Koss Corporation (KOSS) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on KOSS

Koss Corporation faces challenges due to tariff headwinds and export delays, despite robust direct-to-consumer sales growth. The company's profitability is being scrutinized, with a comparison to Aftermaster highlighting areas for improvement in risk, valuation, and earnings. Additionally, low institutional ownership of 6.2% may indicate a lack of confidence from major investors, potentially impacting the company's ability to attract capital.

1.c. Company Highlights

Last Price	4.26
Change Percentage	2.16%
Open	4.16
Previous Close	4.17
Market Cap ( Millions)	40
Volume	13134
Year High	8.59
Year Low	4
M A 50	4.44
M A 200	5.12

FCF Yield	-1.36%
Dividend Yield	0.00%
ROE	-2.85%
Debt / Equity	8.06%
Net Debt / EBIDTA	1.04%
Price To Book	1.33
Price Earnings Ratio	-46.27
Price To FCF	-73.77
Price To sales	3.15
EV / EBITDA	-20.13

2. Transcript Summary

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3. NewsRoom

Koss (NASDAQ:KOSS) Share Price Crosses Below 200 Day Moving Average – Should You Sell?

Feb -10

Source: defenseworld.net

Koss Stock Rises 6% Despite Incurring Q2 Loss Due to Tariff Headwinds

Feb -04

Source:

Koss Corporation Reports Second Quarter Results

Jan -29

Source: globenewswire.com

Koss (NASDAQ:KOSS) Stock Price Crosses Below 200 Day Moving Average – Here’s What Happened

Jan -14

Source: defenseworld.net

Koss (NASDAQ:KOSS) Share Price Passes Below 200-Day Moving Average – Here’s What Happened

Jan -06

Source: defenseworld.net

Head to Head Comparison: Koss (NASDAQ:KOSS) and Toshiba (OTCMKTS:TOSYY)

Dec -28

Source: defenseworld.net

Aftermaster (OTCMKTS:AFTM) versus Koss (NASDAQ:KOSS) Financial Comparison

Dec -02

Source: defenseworld.net

How Do These 2 Micro-caps "Sound?"

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Stereo Headphones and Related Accessories

Expected Growth: 4.5%

Growing demand for immersive audio experiences, increasing adoption of wireless headphones, and advancements in audio technology drive the growth of the stereo headphones market.

7. Detailed Products

Stereo Headphones

Koss Corporation offers a wide range of stereo headphones designed for professional and consumer use, providing high-fidelity sound reproduction and comfort.

Noise-Cancelling Headphones

Koss noise-cancelling headphones utilize advanced noise-cancelling technology to block ambient noise, providing an immersive listening experience.

Wireless Headphones

Koss wireless headphones offer freedom from cords, providing a convenient and hassle-free listening experience.

Gaming Headsets

Koss gaming headsets are designed for gamers, providing immersive audio and crystal-clear communication.

Aviation Headsets

Koss aviation headsets are designed for pilots and aviation professionals, providing clear communication and noise reduction in high-noise environments.

Assistive Listening Devices

Koss assistive listening devices are designed to help individuals with hearing impairments, providing clear and amplified sound.

8. Koss Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Koss Corporation faces moderate threat from substitutes as there are limited alternatives to its audio products, but customers may opt for other forms of entertainment.

Bargaining Power Of Customers

Koss Corporation's customers have high bargaining power due to the availability of alternative products and the company's dependence on a few large retailers.

Bargaining Power Of Suppliers

Koss Corporation has a diverse supplier base, which reduces the bargaining power of individual suppliers, and the company is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the audio products industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The audio products industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	8.77%
Debt Cost	3.95%
Equity Weight	91.23%
Equity Cost	0.61%
WACC	0.90%
Leverage	9.61%

11. Quality Control: Koss Corporation passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Sonos

A-Score: 4.0/10

Value: 4.0

Growth: 3.6

Quality: 4.6

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

Turtle Beach

A-Score: 3.9/10

Value: 5.6

Growth: 4.2

Quality: 6.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.3

1-Year Total Return ->

GoPro

A-Score: 3.5/10

Value: 8.5

Growth: 0.3

Quality: 3.2

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

Koss

A-Score: 3.3/10

Value: 5.9

Growth: 2.1

Quality: 4.6

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

Universal Electronics

A-Score: 2.9/10

Value: 10.0

Growth: 0.9

Quality: 3.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

VIZIO

A-Score: 2.6/10

Value: 3.2

Growth: 1.9

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.38%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

0.90%

Koss Corporation - US5006921085

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KOSS

1.c. Company Highlights

More Volatile

Fairly Valued

Average Quality

Cheaper

Lower Growth

Average Yield

Medium Volatility

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Stereo Headphones and Related Accessories

Expected Growth: 4.5%

7. Detailed Products

Stereo Headphones

Noise-Cancelling Headphones

Wireless Headphones

Gaming Headsets

Aviation Headsets

Assistive Listening Devices

8. Koss Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Koss Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.26$

Current Price

4.26$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA