Optical Cable (OCC) AI Stock Analysis

• Market Cap: $43.73M
• Dividend Yield: N/A
• Average Volume (3M): 85.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 9.55%
• EPS Growth: 65.17%
• Country: US
• Employees: 339
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): <0.01
• 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: 1.05
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 58.41
• 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: 48 Neutral
• Price Target: $5.00 ▼(-41.25% Downside)

The score is held back primarily by weak financial performance (ongoing losses, negative margins, and uneven cash generation) and bearish technicals (below key moving averages with negative MACD). The latest earnings call provides a partial offset with improving revenue/margins and strategic partnership-driven growth initiatives, but valuation remains constrained by lack of profitability.

Positive Factors

Sustained Revenue Growth

Consistent top-line growth signals strengthening demand for OCC's fiber and connectivity products across telecom, data center, and industrial end markets. Higher sales provide scale that can support margin expansion, product investment, and distributor/OEM relationships over the next several quarters.

Improving Gross Margins

A material pickup in gross profit and margin points to better pricing, product mix or manufacturing efficiencies. Sustained gross margin improvement provides a structural buffer that helps absorb SG&A and supports progress toward profitability as volumes in data center and enterprise channels grow.

Strategic Lightera Partnership & Investment

A partnership plus equity backing from Lightera ties OCC to a larger industry player, facilitating joint product development and market access in data centers. The strategic alignment and capital endorsement can accelerate product adoption and create durable distribution and technology synergies.

Negative Factors

Ongoing Net Losses

Recurring net losses indicate the company has not yet converted revenue growth into sustainable profitability. Continued losses erode equity, constrain reinvestment capacity, and may limit the firm’s ability to fund growth initiatives without dilutive financing or reliance on partners.

Volatile and Weak Cash Generation

Inconsistent operating cash flow and volatile free cash flow reduce financial flexibility and raise refinancing risk. Weak cash conversion hampers capex and working capital funding, making long-term investments and scaling into larger data-center contracts more difficult without external capital.

Negative ROE and Margin Pressure

Negative ROE and persistent negative margins reflect challenges in generating returns from shareholder capital and operational inefficiencies. Without meaningful margin recovery or ROE improvement, the company may struggle to sustain growth while rewarding investors or financing expansion internally.

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 generates revenue primarily through the sales of its fiber optic and copper cable products, which are used in various applications such as telecommunications networks, data centers, and industrial environments. The company has established key revenue streams from both direct sales to end-users and through partnerships with distributors and OEMs (Original Equipment Manufacturers). Additionally, OCC benefits from recurring revenue through the provision of maintenance and support services for its products. Significant partnerships with telecommunication companies, data center operators, and government agencies further bolster its earnings, as these entities require reliable and advanced connectivity solutions to support their operations.

Optical Cable Financial Statement Overview

Summary

Mixed fundamentals: strong recent revenue growth, but persistent losses and negative EBIT/net margins point to weak profitability and operating efficiency. Balance sheet leverage is low, yet negative ROE and volatile/weak cash generation reduce confidence in earnings quality.

Income Statement

Optical Cable's revenue has shown a positive growth trend in recent years, with a notable increase of 47.2% in the latest year. However, profitability remains a concern, as evidenced by negative net profit margins and EBIT margins. The company has struggled to maintain consistent profitability, with net income frequently in the red. Despite a decent gross profit margin, the negative EBIT and net profit margins highlight operational inefficiencies and cost management issues.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.12 in the latest year, indicating manageable leverage. However, the return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE points to inefficiencies in utilizing equity capital effectively.

Cash Flow

Cash flow analysis reveals volatility, with free cash flow growth showing significant fluctuations. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. While the free cash flow to net income ratio is relatively high, it is primarily due to negative net income, which skews the ratio. The company needs to improve its cash generation capabilities to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.69M	73.04M	66.67M	72.17M	69.08M	59.14M
Gross Profit	22.81M	22.60M	18.20M	22.29M	20.51M	16.27M
EBITDA	788.62K	385.24K	-2.16M	4.31M	469.89K	-766.62K
Net Income	-1.13M	-1.45M	-4.21M	2.07M	-347.00K	6.61M
Balance Sheet
Total Assets	40.17M	40.06M	40.36M	43.88M	40.56M	37.92M
Cash, Cash Equivalents and Short-Term Investments	421.41K	237.51K	244.25K	1.47M	216.00K	132.00K
Total Debt	2.59M	2.57M	12.95M	11.00M	10.53M	8.32M
Total Liabilities	18.74M	18.49M	19.52M	19.16M	18.40M	15.71M
Stockholders Equity	21.43M	21.57M	20.84M	24.72M	22.16M	22.21M
Cash Flow
Free Cash Flow	-1.18M	1.12M	-1.23M	-918.52K	-1.89M	1.92M
Operating Cash Flow	-905.33K	1.41M	-857.02K	-395.68K	-1.59M	2.12M
Investing Cash Flow	-257.50K	-317.20K	-67.14K	1.43M	-292.46K	-192.87K
Financing Cash Flow	787.51K	-1.10M	-300.29K	219.80K	1.96M	-1.93M

Optical Cable Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Neutral. The current price of 8.51 is above the 20-day moving average (MA) of 4.53, above the 50-day MA of 5.97, and above the 200-day MA of 5.67, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	51 Neutral	$51.06M	-9.29	-19.65%	―	-1.53%	55.08%
AMPG	50 Neutral	$81.08M	-6.04	-27.13%	―	93.47%	37.19%
OCC	48 Neutral	$43.73M	-25.99	-6.86%	―	9.55%	65.17%
CMBM	41 Neutral	$40.95M	-0.42	―	―	―	―