Koss (KOSS) AI Stock Analysis

• Market Cap: $46.88M
• Dividend Yield: N/A
• Average Volume (3M): 120.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -0.34%
• EPS Growth: 32.41%
• Country: US
• Employees: 28
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): -0.03
• Shares Outstanding: 9,375,795
• 10 Day Avg. Volume: 136,734
• 30 Day Avg. Volume: 120,389
• PEG Ratio: <0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 7.10
• Enterprise Value/Ebitda: -5.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-9.27%Downside)

Koss's stock score reflects significant challenges in financial performance, technical weakness, and poor valuation. Declining revenues and negative profitability are major concerns, compounded by bearish market trends and unfavorable valuation metrics. Immediate strategic action is needed to improve its financial position.

Koss Business Overview & Revenue Model

Company Description

Koss Corporation, together with its subsidiaries, designs, manufactures, and sells stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, the Russian Federation, Japan, Malaysia, and internationally. It offers high-fidelity headphones, wireless Bluetooth headphones, wireless Bluetooth speakers, computer headsets, telecommunications headsets, active noise canceling headphones, and compact disc recordings under the Koss Classics label. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, military exchanges, and prisons under the Koss name, as well as private label. It also sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company also exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

Koss Corporation generates revenue through the sale of its audio products, which are distributed across multiple channels, including direct-to-consumer sales via its website, partnerships with major retailers, and through international distributors. Key revenue streams include its flagship headphones, which are sold under various models and price points to cater to different market segments. The company also capitalizes on brand loyalty and its reputation for quality by offering limited editions and collaborations, which can command premium prices. Additionally, Koss licenses some of its patented technology, providing another revenue stream. The company's earnings are influenced by factors such as consumer electronics trends, technological advancements in audio equipment, and partnerships with retail giants that enhance product visibility and accessibility.

Koss Financial Statement Overview

Summary

Koss is facing significant financial challenges, including declining revenues, negative profitability margins, and inefficiencies in cash generation. While the balance sheet shows a manageable debt-to-equity ratio, liquidity concerns persist due to declining assets and cash reserves.

Income Statement

Koss has experienced declining revenues with a negative revenue growth rate when compared to the previous year. The gross profit margin has decreased, indicating potential issues with cost management. The company is currently operating at a loss, as evidenced by negative net income and EBIT margins. These factors highlight challenges in profitability and operational efficiency.

Balance Sheet

The balance sheet reflects a moderate level of leverage with a debt-to-equity ratio that is manageable. The stockholders' equity has been stable, suggesting a solid equity base. However, the decline in total assets and cash reserves over time could pose liquidity risks. The equity ratio indicates a healthy proportion of equity in the company's capital structure, yet the overall financial health could be at risk if losses continue.

Cash Flow

Koss is facing challenges in generating positive free cash flow, as indicated by the negative free cash flow figures. The operating cash flow to net income ratio shows inefficiencies in converting income into cash. The cash flow from operating activities is minimal, raising concerns about the company's ability to sustain operations without external financing. These issues highlight the need for improved cash management strategies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	12.43M	12.27M	13.10M	17.61M	19.55M	18.31M
Gross Profit	4.78M	4.19M	4.46M	6.62M	6.73M	5.66M
EBITDA	-1.45M	-1.68M	-24.65M	1.20M	-87.88K	-153.41K
Net Income	-752.50K	-950.91K	8.30M	1.27M	493.59K	-465.60K
Balance Sheet
Total Assets	37.30M	37.20M	38.37M	29.96M	26.32M	22.58M
Cash, Cash Equivalents and Short-Term Investments	13.04M	14.94M	20.16M	9.21M	6.95M	4.00M
Total Debt	2.60M	2.78M	3.02M	3.25M	2.31M	3.09M
Total Liabilities	4.71M	6.05M	6.91M	7.26M	6.75M	7.42M
Stockholders Equity	30.68M	31.15M	31.46M	22.70M	19.58M	15.16M
Cash Flow
Free Cash Flow	-338.55K	-652.29K	10.64M	-1.05M	-251.41K	1.38M
Operating Cash Flow	146.02K	-190.53K	10.74M	-942.53K	348.74K	1.80M
Investing Cash Flow	-375.42K	-198.43K	-17.02M	1.81M	-704.21K	-537.27K
Financing Cash Flow	251.62K	134.97K	171.35K	1.39M	3.31M	506.70K

Koss Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOSS, the sentiment is Negative. The current price of 4.96 is below the 20-day moving average (MA) of 5.50, below the 50-day MA of 5.16, and below the 200-day MA of 6.25, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOSS.

Koss Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$32.30B	6.54	-12.31%	1.93%	5.64%	-21.98%
UEIC	56 Neutral	$90.61M	―	-13.55%	―	-2.15%	52.80%
GPRO	55 Neutral	$137.68M	―	-83.57%	―	-20.88%	62.21%
ZEPP	55 Neutral	$35.06M	―	-28.57%	―	-39.27%	-211.36%
WLDS	43 Neutral	$1.46M	―	-167.89%	―	536.59%	-5.05%
KOSS	42 Neutral	$46.88M	―	-2.44%	―	-0.34%	32.41%

Koss Corporate Events

Koss Announces Leadership Changes with Director Departure

On May 6, 2025, Koss Corporation announced the upcoming retirement of John C. Koss, Jr., Vice President of Sales, effective no sooner than June 30, 2026. Additionally, on May 7, 2025, Steven A. Leveen informed the company of his decision not to seek re-election as a director at the 2026 Annual Meeting of Stockholders, a decision not stemming from any disagreements with the company’s operations or policies.