12.93) moving averages. The company’s impressive growth looks to be priced in, as the P/S ratio of 3.7x marks a relative premium compared to the Aerospace & Defense industry average of 2.2x.
Analysts following the company have been bullish on the stock. For instance, Ladenburg analyst Jon Hickman recently reiterated a Buy rating while raising the price target from $20.75 to $21.75, noting the “impressive” Q3 results and expectations of solid revenue growth in the coming years.
Based on three analysts’ recent recommendations, Byrna Technologies is rated a strong buy overall. The average price target for BYRN stock is $21.25, representing a potential upside of 42.24% from current levels.
Bottom Line on Byrna
Byrna Technologies has demonstrated exceptional performance over the past year, driven by celebrity endorsements, retail expansion, national and international partnerships, and increased brand recognition. Its innovative products, robust financial performance, and optimistic projections from analysts mark BYRN as a compelling investment option in self-defense.
