Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $356.23M
• Dividend Yield: 3.85%
• Average Volume (3M): 23.07K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.96
• Revenue Growth: -4.53%
• EPS Growth: -11.25%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 20,796
• 30 Day Avg. Volume: 23,065
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 4.58
• Enterprise Value/Ebitda: 13.16
• 1Y Price Target: $37.00
• Price Target Upside: 4.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $37.00 ▲(4.85% Upside)

Omega Flex's overall stock score is driven by its strong financial performance, characterized by high profitability and a robust balance sheet. The technical analysis presents a mixed outlook, with short-term strength but potential long-term challenges. Valuation metrics are favorable, with a reasonable P/E ratio and an attractive dividend yield. The recent dividend announcement further supports the company's commitment to shareholder returns.

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 generates revenue primarily through the sale of its flexible metal hoses and braid products. Key revenue streams include direct sales to end-users in various sectors, as well as partnerships with distributors and OEMs (Original Equipment Manufacturers) who integrate Omega's products into their own systems. The company benefits from a diverse customer base, which helps mitigate risks associated with reliance on a single market segment. Additionally, Omega Flex's focus on custom-engineered solutions allows it to command premium pricing for specialized products, thereby enhancing its profitability. The company's established reputation for quality and reliability further contributes to repeat business and long-term contracts, providing a stable revenue foundation.

Omega Flex Financial Statement Overview

Summary

Omega Flex demonstrates strong profitability with high profit margins and efficient operations despite declining revenues. The balance sheet is robust with low leverage, and cash flow generation is stable, though growth opportunities may be limited by stagnant free cash flow.

Income Statement

Omega Flex's income statement indicates strong profitability with a TTM gross profit margin of 61.0% and a net profit margin of 16.9%. However, the revenue growth rate has been negative over the past two years, showing a decline of 9.7% from 2022 to 2023 and a further 9.0% decline in the TTM period. The EBIT and EBITDA margins remain robust at 19.9% and 20.9%, respectively, which reflects efficient cost management and operational stability despite declining revenues.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.06, indicating low leverage and financial risk. The equity ratio stands at 81.7%, showcasing a solid equity base relative to total assets. Return on equity is healthy at 20.3%, highlighting effective utilization of equity to generate profits. Overall, Omega Flex maintains a stable and low-risk financial position.

Cash Flow

Omega Flex demonstrates a stable cash flow profile with a positive operating cash flow to net income ratio of 1.22, indicating efficient cash conversion. The free cash flow to net income ratio is robust at 1.11, supporting the company's ability to generate cash beyond its profit levels. However, the free cash flow growth rate is stagnant due to flat capital expenditures, which may hinder future expansion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.70M	101.68M	111.47M	125.49M	130.01M	105.80M
Gross Profit	61.44M	62.26M	68.36M	78.31M	81.53M	66.55M
EBITDA	21.36M	22.83M	26.90M	32.11M	36.08M	27.47M
Net Income	17.02M	18.01M	20.76M	23.62M	26.20M	19.91M
Balance Sheet
Total Assets	102.78M	105.89M	100.23M	97.68M	88.92M	71.57M
Cash, Cash Equivalents and Short-Term Investments	50.73M	51.70M	46.36M	37.70M	32.91M	23.63M
Total Debt	5.14M	5.28M	2.95M	3.21M	3.37M	499.00K
Total Liabilities	18.82M	22.71M	21.38M	26.51M	28.37M	25.19M
Stockholders Equity	84.00M	83.11M	78.69M	70.98M	60.35M	46.12M
Cash Flow
Free Cash Flow	18.86M	18.85M	21.78M	14.30M	24.18M	18.75M
Operating Cash Flow	20.76M	20.86M	23.42M	15.25M	25.15M	19.31M
Investing Cash Flow	-1.90M	-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: 35.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.29 is above the 20-day moving average (MA) of 33.95, above the 50-day MA of 33.93, and below the 200-day MA of 36.44, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, 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	77 Outperform	$361.32M	14.66	11.89%	3.93%	5.60%	―
OFLX	72 Outperform	$356.23M	20.46	20.68%	3.85%	-4.53%	-11.25%
TAYD	70 Neutral	$159.31M	17.03	16.62%	―	3.84%	13.91%
GHM	69 Neutral	$526.62M	37.82	11.97%	―	14.64%	182.19%
TWIN	68 Neutral	$169.91M	29.82	-1.19%	1.22%	15.45%	-117.28%
PKOH	64 Neutral	$285.31M	8.22	11.16%	2.54%	-2.82%	69.68%
Sector *	64 Neutral	$10.73B	15.65	7.58%	2.01%	2.80%	-14.92%

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.