Optical Cable (OCC) AI Stock Analysis

• Market Cap: $44.08M
• Dividend Yield: N/A
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• 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: 160,864
• 30 Day Avg. Volume: 79,896
• 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: 0.90
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 50.43
• 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: 42 Neutral
• Price Target: $5.00 ▼(-41.25% Downside)

Optical Cable's overall stock score is primarily impacted by its financial performance and technical analysis. Despite strong revenue growth, profitability and cash flow issues weigh heavily. Technical indicators show bearish momentum, further dampening the outlook. Valuation metrics are unattractive due to ongoing losses. The earnings call provided some optimism for future growth, but current challenges dominate the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for OCC's products, enhancing its competitive position and long-term sustainability.

Strategic Collaboration

The collaboration with Lightera is expected to drive growth in the data center sector, leveraging synergies and expanding market reach.

Gross Profit Margin Improvement

Improved gross profit margins reflect better cost management and pricing power, supporting long-term profitability and financial health.

Negative Factors

Net Loss

Ongoing net losses highlight challenges in achieving profitability, which could hinder investment and growth opportunities.

Cash Flow Volatility

Volatile cash flows can limit OCC's ability to invest in growth initiatives and manage operational expenses effectively.

SG&A Expenses Increase

Rising SG&A expenses indicate cost pressures that could impact margins and require improved operational efficiency.

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

Optical Cable shows strong revenue growth but struggles with profitability and cash flow stability. The balance sheet is healthy with low leverage, but the company faces challenges in generating returns on equity. Improving operational efficiency and cash flow generation will be crucial for enhancing overall financial health.

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: Negative
• Last Price: 8.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 8.51 is above the 20-day moving average (MA) of 7.98, above the 50-day MA of 7.89, and above the 200-day MA of 5.46, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 29.64 is Positive, neither overbought nor oversold. The STOCH value of 4.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
AMPG	58 Neutral	$63.36M	-5.93	-27.13%	―	93.47%	37.19%
AIRG	51 Neutral	$48.07M	-7.79	-19.65%	―	-1.53%	55.08%
OCC	42 Neutral	$44.08M	-24.46	-6.86%	―	9.55%	65.17%
CMBM	41 Neutral	$45.75M	-0.43	―	―	―	―

Optical Cable Corporate Events

Optical Cable’s Earnings Call Highlights Robust Growth

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

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.