MeritValue

KOSS CORP

KOSSdata completeness 88%15 fiscal years on file
The thesis, from the filings

KOSS CORP earns about 7% on invested capital, and has bought back 3% of its shares over 5 years. The applicable estimate puts fair value near $0.55 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$19.5M1$17.7M2$13.1M3$12.3M4$12.6M4
Net income$493,5945$1.27M6$8.32M7−$950,9118−$874,8318
Operating cash flow$348,7409−$942,53010$10.7M11−$190,53112−$214,90812
Capital expenditure$600,15513$108,15814$98,44115$461,76016$490,71716
Free cash flow (derived)−$251,4159−$1.05M10$10.6M11−$652,29112−$705,62512
Total debt—————
Cash & equivalents$6.95M17$9.21M18$3.09M19$2.84M20$2.81M20
Diluted shares9.6M10.0M9.8M9.3M9.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$32.69
your share of equity
Profit it earned you last year
−$0.93
Free cash flow it threw off
−$0.75
Debt you’d be carrying
—

10 shares is a claim on $32.69 of net worth that earned you −$0.93 and generated −$0.75 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 4%FY22 9%FY23 29%FY24 -3%FY25 -2%

It earned an average 7% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$0.55
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$493,594
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0000056701-22-000021 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0000056701-23-000026 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0000056701-24-000028 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-06-30 · accession 0000056701-25-000044 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-06-30 · accession 0000056701-22-000021 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0000056701-23-000026 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0000056701-24-000028 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0000056701-25-000044 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0000056701-22-000021 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000056701-23-000026 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0000056701-24-000028 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0000056701-25-000044 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-06-30 · accession 0000056701-22-000021 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0000056701-23-000026 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0000056701-24-000028 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-06-30 · accession 0000056701-25-000044 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-06-30 · accession 0000056701-22-000021 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-06-30 · accession 0000056701-23-000026 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-06-30 · accession 0000056701-24-000028 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-06-30 · accession 0000056701-25-000044 (CashAndCashEquivalentsAtCarryingValue)