BYRN is now overvalued and could go down -41%

Based on our analysis, Byrna Technologies has received an overvalued rating of 1 out of 5 stars from Cashu. Several key financial ratios indicate that the company may be overestimating its worth relative to the industry. The Price-to-Earnings (PE) Ratio for Byrna stands at 38.22, significantly higher than the sector average of 20.52. A high PE ratio suggests that investors are paying more for each dollar of earnings, which could indicate overvaluation if the company doesn’t have proportionately strong earnings growth. Another concerning metric is the Price-to-Book (PB) Ratio, which is 8.09 compared to the sector’s 2.48. This ratio reflects how much investors are willing to pay for each dollar of net assets. A high PB ratio may imply that the stock is overvalued based on its book value. Despite strong performance in terms of Net Profit Margin at 14.92 and Return on Equity (ROE) at 23.53, which are significantly higher than their respective sector averages of 0.92 and 2.33, these ratios alone do not justify the elevated valuations indicated by the PE and PB ratios. Additionally, while Byrna's Return on Assets (ROA) Ratio is robust at 17.79, compared to the sector average of 0.47, it does not offset the concerns raised by its high PE and PB ratios. Investors should weigh these financial metrics carefully when considering the valuation of Byrna Technologies. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.