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Kopin Corp (KOPN)
NASDAQ:KOPN
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Kopin
(NASDAQ:KOPN)
58Neutral
Positive Factors
Defense Sector Growth
Order momentum in the defense space is expected to continue, with defense revenue significantly increasing year over year.
IVAS Program Opportunity
Kopin is likely in a strong position to potentially capture the display portion of the IVAS program, representing an opportunity in the hundreds of millions of dollars over several years.
Negative Factors
Legal Challenges
There is a potential lingering overhang from an ongoing legal case, but shares are believed to be largely pricing in the worst-case scenario.
Kopin (KOPN) vs. S&P 500 (SPY)
Market Cap
$208.03M
Dividend YieldN/A
Average Volume (3M)3.81M
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth0.60%
EPS Growth-115.20%
CountryUS
Employees144
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-0.41
Shares Outstanding158,800,600
10 Day Avg. Volume2,494,380
30 Day Avg. Volume3,813,321
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.31
Price to Cash Flow (P/CF)-9.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside86.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Kopin Business Overview & Revenue Model
Company DescriptionKopin Corp. engages in the development manufacture, and sale of wearable technologies which include components and systems. Its portfolio includes display, ASIC, ergonomics, optics, whisper voice interface, software, packaging, and OLED displays. The firm uses semiconductor material technology to design, manufacture and market its component products for use in military, enterprise and consumer electronic applications, training and simulation equipment and 3D metrology equipment. The company was founded by John C.C. Fan on April 23, 1984 and is headquartered in Westborough, MA.
How the Company Makes MoneyKopin Corporation generates revenue through the design, development, and sale of its proprietary microdisplays and related technologies. The company's key revenue streams include the sale of microdisplays and optical systems to OEM (original equipment manufacturer) partners, licensing its technologies, and providing engineering services. Kopin's displays are integrated into a variety of applications, ranging from consumer electronics like smart glasses and VR headsets to military equipment. Significant partnerships with technology and defense companies also contribute to its earnings, as these collaborations often involve both product sales and co-development arrangements that leverage Kopin's expertise in display technologies.
Kopin Financial Statement Overview
Summary
Kopin is facing significant financial challenges, with consistent losses impacting its profitability and cash flows. The revenue growth observed in the TTM period is a positive sign, but it hasn't translated into profitability improvements. The balance sheet is stable in terms of debt management, but the ongoing negative financial performance poses risks. The company needs to focus on enhancing operational efficiency and cost management to improve its financial health.Income Statement
Kopin's income statement shows a challenging financial position with consistent net losses over multiple periods. The TTM (Trailing-Twelve-Months) revenue is significantly higher than previous years, but margins remain negative, indicating persistent profitability issues. Revenue growth is seen, but it has not translated into improved profit margins, with both gross and net profit margins remaining negative.38
Negative
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the company has been consistently losing equity value over time. The equity ratio indicates that a significant portion of assets is financed through equity, which is a positive aspect, but the company is yet to show improvements in its return on equity due to ongoing losses.45
Neutral
Cash Flow
Cash flow statements depict negative operating and free cash flows, indicating operational inefficiencies. The company is not generating cash from its operations, which raises concerns about its long-term sustainability without external financing. Despite some capital expenditure control, the lack of positive free cash flow growth suggests difficulties in turning around the cash flow performance.42
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.95B | 40.39M | 47.40M | 45.67M | 40.13M | 29.52M | Gross Profit |
| 2.61B | 15.44M | 4.56M | 20.61M | 18.73M | 8.62M | EBIT |
| -19.79M | -17.18M | -21.79M | -13.78M | -4.76M | -26.05M | EBITDA |
| -22.77M | -16.57M | -21.07M | -13.11M | -4.11M | -25.26M | Net Income Common Stockholders |
| -3.51B | -19.75M | -19.33M | -13.77M | -4.53M | -29.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 35.63M | 17.40M | 12.65M | 29.30M | 20.75M | 21.78M | Total Assets |
| 59.92M | 49.31M | 43.75M | 62.71M | 47.55M | 43.05M | Total Debt |
| 1.53M | 2.48M | 3.36M | 3.81M | 1.80M | 2.83M | Net Debt |
| -30.67M | -3.23M | -4.90M | -22.98M | -18.94M | -18.95M | Total Liabilities |
| 17.73M | 19.80M | 19.76M | 23.38M | 19.25M | 14.45M | Stockholders Equity |
| 42.37M | 29.51M | 24.16M | 39.50M | 28.44M | 28.61M |
| Cash Flow | Free Cash Flow | ||||
| -16.90M | -16.21M | -18.52M | -11.78M | -4.96M | -21.20M | Operating Cash Flow |
| -16.11M | -15.26M | -17.69M | -10.75M | -4.42M | -21.03M | Investing Cash Flow |
| -10.43B | -8.14M | -3.31M | 53.67K | 11.80M | 4.74M | Financing Cash Flow |
| 32.44M | 21.34M | 2.66M | 20.45M | 3.69M | 7.99M |
Kopin Technical Analysis
Negative
1.34
Price Trends
1.52
Negative
1.24
Positive
1.05
Positive
Market Momentum
-0.07
Positive
44.44
Neutral
62.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOPN, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.52, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 62.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOPN.
Kopin Risk Analysis
Kopin disclosed 42 risk factors in its most recent earnings report. Kopin reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kopin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.10B | 33.53 | 14.46% | 1.03% | 12.36% | 9.70% | |
70 Outperform | $31.32M | 87.41 | 0.94% | ― | 11.79% | 35.73% | |
58 Neutral | $208.03M | ― | -169.61% | ― | 0.60% | -115.20% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
55 Neutral | $245.23M | ― | -103.99% | ― | 277.53% | 1.16% | |
51 Neutral | $1.93B | 321.37 | 0.31% | 2.12% | -4.92% | -85.39% | |
50 Neutral | $178.89M | ― | -117.97% | ― | -60.25% | -87.45% |
* Technology Sector Average
Performance Comparison
KOPN
Kopin
1.34
-0.98
-42.24%
KLIC
Kulicke & Soffa
35.61
-12.19
-25.50%
LGL
LGL Group
5.83
-0.43
-6.87%
MVIS
Microvision
1.09
-1.22
-52.81%
OLED
Universal Display
149.65
-11.83
-7.33%
VUZI
Vuzix
2.32
0.92
65.71%
Kopin Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 78.67% | Next Earnings Date: Mar 18, 2025
Earnings Call Sentiment Positive
Kopin reported strong progress with record order projections, significant growth in defense product revenue, and technological advancements. However, challenges included decreased R&D revenues, increased legal expenses, and a larger net loss. The highlights notably outweigh the lowlights, indicating robust growth and strategic alignment.Highlights
Record Orders Projection
Kopin projects over $75 million in orders for 2024, potentially the highest annual order total in the Company's 40-year history.
Significant Increase in Defense Product Revenue
Defense products delivered $10.4 million in revenue, a 109% year-over-year increase.
New Development Orders
Five new customers placed development orders, expected to drive multimillion-dollar production orders in the future.
Improved Quality and Margins
Incoming inspection rates at top customers reached 94% in Q3, up from 86% in the previous quarter, positively impacting gross margins.
Strategic Progress in Defense
Final production qualification milestone reached for high-performance OLED display for the F-35 Lightning II helmet-mounted display system.
3D AOI Market Positioning
Launched next-generation SXGA FLCoS microdisplay system, positioning to meet growing demand in Asia and globally.
Innovative NeuralDisplay Technology
NeuralDisplay platform reached alpha testing, marking a major milestone with significant interest from defense and consumer sectors.
Lowlights
Decrease in Funded R&D Revenues
Funded research and development revenues were $2.3 million, a decrease of $2.7 million compared to Q3 2023.
Increased Legal Expenses
SG&A expenses increased due to higher legal fees, with $1.5 million in legal expenses associated with the BlueRadios matter.
Net Loss Increase
Net loss for Q3 2024 was $3.5 million or $0.03 per share, compared with a net loss of $2.5 million or $0.02 per share in Q3 2023.
Company Guidance
During the Kopin Corporation Q3 2024 earnings call, the company provided guidance indicating a robust growth trajectory. Kopin projected over $75 million in orders for 2024 and beyond, potentially marking the highest annual order total in its 40-year history. The company reported a 26% year-over-year increase in revenue, amounting to $13.3 million for the quarter, with defense products contributing $10.4 million, a significant 109% increase from the previous year. Kopin also highlighted the strategic progress in its defense order book, securing new contracts and follow-on orders, such as a $2 million order for AMLCD displays for the F-35 Lightning II HMDS and a $1.3 million order for an Emerald microdisplay module. The company is optimistic about its financial trajectory, expecting sustained revenue growth, particularly in defense and high-performance integrated products, with the global 3D AOI market projected to grow from $700 million to $3 billion by 2030. Kopin is also exploring opportunities in international markets, with plans to expand its sales infrastructure. The call emphasized Kopin's commitment to enhancing manufacturing and systems automation to meet rising demand and its strategic focus on defense applications, bolstered by potential geopolitical tailwinds.Kopin Corporate Events
Executive/Board Changes
Kopin Updates Executive Compensation and Stock Options
Neutral
Jan 8, 2025
Kopin Corporation announced executive compensation updates, with CEO Michael Murray granted 408,634 restricted stock units and options to purchase common stock, alongside a salary increase to $508,850 for 2025. COO Paul Baker and another executive, Richard Sneider, received restricted stock units based on achieving performance milestones, with salaries set at $360,900 and $362,000, respectively, reflecting the company’s focus on aligning leadership incentives with its fiscal goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.