Kopin (KOPN) AI Stock Analysis

• Market Cap: $218.79M
• Dividend Yield: N/A
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 24.61%
• EPS Growth: -99.28%
• Country: US
• Employees: 181
• Sector: Technology
• Sector Strength: 68
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.36
• Shares Outstanding: 162,067,000
• 10 Day Avg. Volume: 2,532,239
• 30 Day Avg. Volume: 2,835,739
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.38
• Price Target Upside: 76.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Kopin's overall stock score is low, primarily due to its financial struggles with ongoing losses and negative cash flows. While there is some optimism from strategic initiatives and revenue growth, substantial litigation costs and unfavorable valuation metrics weigh heavily on its stock performance. Technical indicators and earnings call sentiment offer limited positive outlook but are insufficient to offset the financial challenges.

Positive Factors

Financial Performance

Kopin reported better revenue and in line EPS, with product revenue up 15% quarter-over-quarter and 86% year-over-year.

Order Momentum

The company had record bookings of $46 million, indicating strong demand for its products.

Strategic Positioning

Kopin's status as the only U.S.-owned microdisplay company after Samsung's acquisition of eMagin positions it advantageously when working with the U.S. government.

Negative Factors

Legal Challenges

There is an outstanding legal case, but the company feels confident in reducing damages and appealing any judgment.

Legal Impact

The unfavorable legal ruling caused shares to underperform and overshadowed the Company’s impressive rebound in growth.

Market Perception

Despite investor concerns, the solid results and guidance should allow investors to finally exhale, with shares already pricing in the potential worst-case scenario.

Kopin Business Overview & Revenue Model

Company Description

Kopin Corporation is a leading developer and provider of innovative wearable technologies and solutions. The company is headquartered in Westborough, Massachusetts, and operates primarily in the display, optics, and wearable technology sectors. Kopin's core products include microdisplays, optics and modules for augmented reality (AR) and virtual reality (VR) applications, as well as head-worn systems for military, consumer, and enterprise markets.

How the Company Makes Money

Kopin makes money through the sale of its advanced display products and wearable technology solutions. The company's primary revenue streams include the sale of microdisplays, optics, and modules that are integrated into AR and VR headsets and other wearable devices. Kopin collaborates with major technology companies and partners to supply its products for a variety of applications, from military and defense contracts to consumer electronics. Additionally, the company may generate revenue from licensing its technologies and intellectual property, as well as from designing and developing custom solutions for specific client needs.

Kopin Financial Statement Overview

Summary

Kopin is facing significant financial challenges, with consistent losses impacting its profitability and cash flows. The revenue growth observed in the TTM period is a positive sign, but it hasn't translated into profitability improvements. The balance sheet is stable in terms of debt management, but the ongoing negative financial performance poses risks. The company needs to focus on enhancing operational efficiency and cost management to improve its financial health.

Income Statement

Kopin's income statement shows a challenging financial position with consistent net losses over multiple periods. The TTM (Trailing-Twelve-Months) revenue is significantly higher than previous years, but margins remain negative, indicating persistent profitability issues. Revenue growth is seen, but it has not translated into improved profit margins, with both gross and net profit margins remaining negative.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the company has been consistently losing equity value over time. The equity ratio indicates that a significant portion of assets is financed through equity, which is a positive aspect, but the company is yet to show improvements in its return on equity due to ongoing losses.

Cash Flow

Cash flow statements depict negative operating and free cash flows, indicating operational inefficiencies. The company is not generating cash from its operations, which raises concerns about its long-term sustainability without external financing. Despite some capital expenditure control, the lack of positive free cash flow growth suggests difficulties in turning around the cash flow performance.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
40.39M	47.40M	45.67M	40.13M	29.52M
	Gross Profit
15.44M	4.56M	20.61M	18.73M	8.62M
	EBIT
-17.18M	-21.79M	-13.78M	-4.76M	-26.05M
	EBITDA
-16.57M	-21.07M	-13.11M	-4.11M	-25.26M
	Net Income Common Stockholders
-19.75M	-19.33M	-13.77M	-4.53M	-29.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.40M	12.65M	29.30M	20.75M	21.78M
	Total Assets
49.31M	43.75M	62.71M	47.55M	43.05M
	Total Debt
2.48M	3.36M	3.81M	1.80M	2.83M
	Net Debt
-3.23M	-4.90M	-22.98M	-18.94M	-18.95M
	Total Liabilities
19.80M	19.76M	23.38M	19.25M	14.45M
	Stockholders Equity
29.51M	24.16M	39.50M	28.44M	28.61M
Cash Flow		Free Cash Flow
-16.21M	-18.52M	-11.78M	-4.96M	-21.20M
	Operating Cash Flow
-15.26M	-17.69M	-10.75M	-4.42M	-21.03M
	Investing Cash Flow
-8.14M	-3.31M	53.67K	11.80M	4.74M
	Financing Cash Flow
21.34M	2.66M	20.45M	3.69M	7.99M

Kopin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOPN, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.18, and above the 200-day MA of 1.10, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 89.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOPN.

Kopin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPTI	80 Outperform	$170.46M	21.63	29.85%	―	19.05%	114.23%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
NEON	55 Neutral	$220.19M	―	-37.49%	―	-11.64%	37.97%
LPTH	51 Neutral	$106.80M	―	-30.42%	―	-1.01%	-72.93%
MVIS	45 Neutral	$270.37M	―	-134.07%	―	-35.31%	-2.18%
MEI	45 Neutral	$204.15M	―	-11.90%	8.38%	-6.16%	-59.41%
KOPN	38 Underperform	$218.79M	―	-166.23%	―	24.61%	-99.28%

Kopin Corporate Events

Kopin Updates Executive Compensation and Stock Options

Kopin Corporation announced executive compensation updates, with CEO Michael Murray granted 408,634 restricted stock units and options to purchase common stock, alongside a salary increase to $508,850 for 2025. COO Paul Baker and another executive, Richard Sneider, received restricted stock units based on achieving performance milestones, with salaries set at $360,900 and $362,000, respectively, reflecting the company’s focus on aligning leadership incentives with its fiscal goals.