Optical Cable (OCC) AI Stock Analysis

Compare

108 Followers

OCC Dividends

Top Page

Optical Cable

(NASDAQ:OCC)

52Neutral

Optical Cable Corporation is currently facing significant financial performance challenges, with persistent net losses and negative margins. While there are positive trends in sales and market recovery, these are offset by valuation challenges and inconsistent cash flow. The technical analysis suggests a bearish trend, but there is potential for short-term recovery. The overall score reflects these mixed signals, with notable strengths in operational improvements and growth strategies.

Optical Cable (OCC) vs. S&P 500 (SPY)

Market Cap

$25.17M

Dividend YieldN/A

Average Volume (3M)19.45K

Price to Earnings (P/E)―

Beta (1Y)0.97

Revenue Growth-1.72%

EPS Growth-1591.92%

CountryUS

Employees339

SectorTechnology

Sector Strength69

IndustryCommunication Equipment

Share Statistics

EPS (TTM)-0.50

Shares Outstanding8,198,577

10 Day Avg. Volume15,007

30 Day Avg. Volume19,450

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.94

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.68

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Optical Cable Business Overview & Revenue Model

Company DescriptionOptical Cable Corporation (OCC) is a leading manufacturer and provider of fiber optic and copper data communication cabling and connectivity solutions. The company serves a wide array of sectors including enterprise, industrial, military, and broadcast markets. OCC specializes in providing high-quality, reliable products designed to support complex communication infrastructures, ensuring robust data transfer and connectivity.

How the Company Makes MoneyOCC generates revenue primarily through the sale of its extensive range of fiber optic and copper cable products and connectivity solutions. The company caters to diverse industries that require durable and high-performance communication infrastructure, such as telecommunications, data centers, and military operations. OCC benefits from long-term contracts and partnerships with key players in these sectors, which contribute significantly to its revenue. Additionally, the company's focus on innovation and custom solutions allows it to capture niche markets and maintain a competitive edge in the industry.

Optical Cable Financial Statement Overview

Summary

Optical Cable faces profitability challenges with persistent net losses and negative margins. While the balance sheet shows some improvement in leverage, the company's cash flow generation is inconsistent. Sustained revenue growth and improved operational efficiency are critical for future stability.

Income Statement

Neutral

The income statement shows a declining revenue trend with a negative net profit margin, indicating operational challenges. Gross profit margin is positive but insufficient to cover operating expenses, leading to negative EBIT and EBITDA margins. Recent TTM data shows a slight revenue increase, but profitability remains an issue.

Balance Sheet

Neutral

The balance sheet reflects moderate leverage with a decreasing debt-to-equity ratio, which is a positive sign. However, equity ratio is not optimal, and return on equity is negative due to consistent net losses. The company's asset base is shrinking, indicating potential long-term sustainability concerns.

Cash Flow

Neutral

Cash flow analysis indicates improvement in free cash flow, turning positive in the TTM period after negative figures in preceding years. However, the operating cash flow to net income ratio remains volatile, reflecting inconsistent cash generation relative to reported earnings.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
66.67M	72.17M	69.08M	59.14M	55.28M
	Gross Profit
18.20M	22.29M	20.51M	16.27M	14.09M
	EBIT
-3.38M	993.08K	473.00K	-1.97M	-5.53M
	EBITDA
-2.16M	4.31M	1.55M	-766.62K	-4.11M
	Net Income Common Stockholders
-4.21M	2.07M	-347.00K	6.61M	-6.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
244.25K	1.47M	216.00K	132.00K	141.00K
	Total Assets
40.36M	43.88M	40.56M	37.92M	36.56M
	Total Debt
10.95M	11.00M	10.53M	8.32M	15.14M
	Net Debt
10.71M	9.53M	10.31M	8.19M	14.99M
	Total Liabilities
19.52M	19.16M	18.40M	15.71M	21.30M
	Stockholders Equity
20.84M	24.72M	22.16M	22.21M	15.26M
Cash Flow		Free Cash Flow
-1.23M	-918.52K	-1.89M	1.92M	-3.72M
	Operating Cash Flow
-857.02K	-395.68K	-1.59M	2.12M	-3.55M
	Investing Cash Flow
-67.14K	1.43M	-292.46K	-192.87K	-168.46K
	Financing Cash Flow
-300.29K	219.80K	1.96M	-1.93M	3.33M

Optical Cable Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.07

Price Trends

50DMA

3.22

Negative

100DMA

3.67

Negative

200DMA

3.12

Negative

Market Momentum

MACD

-0.05

Negative

RSI

52.81

Neutral

STOCH

67.39

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 3.07 is above the 20-day moving average (MA) of 2.85, below the 50-day MA of 3.22, and below the 200-day MA of 3.12, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 67.39 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	61 Neutral	$24.40M	―	-18.07%	―	-13.83%	-476.23%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
TRT	56 Neutral	$22.11M	39.54	1.86%	―	-6.15%	-36.60%
OCC	52 Neutral	$25.17M	―	-18.07%	―	-1.72%	-1591.92%
DAIO	50 Neutral	$21.62M	―	-14.35%	―	-18.88%	-534.79%
CXAI	49 Neutral	$21.79M	―	-94.70%	―	-3.04%	65.43%

* Technology Sector Average

Performance Comparison

OCC

Optical Cable

3.07

0.27

9.64%

DAIO

Data I/O

2.34

-0.63

-21.21%

TRT

Trio-Tech International

5.20

-1.05

-16.80%

CPSH

CPS Technologies

1.60

-0.14

-8.05%

CXAI

CXApp

1.17

-2.61

-69.05%

Optical Cable Earnings Call Summary

Earnings Call Date:Mar 10, 2025

(Q1-2025)

% Change Since: -22.08%|

Next Earnings Date:Jun 16, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a positive trajectory in net sales, gross profit, international sales, and a growing backlog, suggesting operational improvements and market recovery. However, challenges remain with increased SG&A expenses and ongoing net losses, albeit reduced compared to the previous year. The sentiment leans positive due to the significant improvements outweighing the challenges.

Q1-2025 Updates

Positive Updates

Growth in Net Sales and Gross Profit

Net sales increased 6% to $15.7 million, and gross profit increased 24.6% or $913,000 to $4.6 million in the first quarter of fiscal 2025 compared to the same period last year.

Increased Sales Order Backlog

Sales order backlog and forward load increased approximately 16% to $6.6 million compared to October 31, 2024.

Improvements in Military and Specialty Markets

The company saw improvements and strength in both enterprise and specialty markets, including the military sector.

International Sales Growth

Net sales to customers outside of the United States increased 21.3% in the first quarter of fiscal 2025 compared to the same period last year.

Negative Updates

Increased SG&A Expenses

SG&A expenses increased to $5.5 million from $5.1 million in the same period last year, primarily due to increases in employee and contracted sales personnel-related costs.

Net Loss Reduction but Continued Losses

OCC recorded a net loss of $1.1 million or $0.14 per share, though this was an improvement from a net loss of $1.4 million or $0.18 per share in the previous year.

Impact of Seasonality

The first quarter was impacted by typical seasonality factors, which may also affect the second quarter.

Company Guidance

During the first quarter of fiscal year 2025, Optical Cable Corporation reported growth in key metrics, notably a 6% increase in net sales to $15.7 million and a 24.6% increase in gross profit to $4.6 million compared to the same period last year. The company also experienced a rise in gross profit margin to 29.4%, up from 25% in the first quarter of fiscal 2024, benefiting from production efficiencies and operating leverage. Sales order backlog increased by approximately 16% to $6.6 million from October 31, 2024. Despite these positive trends, SG&A expenses rose to $5.5 million, contributing to a net loss of $1.1 million, or $0.14 per share, an improvement from the previous year's loss of $1.4 million, or $0.18 per share. The company remains optimistic about future growth, driven by improvements in both enterprise and specialty markets and its continued focus on executing growth strategies efficiently.

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.