Optical Cable (OCC) AI Stock Analysis

• Market Cap: $64.82M
• Dividend Yield: N/A
• Average Volume (3M): 85.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 8,831,598
• 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: 0.92
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 68.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $8.00 ▼(-5.99% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily held back by weak financial performance—ongoing losses and negative/volatile cash flow despite strong recent revenue growth and improved leverage. Technicals are a meaningful positive with price above key moving averages and supportive momentum. Valuation remains constrained by negative earnings, while the earnings call adds moderate support via improving gross margin and growth initiatives, tempered by continued net losses and seasonality.

Positive Factors

Strong revenue momentum

A near-doubling of TTM revenue (~+94%) signals durable market traction across enterprise and data channels. Sustained top-line expansion supports scale economics, improves potential operating leverage, and creates runway to invest in higher-margin product lines and channel expansion over the next several quarters.

Conservative leverage and balance-sheet cushion

Very low debt-to-equity (~0.12) provides financial flexibility to fund working capital, product development, or targeted M&A without heavy refinancing risk. This conservative leverage profile reduces default risk and supports multi-quarter resilience while cash flows recover or investments are made into growth initiatives.

Strategic Lightera collaboration and data-center focus

Partnership and equity investment from Lightera aligns product roadmaps toward data center and enterprise segments, expanding total addressable market. Access to partner tech and capital can accelerate higher-margin product introductions and channel credibility over a multi-quarter horizon, structurally enhancing growth optionality.

Negative Factors

Negative and volatile cash generation

Operating and free cash flow being negative and volatile limits the company's ability to self-fund growth, working capital, and capital expenditures. Continued reliance on external financing or equity raises execution risk and could constrain durable investment into capacity for larger data-center contracts.

Ongoing net losses and weak profitability

Persisting net losses reduce retained earnings and hurt return on capital, limiting reinvestment. Until OCC delivers sustained positive margins, profitability constraints will impair the company’s ability to consistently fund growth, reward shareholders, and demonstrate durable unit economics in competitive cabling markets.

Margin pressure from rising SG&A and seasonality

Higher absolute SG&A and recurring seasonality make margins more sensitive to revenue swings. If top-line growth softens in seasonal quarters, fixed selling and personnel costs can quickly erode profitability, making margin improvement contingent on consistent demand rather than one-off revenue gains.

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

Revenue has accelerated sharply in the TTM period (~+94%), and leverage is conservative (debt-to-equity ~0.12), but profitability is still weak (slightly negative net margin, near break-even EBITDA margin). Cash generation is a key drag with negative operating and free cash flow and notable volatility, keeping overall financial quality below average despite balance-sheet improvement.

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	1.00M	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	8.98M	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	21.11M	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: Positive
• 200DMA: Positive
• 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 Positive. The current price of 8.51 is above the 20-day moving average (MA) of 6.47, above the 50-day MA of 5.47, and above the 200-day MA of 6.12, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 50.31 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%
OCC	57 Neutral	$64.82M	-27.50	-3.58%	―	9.55%	65.17%
AIRG	50 Neutral	$48.41M	-7.48	-21.76%	―	-1.53%	55.08%
AMPG	50 Neutral	$70.51M	-106.24	-21.04%	―	93.47%	37.19%
CMBM	41 Neutral	$38.41M	-0.39	―	―	―	―