Our prognosis on Kopin (USA Stocks:KOPN) to bounce back in April

KOPN Stock

USD 0.98 0.01 1.03%

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As many baby boomers are still indifferent towards semiconductors & semiconductor equipment space, it makes sense to recap Kopin. What exactly are Kopin shareholders getting in April? Is Kopin current valuation justified for 2023? Here i will cover my perspective on valuation to give Kopin insiders a better outlook on taking a position in the stock.

Published over two weeks ago

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Reviewed by Rifka Kats

The company currently holds 3.52 M in liabilities with Debt to Equity (D/E) ratio of 0.12, which may suggest the firm is not taking enough advantage from borrowing. Kopin is UNDERVALUED at 2.03 per share with modest projections ahead. About 15.0% of the company shares are owned by institutional investors. The book value of Kopin was now reported as 0.33. Kopin recorded a loss per share of 0.17. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 13th of July 2000.

Our prognosis on Kopin (USA Stocks:KOPN) to bounce back in April

We determine the current worth of Kopin using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Kopin based exclusively on its fundamental and basic technical indicators. By analyzing Kopin's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Kopin's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Kopin. We calculate exposure to Kopin's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Kopin's related companies.

Watch out for price decline

Please consider monitoring Kopin on a daily basis if you are holding a position in it. Kopin is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Kopin stock to be traded above the $1 level to remain listed. If Kopin stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Kopin Investment Alerts

Kopin investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Kopin performance across your portfolios.Please check all investment alerts for Kopin

Kopin Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Kopin value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Kopin competition to find correlations between indicators driving the intrinsic value of Kopin.

How does Kopin utilize its cash?

To perform a cash flow analysis of Kopin, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kopin is receiving and how much cash it distributes out in a given period. The Kopin cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Kopin Net Cash Flow from Operations is very stable at the moment as compared to the past year. Kopin reported last year Net Cash Flow from Operations of (15.92 Million)

Acquisition by Richard Sneider of 44117 shares of Kopin subject to Rule 16b-3

Legal trades by Kopin insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Kopin insider trading alert for grant of common stock by Richard Sneider, Chief Financial Officer, on 7th of February 2023. This event was filed by Kopin Corp with SEC on 2023-02-07. Statement of changes in beneficial ownership - SEC Form 4. Richard Sneider currently serves as cfo, principal accounting officer and treasurer of Kopin [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after Kopin Financials

Kopin reported the previous year's revenue of 45.67 M. Net Loss for the year was (13.47 M) with profit before overhead, payroll, taxes, and interest of 10.64 M.

	2010	2016	2022	2023 (projected)
Revenues USD	45.67 M	22.64 M	26.04 M	31.75 M
Revenues	45.67 M	22.64 M	26.04 M	31.75 M

Revenues USD Revenues

Margins Breakdown

Kopin profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Kopin itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Kopin profit margins.

	Operating Margin	(0.73)
	EBITDA Margin	(0.83)
	Gross Margin	0.32
	Profit Margin	(1.01)

Kopin Revenue Per Employee is very stable at the moment. Also, Kopin Receivables Turnover is increasing over the last 7 years.

Kopin implied volatility may change after the roll up

Recent Risk Adjusted Performance is up to -0.05. Price may decline again. Kopin exhibits very low volatility with skewness of -0.86 and kurtosis of 4.39. However, we advise investors to further study Kopin technical indicators to ensure that all market info is available and is reliable. Kopin is a potential penny stock. Although Kopin may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Kopin. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Kopin instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Take On Kopin

Although some other companies in the electronic components industry are either recovering or due for a correction, Kopin may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor exit any shares of Kopin at this time. The Kopin risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Kopin.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Kopin. Please refer to our Terms of Use for any information regarding our disclosure principles.

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