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ZYBERNO

Stock Report

Updated Sep 1, 2026

KOSS CORPORATION (KOSS)

Technology • NASDAQ

$3.46

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

28.0/100

POOR BUSINESS

KOSS CORPORATION (KOSS) scores 28/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full KOSS quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-61.0%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

1.5%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full KOSS valuation analysis · → View full KOSS Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-3.6%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.17x)

Operating Margin (Operational Efficiency):CRITICAL (-17.3%)

Return on Capital (Capital Efficiency):CRITICAL (-5.5%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

KOSS CORPORATION (KOSS) stock report — Zyberno Score 28/100 (POOR BUSINESS), Margin of Safety -100.0%, -61% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, KOSS CORPORATION (KOSS) trades at $3.46 against an estimated intrinsic value per share of $0.10 — a -100.0% Margin of Safety based on Owner Earnings of $218.88K TTM, projected at -20.6% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -61.0% annually.

Over the trailing twelve months, KOSS generated $218.88K in Owner Earnings. Capital was deployed as follows: $134.62K invested in capital expenditures. Reinvestment rate: -15.2%. Owner Earnings have declined at 20.6% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:3.46

Market Cap:$32.75M

Valuation Multiples (3)

P/B Ratio:1.10x

P/S Ratio:2.55x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$33.21M

Pfcf Ratio:167.82x

Price Action & Momentum (3)

12-1 Momentum:

-42.4% (21th pctile)

📈 Click to view full KOSS Momentum analysis →

Momentum Percentile:21 / 100

% of 52-Week High:54.1%

B. Profitability Assessment

Return Metrics (5)

ROE:

-3.6%

📊 Click to view full KOSS ROE analysis →

ROA:-3.0%

Roic:

-5.5%

📊 Click to view full KOSS ROIC analysis →

Reinvestment Rate:-15.2%

Fundamental Growth Rate (g):0.8%

Margin Analysis (3)

Operating Margin Ttm:-17.3%

Net Margin Ttm:-8.6%

Ebitda Margin:-15.3%

TTM Performance (3)

Gross Margin Ttm:35.6%

Operating Margin Ttm:-17.3%

Net Margin Ttm:-8.6%

Yield Metrics (3)

Earnings Yield:-$2.93

Owner Earnings Yield:$0.62

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-0.05

📊 Click to view full KOSS Earnings Surprise analysis →

EPS Surprise vs Expected:-68.4%

Latest Earnings Filed:2026-05-08

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-4.0%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-50.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-16.2%

Operating Cash Flow Growth Rate (Linear):-19.5%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:15.36x

Quick Ratio:12.47x

Cash Ratio:1.15x

Leverage Analysis (3)

Debt To Equity Ttm:0.17x

Debt-to-Equity Ratio:0.17x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-1,047.72x

Times Interest Earned:-1,047.72

Capital Structure (4)

Working Capital:23,644,451.00

Cash And Cash Equivalents:1,901,466.00

Long Term Debt:$2.09M

Net Debt:$452.08K

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $12.84M

Linear Growth: -4.0%

📊 Click to view full KOSS Revenue analysis & methodology →

Cost Of Revenue Ttm:$8.27M

Profitability Breakdown (2)

Gross profit TTM: $4.57M

Linear Growth: -2.7%

📊 Click to view full KOSS Gross Profit analysis & methodology →

-$2.22M

Bottom Line Performance (3)

Net income TTM: -$1.10M

Linear Growth: -50.0%

📊 Click to view full KOSS Net Income analysis & methodology →

Income Before Tax:-$1.09M

Ebitda Ttm:-1,967,445.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:213,870.00

Sga Expense:6,792,251.00

Income Tax Expense:$13.40K

Interest Expense:1,658.00

Expense Ratios (3)

R And D To Revenue Percentage:7.6%

Sga To Revenue Percentage:240.5%

Ebitda Margin:-15.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$36.06M

Current Assets:$25.29M

Ppe Net:1,580,815.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:6,331,037.00

Current Liabilities:1,646,710.00

Long Term Debt:$2.09M

Short Term Debt:$262.70K

Equity & Capital (3)

Equity:$29.73M

Retained Earnings:$15.95M

Common Stock:20,000,000.00

Working Capital Items (3)

Accounts Receivable:1,047,912.00

Inventory:4,760,003.00

Accounts Payable:478,558.00

Special Items (2)

Contract Liabilities:241,519.00

Stock Based Compensation:1,474.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $346.16K

Linear Growth: -19.5%

Free cash flow TTM: $211.53K

Linear Growth: -16.2%

📊 Click to view full KOSS Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$1.05M

Capital Expenditures Ttm:134,624.00

Financing Activities (3)

Financing Cash Flow:-$2.37K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:251,504.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.11

Eps diluted TTM: -$0.11

Linear Growth: -50.0%

📊 Click to view full KOSS EPS analysis & methodology →

Earnings Per Share Ttm:-$0.12

Revenue & Cash Per Share (3)

Sales Per Share Ttm:1.36

Operating Cash Flow Per Share:-$0.02

Fcf Per Share Ttm:0.02

Book Value & Capital (2)

Book Value Per Share:$3.14

Cash Per Share:0.20

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.35x

Working Capital Turnover Ttm:0.54x

Receivables Management (2)

Receivables Turnover Ttm:12.25x

Days Sales Outstanding Ttm:29.79

Inventory Management (2)

Inventory Turnover Ttm:1.74x

Days Inventory Outstanding Ttm:210.14

Payables & Cash Cycle (2)

Days Payable Outstanding:21.13

Cash Conversion Cycle:218.80

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:40.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $218.88K

Linear Growth: -20.6%

📊 Click to view full KOSS Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.02

Owner Earnings Yield:$0.62

Growth Assessment (1)

Owner Earnings Growth Rate:-$20.60

Damodaran Growth Analysis (2)

Reinvestment Rate:-15.2%

Fundamental Growth Rate (g):0.8%

Intrinsic Value Models (1)

Intrinsic Value:

$976.24K

📊 Click to view full KOSS DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full KOSS valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

-61.0%

📊 Click to view full KOSS expected return analysis →

Forward Expected Return (Yield + Growth):

1.5%

📊 Click to view full KOSS expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):-4.0%

Net Income Growth Rate (Linear):-50.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-16.2%

Operating Cash Flow Growth Rate (Linear):-19.5%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-2.7%

Book Value Growth Rate (Linear):4.5%

Owner Earnings Growth Rate:-$20.60

C. Company Profile & Context

Corporate Information (6)

Symbol:KOSS

Company Name:KOSS CORPORATION

Sector:Technology

Industry:Household Audio & Video Equipment

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:9.47M

Shares Outstanding Basic:9.47M

Shares Outstanding Diluted:9.47M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 06:01:29 UTC

Data Timestamp:2026-08-20T16:35:22.970170