Koss Corp (KOSS) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Koss's price-to-book of 1.05 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $3.31 is below our fair value estimate of $5.56.

Margin of safety over 20%

The price is 40.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -10.7% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -3.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 41.9% over the last twelve months, against 38.8% a year earlier.

Return on equity under 15%

Return on equity was -2.9% over the last twelve months and averaged 5.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -11.6%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Koss's return on equity of -2.9% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 0.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -7.2% over the last twelve months, against a 5-year average of 10.6%.

Net margin below the industry

Koss's net margin of -7.2% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

No debt

Koss has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest not well covered

Operating income covers interest expense -969.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 14.07 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.53; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Koss has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.