Optical Cable (OCC) AI Stock Analysis

• Market Cap: $49.41M
• Dividend Yield: N/A
• Average Volume (3M): 85.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• 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: 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: 1.19
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 152.83
• 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: 48 Neutral
• Price Target: $5.50 ▼(-35.37% Downside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 01/28/26

The score is held back primarily by weak financial performance (ongoing losses, negative margins, and uneven cash generation) and bearish technicals (below key moving averages with negative MACD). The latest earnings call provides a partial offset with improving revenue/margins and strategic partnership-driven growth initiatives, but valuation remains constrained by lack of profitability.

Positive Factors

Revenue & gross profit improvement

Improving gross profit and margin reflect better product mix, pricing or manufacturing efficiency. Sustained margin expansion supports reinvestment capacity and underwriting of operating leverage as OCC targets data center and enterprise demand, improving durability of future profitability.

Strategic collaboration with Lightera

A strategic partner-investor relationship with Lightera materially enhances OCC's product roadmap and market access into data-center and enterprise segments. Equity investment and technical collaboration can accelerate product development, improve credibility with large customers and drive structural revenue growth.

Low leverage / stable capital structure

A low debt-to-equity ratio gives OCC financial flexibility to fund working capital, capex, and strategic initiatives without heavy interest burdens. This capital structure reduces bankruptcy risk and supports multi-quarter investments needed for scaling data-center and enterprise product programs.

Negative Factors

Persistent net losses

Ongoing net losses indicate the business has not yet converted top-line gains into sustainable profitability. Persistent losses erode equity, limit internal funding for growth, and require sustained margin improvement or external capital to reach durable positive earnings and returns for shareholders.

Volatile and weak cash generation

Inconsistent operating cash flows and poor conversion of earnings into cash constrain the company's ability to self-fund growth, manage inventory, and absorb cyclical demand swings. Weak cash generation increases reliance on financing and raises execution risk over the medium term.

Seasonality affecting sales

Pronounced seasonal swings create uneven revenue and margin realization across the year, complicating capacity utilization, staffing and supply-chain planning. Structural seasonality can depress annualized utilization and slow scaling of fixed-cost leverage in manufacturing and sales functions.

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

Mixed fundamentals: strong recent revenue growth, but persistent losses and negative EBIT/net margins point to weak profitability and operating efficiency. Balance sheet leverage is low, yet negative ROE and volatile/weak cash generation reduce confidence in earnings quality.

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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	73.04M	66.67M	72.17M	69.08M	59.14M
Gross Profit	22.60M	18.20M	22.29M	20.51M	16.27M
EBITDA	385.24K	-2.16M	4.31M	469.89K	-766.62K
Net Income	-1.45M	-4.21M	2.07M	-347.00K	6.61M
Balance Sheet
Total Assets	40.06M	40.36M	43.88M	40.56M	37.92M
Cash, Cash Equivalents and Short-Term Investments	237.51K	244.25K	1.47M	216.00K	132.00K
Total Debt	11.54M	12.95M	11.00M	10.53M	8.32M
Total Liabilities	18.49M	19.52M	19.16M	18.40M	15.71M
Stockholders Equity	21.57M	20.84M	24.72M	22.16M	22.21M
Cash Flow
Free Cash Flow	1.12M	-1.23M	-918.52K	-1.89M	1.92M
Operating Cash Flow	1.41M	-857.02K	-395.68K	-1.59M	2.12M
Investing Cash Flow	-317.20K	-67.14K	1.43M	-292.46K	-192.87K
Financing Cash Flow	-1.10M	-300.29K	219.80K	1.96M	-1.93M

Optical Cable Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 8.51 is above the 20-day moving average (MA) of 5.63, above the 50-day MA of 5.13, and above the 200-day MA of 5.90, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.51 is Neutral, 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%
AIRG	50 Neutral	$51.34M	-7.76	-19.65%	―	-1.53%	55.08%
AMPG	50 Neutral	$67.49M	-5.24	-27.13%	―	93.47%	37.19%
OCC	48 Neutral	$49.41M	-29.36	-6.86%	―	9.55%	65.17%
CMBM	41 Neutral	$31.63M	-0.32	―	―	―	―