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Optical Cable (OCC)
:OCC
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Optical Cable
(NASDAQ:OCC)
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Rating:56Neutral
Price Target:
$9.00
▲(8.43% Upside)
Optical Cable's overall stock score is driven by strong earnings call results and technical analysis, but is weighed down by poor financial performance and valuation metrics. The strategic collaboration and improved net income are positive, yet ongoing financial challenges and valuation concerns limit the score.
Optical Cable (OCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.00M
Dividend YieldN/A
Average Volume (3M)97.61K
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth12.67%
EPS Growth80.62%
CountryUS
Employees339
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.04
Shares Outstanding8,870,444
10 Day Avg. Volume64,040
30 Day Avg. Volume97,607
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.91
Price to Sales (P/S)0.28
P/FCF Ratio-15.43
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit2.26
Enterprise Value/Ebitda65.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Optical Cable Business Overview & Revenue Model
Company DescriptionOptical Cable Corporation (OCC) is a leading manufacturer of fiber optic cable and connectivity solutions, primarily serving the telecommunications, data center, and enterprise markets. The company specializes in designing and producing high-performance optical fibers, cables, and connectors that meet the demands of modern data transmission and communication needs. OCC operates in multiple sectors, including telecommunications, military, and industrial applications, providing innovative products that enhance network reliability and speed.
How the Company Makes MoneyOCC generates revenue through the sale of its fiber optic cables, connectors, and related products to various sectors, including telecommunications and data centers. The company has established key revenue streams through direct sales to large telecommunications providers, government contracts, and partnerships with distributors and resellers. Additionally, OCC benefits from recurring revenue through maintenance contracts and service agreements for its products, ensuring ongoing support and upgrades for clients. Strategic partnerships with technology companies and expanding its product offerings to meet the evolving demands of high-speed internet and data transmission also contribute to its earnings.
Optical Cable Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Dec 22, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with significant sales and profit growth. The strategic collaboration with Lightera is expected to drive future growth. Although there were increases in SG&A expenses and a slight decrease in backlog, these were not seen as major concerns. Overall, the sentiment is positive given the company's financial improvements and strategic partnerships.Q3-2025 Updates
Positive Updates
Significant Net Sales Growth
Net sales increased 22.8% during the third quarter of fiscal 2025 compared to the same period last fiscal year and increased 12.8% during the 9 months ended July 31, 2025.
Gross Profit Expansion
Gross profit increased 61.2% or $2.4 million to $6.3 million in the third quarter of fiscal 2025 compared to $3.9 million for the same period last year. Gross profit margin increased to 31.7% in the third quarter of fiscal 2025.
Strategic Collaboration with Lightera
OCC and Lightera entered into a strategic collaboration agreement to expand product offerings and solutions, with Lightera holding 7.24% of the company's outstanding common shares.
Improved Net Income
OCC recorded net income of $302,000 or $0.04 per basic and diluted share for the third quarter of fiscal 2025 compared to a net loss of $1.6 million or $0.20 per basic and diluted share for the third quarter of fiscal 2024.
Negative Updates
Increased SG&A Expenses
SG&A expenses increased to $5.7 million or 9.5% in the third quarter of fiscal year 2025 compared to $5.2 million for the same period last year.
Minimal Backlog Decrease
The sales order backlog decreased slightly by $100,000 from the second quarter, which was described as a leveling rather than a significant decrease.
Company Guidance
During the third quarter of fiscal year 2025, Optical Cable Corporation (OCC) reported a significant 22.8% increase in net sales compared to the same period last year, reaching $19.9 million. This growth was fueled by strong performance in both enterprise and specialty markets. For the first nine months of fiscal 2025, net sales rose by 12.8% to $53.2 million. Gross profit also saw a substantial jump of 61.2% to $6.3 million, resulting in a gross profit margin of 31.7%, up from 24.2% the previous year. The company's SG&A expenses increased to $5.7 million, representing 28.8% of net sales, down from 32.3% last year. OCC recorded a net income of $302,000, or $0.04 per share, a notable turnaround from the net loss of $1.6 million in the third quarter of fiscal 2024. Additionally, the strategic collaboration with Lightera, involving a 7.24% equity investment, is anticipated to further bolster growth opportunities, particularly in the data center and enterprise sectors.Optical Cable Financial Statement Overview
Summary
Optical Cable's financial performance is challenged by negative net profit margins and cash flow issues, despite positive revenue growth and improved leverage.Income Statement
Optical Cable's income statement shows mixed results. The TTM gross profit margin is healthy at 29.6%, indicating efficient production. However, the net profit margin is negative at -4.3%, reflecting ongoing losses. Revenue growth is positive at 5.4%, suggesting some recovery. Despite this, negative EBIT and EBITDA margins highlight operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals moderate financial stability. The debt-to-equity ratio has improved to 0.48, indicating manageable leverage. However, the negative return on equity of -5.6% suggests inefficiencies in generating returns for shareholders. The equity ratio is not provided, but overall, the balance sheet shows a cautious improvement in financial health.55
Neutral
Cash Flow
Cash flow analysis indicates significant challenges. The TTM operating cash flow and free cash flow are both negative, with a concerning free cash flow growth rate of -175.1%. The operating cash flow to net income ratio is low at 0.12, suggesting cash flow issues. Despite a high free cash flow to net income ratio of 0.85, the overall cash flow position remains weak.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.69M | 66.67M | 72.17M | 69.08M | 59.14M | 55.28M |
| Gross Profit | 22.81M | 18.20M | 22.29M | 20.51M | 16.27M | 14.09M |
| EBITDA | 788.62K | -2.16M | 4.31M | 1.55M | -766.62K | -4.11M |
| Net Income | -1.13M | -4.21M | 2.07M | -347.00K | 6.61M | -6.12M |
Balance Sheet | ||||||
| Total Assets | 40.17M | 40.36M | 43.88M | 40.56M | 37.92M | 36.56M |
| Cash, Cash Equivalents and Short-Term Investments | 421.41K | 244.25K | 1.47M | 216.00K | 132.00K | 141.00K |
| Total Debt | 2.59M | 12.95M | 11.00M | 10.53M | 8.32M | 15.14M |
| Total Liabilities | 18.74M | 19.52M | 19.16M | 18.40M | 15.71M | 21.30M |
| Stockholders Equity | 21.43M | 20.84M | 24.72M | 22.16M | 22.21M | 15.26M |
Cash Flow | ||||||
| Free Cash Flow | -1.18M | -1.23M | -918.52K | -1.89M | 1.92M | -3.72M |
| Operating Cash Flow | -905.33K | -857.02K | -395.68K | -1.59M | 2.12M | -3.55M |
| Investing Cash Flow | -257.50K | -67.14K | 1.43M | -292.46K | -192.87K | -168.46K |
| Financing Cash Flow | 787.51K | -300.29K | 219.80K | 1.96M | -1.93M | 3.33M |
Optical Cable Technical Analysis
Negative
8.30
Price Trends
8.24
Negative
6.54
Positive
4.99
Positive
Market Momentum
-0.21
Positive
44.17
Neutral
20.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Negative. The current price of 8.3 is above the 20-day moving average (MA) of 8.21, above the 50-day MA of 8.24, and above the 200-day MA of 4.99, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OCC.
Optical Cable Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $66.00M | ― | -5.41% | ― | 12.67% | 80.62% | |
51 Neutral | $49.16M | -7.04 | -21.97% | ― | 6.84% | 49.74% | |
50 Neutral | $66.66M | ― | -30.53% | ― | 58.04% | 21.09% | |
41 Neutral | $91.51M | -0.92 | ― | ― | ― | ― |
* Technology Sector Average
OCC
Optical Cable
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212.61%
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FKWL
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15.33%
Optical Cable Corporate Events
Optical Cable’s Earnings Call Highlights Robust Growth
Sep 13, 2025
Optical Cable Corporation’s recent earnings call was marked by a positive sentiment, driven by robust sales and profit growth. The company’s strategic partnership with Lightera is expected to further enhance its growth trajectory. While there were some increases in SG&A expenses and a slight decrease in backlog, these were not considered significant concerns. Overall, the sentiment was optimistic, reflecting the company’s financial improvements and strategic initiatives.
Optical Cable Corporation Reports Strong Q3 2025 Results
Sep 12, 2025
Optical Cable Corporation (OCC) is a prominent manufacturer of fiber optic and copper data communication cabling and connectivity solutions, catering primarily to enterprise and specialty markets, including military and severe duty environments.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.