
Byrna’s stock price has taken a beating over the past six months, shedding 78.5% of its value and falling to $3.38 per share. This may have investors wondering how to approach the situation.
Given the weaker price action, is now an opportune time to buy BYRN? Find out in our full research report, it’s free.
Why Is Byrna a Good Business?
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
1. Skyrocketing Revenue Shows Strong Momentum
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Byrna grew its sales at an incredible 23.7% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers.

2. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Byrna’s margin expanded by 39.2 percentage points over the last five years. Byrna’s free cash flow margin for the trailing 12 months was breakeven.

3. New Investments Bear Fruit as ROIC Jumps
We like to invest in businesses with high returns, but the trend in a company’s ROIC can also be an early indicator of future business quality.
Over the last few years, Byrna’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.
Final Judgment
These are just a few reasons why Byrna ranks highly on our list. After the recent drawdown, the stock trades at $3.38 per share (or a forward price-to-sales ratio of 0.8×). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
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