Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $301.82M
• Dividend Yield: 4.98%
• Average Volume (3M): 37.02K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.97
• Revenue Growth: -2.73%
• EPS Growth: -11.67%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 34,805
• 30 Day Avg. Volume: 37,018
• PEG Ratio: -1.73
• Price to Book (P/B): 5.10
• Price to Sales (P/S): 4.17
• P/FCF Ratio: 22.47
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 13.45
• 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: 68 Neutral
• Price Target: $30.00 ▲(10.38% Upside)

Omega Flex's overall stock score is driven by its strong valuation due to a high dividend yield and reasonable P/E ratio. Financial performance is stable but challenged by declining revenue and cash flow growth. Technical analysis shows a bearish trend, which slightly offsets the positive valuation.

Positive Factors

Strong Profitability

High profit margins indicate efficient operations and pricing power, supporting long-term profitability and competitive positioning.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Cash Generation

Strong cash generation relative to net income supports liquidity and the ability to fund operations, dividends, and potential investments.

Negative Factors

Declining Revenue

Significant revenue decline poses a risk to long-term growth and market share, necessitating strategic adjustments to reverse the trend.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to invest in new projects and return capital to shareholders, impacting future growth.

Revenue Growth Challenges

Ongoing revenue growth challenges threaten financial health and require strategic initiatives to sustain long-term business viability.

Omega Flex Business Overview & Revenue Model

Company Description

Omega Flex, Inc. (OFLX) is a leading manufacturer of flexible metal hose and braid products, serving a wide range of industries including aerospace, chemical processing, and oil and gas. The company specializes in the production of custom-engineered solutions that meet the specific needs of its customers, ensuring high quality and reliability. With a strong focus on innovation and customer service, Omega Flex offers a variety of products designed for high-pressure applications, including metal hoses, braid products, and associated fittings.

How the Company Makes Money

Omega Flex generates revenue primarily through the sale of its flexible metal hose and braid products. The company operates on a business-to-business (B2B) model, supplying products to various sectors, including aerospace, chemical processing, and energy industries. Key revenue streams include direct sales to manufacturers and industrial clients, as well as strategic partnerships with distributors and suppliers. The company also benefits from the customization of products to meet specific client needs, allowing for higher margins on specialized orders. Additionally, Omega Flex leverages its expertise in engineering and manufacturing to provide value-added services, further enhancing its earnings potential.

Omega Flex Financial Statement Overview

Summary

Omega Flex demonstrates strong profitability and a solid balance sheet with low leverage and efficient equity utilization. However, the significant decline in revenue and free cash flow growth in the TTM period poses challenges. The company needs to address these growth concerns to maintain its financial health. Overall, Omega Flex is financially stable but faces growth-related risks.

Income Statement

Omega Flex's income statement shows a decline in revenue over the TTM period, with a revenue growth rate of -64.2%. Despite this, the company maintains healthy margins, with a gross profit margin of 61% and a net profit margin of 16.9% in the TTM. The EBIT and EBITDA margins are also strong at 19.9% and 21.2%, respectively. However, the declining revenue trend is a concern and impacts the overall score.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.061 in the TTM, indicating low leverage. The return on equity is robust at 20.5%, showcasing efficient use of equity to generate profits. The equity ratio is solid, suggesting a stable financial structure. Overall, the balance sheet is a strength for Omega Flex, contributing positively to the score.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by -8.5% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 1.50, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.91. While cash flow generation is solid, the negative growth trend affects the overall score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.05M	101.68M	111.47M	125.49M	130.01M	105.80M
Gross Profit	60.67M	62.26M	68.36M	78.31M	81.53M	66.55M
EBITDA	20.09M	22.83M	26.90M	32.11M	36.08M	27.47M
Net Income	16.09M	18.01M	20.76M	23.62M	26.20M	19.91M
Balance Sheet
Total Assets	103.85M	105.89M	100.23M	97.68M	88.92M	71.57M
Cash, Cash Equivalents and Short-Term Investments	49.37M	51.70M	46.36M	37.70M	32.91M	23.63M
Total Debt	4.94M	5.28M	2.95M	3.21M	3.37M	499.00K
Total Liabilities	19.74M	22.71M	21.38M	26.51M	28.37M	25.19M
Stockholders Equity	84.20M	83.11M	78.69M	70.98M	60.35M	46.12M
Cash Flow
Free Cash Flow	17.25M	18.85M	21.78M	14.30M	24.18M	18.75M
Operating Cash Flow	19.43M	20.86M	23.42M	15.25M	25.15M	19.31M
Investing Cash Flow	-2.18M	-2.01M	-1.64M	-942.00K	-971.00K	-564.00K
Financing Cash Flow	-13.73M	-13.53M	-13.12M	-9.49M	-14.87M	-11.31M

Omega Flex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Positive. The current price of 27.18 is below the 20-day moving average (MA) of 27.66, below the 50-day MA of 28.23, and below the 200-day MA of 31.91, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 73.63 is Negative, neither overbought nor oversold. The STOCH value of 85.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OFLX.

Omega Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXFR	73 Outperform	$360.74M	25.52	7.14%	3.80%	3.36%	57.40%
TAYD	70 Neutral	$157.31M	18.94	15.12%	―	-3.64%	-4.12%
OFLX	68 Neutral	$301.82M	18.75	19.37%	4.98%	-2.73%	-11.67%
PKOH	67 Neutral	$331.30M	11.10	8.13%	2.19%	-3.90%	61.80%
TWIN	66 Neutral	$229.20M	655.56	0.22%	1.05%	14.24%	-96.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BW	56 Neutral	$378.10M	-1.90	―	―	-38.45%	-148.99%

Omega Flex Corporate Events

Omega Flex Declares Quarterly Dividend for January 2026

On December 5, 2025, Omega Flex, Inc. announced a regular quarterly dividend of $0.34 per share, payable on January 7, 2026, to shareholders of record as of December 19, 2025. The Board of Directors will review various factors such as the company’s financial condition and capital expenditure plans to determine future dividends, indicating a careful approach to financial management and potential growth strategies.

Omega Flex Declares Quarterly Dividend for October 2025

On September 12, 2025, Omega Flex, Inc. announced a regular quarterly dividend of $0.34 per share, payable on October 8, 2025, to shareholders of record as of September 25, 2025. This decision reflects the company’s ongoing evaluation of its financial condition, operational results, and strategic plans, impacting its financial strategy and shareholder returns.