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Optical Cable Corp. (OCC)
NASDAQ:OCC
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Optical Cable
(NASDAQ:OCC)
Rating:48Neutral
Price Target:
$3.00
▲(3.45%Upside)
Optical Cable (OCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.86M
Dividend YieldN/A
Average Volume (3M)26.16K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth5.77%
EPS Growth29.54%
CountryUS
Employees339
SectorTechnology
Sector Strength86
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.09
Shares Outstanding8,228,245
10 Day Avg. Volume31,652
30 Day Avg. Volume26,156
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)1.18
Price to Sales (P/S)0.00
P/FCF Ratio15.19
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda-3.68
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, 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 MoneyOptical 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 Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q2-2025)
| % Change Since: -8.23%|
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong performance in terms of sales and gross profit growth, along with a reduced net loss and increased sales backlog, signaling a positive trend. However, the increase in SG&A expenses and limited growth in the data center market present challenges. Overall, the positive aspects significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Sales and Net Sales Growth
Consolidated net sales for the second quarter of fiscal 2025 increased 8.9% to $17.5 million compared to $16.1 million for the same period last year. Sequentially, net sales increased 11.5% from the first quarter of fiscal 2025.
Gross Profit Increase
Gross profit increased 32.1% or $1.3 million to $5.3 million in the second quarter of fiscal 2025 compared to $4 million for the same period last year. Gross profit margin increased to 30.4% from 25.1% year-over-year.
Reduced Net Loss
Recorded a net loss of $698,000 for the second quarter of fiscal 2025, a significant improvement from a net loss of $1.6 million in the second quarter of fiscal 2024.
Increased Sales Backlog
Sales backlog increased to $7.2 million at the end of the second quarter of fiscal 2025, up from $6.6 million at the end of the first quarter of fiscal 2025 and $5.7 million at the end of fiscal 2024.
Negative Updates
SG&A Expenses Increase
SG&A expenses increased to $5.7 million in the second quarter of fiscal year 2025 compared to $5.3 million for the same period last year, primarily due to employee and contracted sales personnel-related costs and shipping costs.
Limited Data Center Market Growth
While there is some movement in data center opportunities, it has not been a major part of sales. Most growth is seen in military markets rather than data centers.
Company Guidance
In the guidance provided during the Optical Cable Corporation's second-quarter earnings call for fiscal year 2025, several key metrics were highlighted. The company reported an 8.9% increase in consolidated net sales, reaching $17.5 million compared to $16.1 million in the same period last year. Sequentially, net sales rose by 11.5% from the first quarter of fiscal 2025. The sales order backlog also showed growth, rising to $7.2 million from $6.6 million at the end of the first fiscal quarter and $5.7 million as of October 31, 2024. The gross profit increased by 32.1% to $5.3 million, with the gross profit margin climbing to 30.4% from 25.1% a year earlier. The company recorded a net loss of $698,000, or $0.09 per share, a significant improvement from the $1.6 million loss, or $0.21 per share, reported in the previous year. SG&A expenses increased to $5.7 million, but the expenses as a percentage of net sales slightly decreased to 32.7%. The company emphasized its focus on executing growth strategies and capitalizing on operating efficiencies, anticipating further opportunities for gross profit margin expansion.Optical Cable Financial Statement Overview
Summary
Optical Cable faces significant financial challenges. The income statement reveals negative net income and EBIT margins, despite a slight revenue growth. The balance sheet shows high debt reliance, and cash flows are mixed with negative free cash flow growth. Overall, financial stability is a concern, driven by ongoing losses and high leverage.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.35
Negative
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.45
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.00M | 66.67M | 72.17M | 69.08M | 59.14M | 55.28M |
| Gross Profit | 20.41M | 18.20M | 22.29M | 20.51M | 16.27M | 14.09M |
| EBITDA | -997.20K | -2.16M | 4.31M | 1.55M | -766.62K | -4.11M |
| Net Income | -2.99M | -4.21M | 2.07M | -347.00K | 6.61M | -6.12M |
Balance Sheet | ||||||
| Total Assets | 39.07M | 40.36M | 43.88M | 40.56M | 37.92M | 36.56M |
| Cash, Cash Equivalents and Short-Term Investments | 894.28K | 244.25K | 1.47M | 216.00K | 132.00K | 141.00K |
| Total Debt | 9.10M | 10.95M | 11.00M | 10.53M | 8.32M | 15.14M |
| Total Liabilities | 19.96M | 19.52M | 19.16M | 18.40M | 15.71M | 21.30M |
| Stockholders Equity | 19.12M | 20.84M | 24.72M | 22.16M | 22.21M | 15.26M |
Cash Flow | ||||||
| Free Cash Flow | 1.57M | -1.23M | -918.52K | -1.89M | 1.92M | -3.72M |
| Operating Cash Flow | 1.85M | -857.02K | -395.68K | -1.59M | 2.12M | -3.55M |
| Investing Cash Flow | -193.48K | -67.14K | 1.43M | -292.46K | -192.87K | -168.46K |
| Financing Cash Flow | -1.85M | -300.29K | 219.80K | 1.96M | -1.93M | 3.33M |
Optical Cable Technical Analysis
Neutral
2.90
Price Trends
2.90
Negative
3.27
Negative
3.15
Negative
Market Momentum
-0.03
Negative
54.75
Neutral
73.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Neutral. The current price of 2.9 is above the 20-day moving average (MA) of 2.78, below the 50-day MA of 2.90, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 73.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCC.
Optical Cable Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $40.67M | ― | -18.07% | ― | -13.83% | -476.23% | |
65 Neutral | $23.68M | 37.80 | 0.06% | ― | -14.64% | -97.84% | |
59 Neutral | $28.55M | ― | -14.35% | ― | -18.88% | -534.79% | |
57 Neutral | $1.14B | 27.27 | -27.06% | 12.35% | 10.83% | -5.57% | |
54 Neutral | $21.19M | ― | -86.92% | ― | -9.33% | 74.24% | |
48 Neutral | $23.86M | ― | -14.60% | ― | 5.77% | 29.54% |
* Technology Sector Average
Performance Comparison
OCC
Optical Cable
2.90
0.19
7.01%
DAIO
Data I/O
3.09
0.34
12.36%
TRT
Trio-Tech International
5.49
-0.56
-9.26%
CPSH
CPS Technologies
2.80
1.07
61.85%
CXAI
CXApp
1.02
-0.99
-49.25%
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.