Optical Cable (OCC) AI Stock Analysis

• Market Cap: $54.20M
• Dividend Yield: N/A
• Average Volume (3M): 85.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 9.55%
• EPS Growth: 65.17%
• Country: US
• Employees: 339
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.05
• Shares Outstanding: 8,870,070
• 10 Day Avg. Volume: 176,246
• 30 Day Avg. Volume: 85,835
• PEG Ratio: 0.65
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 56.61
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: 70.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $6.00 ▼(-29.49% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by weak profitability and negative/volatile cash flow despite strong recent revenue growth and an improved leverage profile. Technical indicators are modestly supportive, while negative earnings and no dividend limit valuation support; the earnings call was cautiously optimistic but still reflects ongoing execution risk.

Positive Factors

Strategic partnership

The Lightera collaboration and equity investment is a structural change that strengthens product capabilities and provides capital credibility. It supports OCC’s push into data center and enterprise markets, broadening addressable markets and enabling longer‑term product roadmap and channel expansion.

Top-line momentum

Sustained revenue expansion indicates improving market traction across enterprise and specialty markets. Durable top‑line growth increases scale, helps absorb fixed costs, and creates runway for margin recovery if management sustains sales mix toward higher value data center and connectivity products.

Improved gross margins

A material gross margin recovery to ~31% reflects better pricing, product mix, or manufacturing efficiency. Higher gross margins enhance structural profitability potential and provide room to invest in sales or R&D while still moving toward sustained positive operating margins over the medium term.

Negative Factors

Profitability remains weak

Despite revenue gains, OCC remains unprofitable on a trailing basis and recorded a fiscal year net loss. Persistent negative margins reduce internal funding for growth, limit retained earnings accumulation, and mean the company must demonstrate consistent operating improvements to achieve durable profitability.

Weak cash generation

Negative and volatile operating and free cash flow constrain OCC’s ability to self‑fund working capital, capex, and strategic investments. Over several quarters this increases reliance on external financing, which can dilute returns, limit strategic flexibility, and pressure the balance sheet during demand troughs.

Seasonality & cost pressure

Documented seasonality and higher absolute SG&A spending create execution risk and margin volatility across quarters. Seasonal demand swings complicate capacity and sales planning, and rising operating expenses can erode improvements in gross margin unless revenue growth remains consistent and predictable.

Optical Cable Business Overview & Revenue Model

Company Description

Optical Cable Corporation (OCC) is a leading manufacturer and provider of fiber optic cable and connectivity solutions, primarily serving the telecommunications, data center, and industrial markets. Founded in 1983, OCC specializes in high-performance fiber optic cables, copper cables, and related products that support the growing demand for high-speed data transmission and communications infrastructure. The company offers a range of products including cable assemblies, enclosures, and accessories designed to enhance network performance and reliability.

How the Company Makes Money

OCC makes money primarily by selling manufactured communications cabling and connectivity products to customers and channel partners. Its revenue model is product-sales driven: (1) Fiber optic cable sales—selling various fiber optic cable constructions used in premises, enterprise, and industrial/network applications; (2) Copper communications cable sales—selling copper-based communications cabling used for data/telecommunications infrastructure; and (3) Connectivity and related products—selling associated connectivity hardware and cabling components that complement its cable offerings. Earnings are influenced by demand tied to network build-outs and upgrades (e.g., enterprise/campus infrastructure and data communications projects), product mix (fiber vs. copper and value-added connectivity), pricing and raw-material/input costs, manufacturing efficiency/capacity utilization, and the company’s ability to distribute through sales channels (including distributors/resellers and direct sales, where applicable). Specific material partnerships, customer concentration details, or contract structures: null.

Optical Cable Financial Statement Overview

Summary

Mixed fundamentals: strong TTM revenue growth (~+94%) and improved leverage (debt-to-equity ~0.12) are positives, but profitability is still weak (slightly negative net margin, near break-even EBITDA margin) and cash generation is pressured with negative operating and free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply versus the prior period (about +94%), but profitability remains weak: net margin is slightly negative (~-2%) and EBITDA margin is near break-even (~0.5%). The business has improved materially from the 2024 annual loss profile (deeper negative margins), but it has not yet returned to consistent profitability seen in the stronger 2023 annual period (positive net margin). Overall: strong top-line momentum, but earnings quality and margin durability are the key concern.

Balance Sheet

Leverage looks conservative in TTM (Trailing-Twelve-Months) with low debt relative to equity (debt-to-equity ~0.12), a meaningful improvement versus recent annual levels (~0.53–0.62). Equity remains sizeable versus assets, providing balance-sheet cushion. The main weakness is returns: TTM (Trailing-Twelve-Months) return on equity is negative (driven by losses), highlighting that the capital base is not currently producing acceptable profitability despite the improved leverage profile.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is pressured: operating cash flow is slightly negative and free cash flow is negative, representing a deterioration from the 2025 annual period when both were positive. Cash flow has also been volatile across years (negative in several periods), which reduces confidence in self-funding operations. A positive offset is that free cash flow is less negative than net income in TTM (Trailing-Twelve-Months), but the company still needs to re-establish consistently positive operating cash flow.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	73.73M	73.04M	66.67M	72.17M	69.08M	59.14M
Gross Profit	23.34M	22.60M	18.20M	22.29M	20.51M	16.27M
EBITDA	796.94K	385.24K	-2.16M	4.31M	469.89K	-766.62K
Net Income	-744.57K	-1.45M	-4.21M	2.07M	-347.00K	6.61M
Balance Sheet
Total Assets	38.77M	40.06M	40.36M	43.88M	40.56M	37.92M
Cash, Cash Equivalents and Short-Term Investments	125.87K	237.51K	244.25K	1.47M	216.00K	132.00K
Total Debt	2.56M	11.54M	12.95M	11.00M	10.53M	8.32M
Total Liabilities	17.67M	18.49M	19.52M	19.16M	18.40M	15.71M
Stockholders Equity	18.13M	21.57M	20.84M	24.72M	22.16M	22.21M
Cash Flow
Free Cash Flow	-455.17K	1.12M	-1.23M	-918.52K	-1.89M	1.92M
Operating Cash Flow	-93.55K	1.41M	-857.02K	-395.68K	-1.59M	2.12M
Investing Cash Flow	-405.76K	-317.20K	-67.14K	1.43M	-292.46K	-192.87K
Financing Cash Flow	496.87K	-1.10M	-300.29K	219.80K	1.96M	-1.93M

Optical Cable Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Positive. The current price of 8.51 is above the 20-day moving average (MA) of 6.04, above the 50-day MA of 5.15, and above the 200-day MA of 5.99, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 55.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCC.

Optical Cable Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AIRG	50 Neutral	$49.38M	-7.48	-21.76%	―	-1.53%	55.08%
AMPG	50 Neutral	$64.72M	-106.24	-21.04%	―	93.47%	37.19%
OCC	49 Neutral	$54.20M	-43.52	-7.11%	―	9.55%	65.17%
CMBM	41 Neutral	$35.02M	-0.35	―	―	―	―