Optical Cable (OCC) AI Stock Analysis

• Market Cap: $39.50M
• Dividend Yield: N/A
• Average Volume (3M): 515.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 5.77%
• EPS Growth: 29.54%
• Country: US
• Employees: 339
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): -0.09
• Shares Outstanding: 8,228,245
• 10 Day Avg. Volume: 398,987
• 30 Day Avg. Volume: 515,976
• PEG Ratio: -0.58
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.02
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: -6.13
• 1Y Price Target: $3.00
• Price Target Upside: -38.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $5.00 ▲(2.04%Upside)

Optical Cable's score is primarily constrained by financial challenges and negative valuation metrics. Positive technical indicators and a constructive earnings call offer some support, but the risks associated with ongoing losses and operational inefficiencies weigh heavily on the overall score.

Optical Cable Business Overview & Revenue Model

Company Description

Optical Cable Corporation, together with its subsidiaries, manufactures and sells fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic and hybrid cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions. Its fiber optic connectivity products include fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories; and copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for equipment rooms, telecommunications closets, data centers, and workstation applications. In addition, it offers network, data storage, and telecommunications management systems, such as data cabinets, wall mount enclosures, horizontal and vertical cable management systems, and open frame relay racks for enterprise and residential use; and datacom wiring products, including various enclosures, and modules and modular outlets for single dwelling and multiple dwelling residential uses. Further, the company provides specialty fiber optic connectors and connectivity components, copper datacom connectors, and related systems and solutions for military, other harsh environment, and special applications. It sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was incorporated in 1983 and is headquartered in Roanoke, Virginia.

How the Company Makes Money

Optical Cable Corporation makes money by designing, manufacturing, and selling a wide array of fiber optic and copper cabling products. Its revenue model primarily revolves around direct sales to end-users, distributors, and system integrators across various industries. The company generates revenue through the sale of its core products, which include fiber optic cables, copper cables, and connectivity components. In addition to direct sales, OCC may engage in strategic partnerships and collaborations to expand its market reach and product offerings, enhancing its revenue streams. The company's earnings are also supported by its focus on innovation and quality, enabling it to maintain a competitive edge and cater to the evolving needs of its customers.

Optical Cable Financial Statement Overview

Summary

Optical Cable is facing financial challenges, with ongoing losses and negative profitability margins despite some revenue growth. Operational inefficiencies and high leverage are significant risks, although there is some strength in cost management with a gross profit margin of 29.6%.

Income Statement

The income statement shows a concerning trend, with negative net income and EBIT margins in the TTM period, indicating operational challenges. There was a slight revenue growth of 3.5% in TTM compared to the previous year, but it was not sufficient to overcome the decline in profitability. The gross profit margin stands at 29.6%, reflecting some strength in cost management, but the negative net profit margin of -4.3% highlights ongoing struggles with operating expenses and cost efficiency.

Balance Sheet

The balance sheet reveals a moderate level of financial stability. The debt-to-equity ratio is relatively high at 0.48, suggesting a significant reliance on debt financing. However, the equity ratio of 48.9% indicates a balanced structure of liabilities and equity. Return on equity is negative due to net losses, highlighting inefficiencies in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals mixed results. The company achieved a positive operating cash flow in the TTM period, reflecting some operational cash generation capability. However, the free cash flow growth rate is negative compared to the previous period, indicating challenges in maintaining free cash flow. The operating cash flow to net income ratio suggests some improvement in cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-2.16M	4.31M	1.55M	-766.62K	-4.11M
Net Income	-4.21M	2.07M	-347.00K	6.61M	-6.12M
Balance Sheet
Total Assets	40.36M	43.88M	40.56M	37.92M	36.56M
Cash, Cash Equivalents and Short-Term Investments	244.25K	1.47M	216.00K	132.00K	141.00K
Total Debt	10.95M	11.00M	10.53M	8.32M	15.14M
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 Price: 4.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.9 is above the 20-day moving average (MA) of 4.43, above the 50-day MA of 3.49, and above the 200-day MA of 3.33, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 18.83 is Positive, 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
TRT	66 Neutral	$23.25M	37.80	0.06%	―	-14.64%	-97.84%
CPSH	61 Neutral	$36.61M	―	-18.07%	―	-13.83%	-476.23%
DAIO	59 Neutral	$29.38M	―	-14.35%	―	-18.88%	-534.79%
Sector *	57 Neutral	HK$14.37B	5.81	-5.77%	4.75%	9.65%	-43.80%
OCC	54 Neutral	$39.50M	―	-14.60%	―	5.77%	29.54%
CXAI	51 Neutral	$23.27M	―	-86.92%	―	-9.33%	74.24%

Optical Cable Corporate Events

Optical Cable Secures $2M Investment from Lightera

On July 7, 2025, Optical Cable Corporation entered into a Stock Purchase Agreement with Lightera, LLC, under which Lightera invested $2 million to acquire a 7.24% stake in OCC. This strategic collaboration aims to expand product offerings, particularly in the data center and enterprise sectors, leveraging the strengths of both companies to deliver integrated cabling and connectivity solutions. The agreement includes Put and Call Rights for share repurchase, providing flexibility and liquidity for both parties. This partnership is expected to enhance OCC’s market presence and accelerate sales growth, creating significant value for shareholders.