Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $344.82M
• Dividend Yield: 3.98%
• Average Volume (3M): 70.04K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.89
• Revenue Growth: -6.47%
• EPS Growth: -9.76%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 52,051
• 30 Day Avg. Volume: 70,039
• PEG Ratio: -4.99
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.25
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 3.17
• 1Y Price Target: $35.00
• Price Target Upside: 2.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $39.00 ▲(14.17%Upside)

Omega Flex scores well due to its strong financial stability and attractive dividend yield, supported by a strategic dividend policy. Technical indicators suggest a stable stock price, though revenue and cash flow challenges need addressing.

Omega Flex Business Overview & Revenue Model

Company Description

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings, as well as its fittings; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

How the Company Makes Money

Omega Flex makes money through the sale of its flexible metal hose and braid products. These products are used in a wide range of applications, from gas and fluid transportation to structural support in construction. The company's revenue is largely generated from its ability to produce high-quality, durable products that meet specific industry standards and customer requirements. Omega Flex's revenue streams are supported by a diverse customer base that spans multiple industries, including construction, manufacturing, and transportation. The company's financial performance is further bolstered by its strategic partnerships and its reputation for innovation and reliability in the flexible metal hose market.

Omega Flex Financial Statement Overview

Summary

Omega Flex demonstrates strong profitability with solid gross and net profit margins and low leverage. However, challenges exist in declining revenue and negative free cash flow growth, which need addressing for sustainable growth.

Income Statement

Omega Flex's revenue has shown a declining trend, decreasing from $125.5M in 2022 to $99.8M in TTM. The gross profit margin for TTM is 60.39%, which is strong, but the net profit margin has slightly decreased to 17.40% from 17.72% in the previous year. EBIT and EBITDA margins are healthy at 20.60% and 21.58%, respectively. However, the revenue growth rate is negative, indicating a need for improvement in revenue generation.

Balance Sheet

The company maintains a solid financial position, with a low debt-to-equity ratio of 0.06, reflecting minimal leverage. Return on equity is robust at 20.85%, suggesting effective use of equity. The equity ratio is strong at 81.01%, indicating a high proportion of equity financing. Overall, the balance sheet showcases stability and low financial risk.

Cash Flow

Operating cash flow is healthy, with an operating cash flow to net income ratio of 1.13 for TTM, showing good cash conversion. Free cash flow has decreased from $18.85M in 2024 to $17.61M in TTM, leading to a negative free cash flow growth rate, which is a concern. The free cash flow to net income ratio is 1.01, indicating adequate cash generation relative to income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	101.68M	111.47M	125.49M	130.01M	105.80M
Gross Profit	62.26M	68.36M	78.31M	81.53M	66.55M
EBITDA	22.83M	26.90M	32.11M	36.08M	27.47M
Net Income	18.01M	20.76M	23.62M	26.20M	19.91M
Balance Sheet
Total Assets	105.89M	100.23M	97.68M	88.92M	71.57M
Cash, Cash Equivalents and Short-Term Investments	51.70M	46.36M	37.70M	32.91M	23.63M
Total Debt	5.28M	2.95M	3.21M	3.37M	499.00K
Total Liabilities	22.71M	21.38M	26.51M	28.37M	25.19M
Stockholders Equity	83.11M	78.69M	70.98M	60.35M	46.12M
Cash Flow
Free Cash Flow	18.85M	21.78M	14.30M	24.18M	18.75M
Operating Cash Flow	20.86M	23.42M	15.25M	25.15M	19.31M
Investing Cash Flow	-2.01M	-1.64M	-942.00K	-971.00K	-564.00K
Financing Cash Flow	-13.53M	-13.12M	-9.49M	-14.87M	-11.31M

Omega Flex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Neutral. The current price of 34.16 is below the 20-day moving average (MA) of 34.49, above the 50-day MA of 33.35, and below the 200-day MA of 38.62, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 58.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OFLX.

Omega Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	74 Outperform	$597.86M	49.19	10.86%	―	13.13%	164.29%
OFLX	73 Outperform	$344.82M	20.58	21.33%	3.98%	-6.47%	-9.76%
LXFR	72 Outperform	$331.47M	15.43	9.61%	4.27%	1.63%	7162.39%
TAYD	70 Neutral	$144.26M	19.99	15.52%	―	-1.02%	-7.87%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
TWIN	63 Neutral	$127.33M	30.89	2.77%	1.78%	11.49%	-66.66%
PKOH	60 Neutral	$254.00M	6.69	12.58%	2.88%	-0.59%	190.35%

Omega Flex Corporate Events

Omega Flex Holds Annual Shareholders Meeting on June 18

On June 18, 2025, Omega Flex, Inc. held its Annual Meeting of Shareholders where key decisions were made, including the election of three directors, ratification of auditors, approval of an equity incentive plan, and advisory votes on executive compensation. The meeting’s outcomes reflect the company’s ongoing governance and strategic planning efforts, with implications for its operational and financial strategies, particularly through the approval of the Flex-Trac, Inc. 2025 Equity Incentive Plan and the decision to hold ‘Say on Pay’ votes every three years.

Omega Flex Declares Quarterly Dividend for Shareholders

On June 18, 2025, Omega Flex, Inc. announced a regular quarterly dividend of $0.34 per share, payable on July 10, 2025, to shareholders of record as of June 30, 2025. The company’s Board of Directors will consider various factors such as cash needs, financial condition, and potential acquisitions to determine future dividend amounts, indicating a strategic approach to financial management and shareholder returns.