Omega Flex (OFLX) AI Stock Analysis

• Market Cap: $325.95M
• Dividend Yield: 4.14%
• Average Volume (3M): 21.54K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.82
• Revenue Growth: -6.47%
• EPS Growth: -9.76%
• Country: US
• Employees: 175
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 0.35
• Shares Outstanding: 10,094,322
• 10 Day Avg. Volume: 17,274
• 30 Day Avg. Volume: 21,544
• PEG Ratio: -4.49
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $36.00 ▲( 11.49% Upside)

Omega Flex's overall stock score reflects strong financial performance and a reasonable valuation, tempered by technical analysis suggesting potential bearish trends. The company's strong balance sheet and attractive dividend yield provide a solid investment foundation, but negative revenue and cash flow growth trends are areas of concern.

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, Inc. generates revenue through the design, manufacture, and sale of flexible metal hose and braid products. The company's primary revenue stream is its TracPipe line, which is extensively used in gas piping systems across multiple sectors, including residential, commercial, and industrial markets. Omega Flex leverages its robust distribution network and strategic partnerships with distributors and wholesalers to effectively reach its target customers. Additionally, the company's focus on innovation and quality ensures a competitive edge, allowing it to maintain and grow its market share, thereby contributing significantly to its earnings.

Omega Flex Financial Statement Overview

Summary

Omega Flex demonstrates strong profitability and a stable financial position, with impressive gross and net profit margins and low leverage. However, the declining revenue trend and negative free cash flow growth rate present challenges that need addressing to sustain growth and enhance cash flow generation. The company's effective equity utilization and low debt position provide a solid foundation for future expansion.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
99.80M	101.68M	111.47M	125.49M	130.01M	105.80M
	Gross Profit
60.25M	62.26M	68.36M	78.31M	81.53M	66.55M
	EBIT
20.56M	21.57M	25.80M	31.02M	35.06M	26.65M
	EBITDA
21.53M	22.83M	26.90M	32.11M	36.08M	27.47M
	Net Income Common Stockholders
17.36M	18.01M	20.76M	23.62M	26.20M	19.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.23M	51.70M	46.36M	37.70M	32.91M	23.63M
	Total Assets
102.75M	105.89M	100.23M	97.68M	88.92M	71.57M
	Total Debt
5.17M	5.28M	2.95M	3.21M	3.37M	499.00K
	Net Debt
-44.06M	-46.42M	-43.41M	-34.49M	-29.54M	-23.13M
	Total Liabilities
19.48M	22.71M	21.38M	26.51M	28.37M	25.19M
	Stockholders Equity
83.26M	83.11M	78.69M	70.98M	60.35M	46.12M
Cash Flow		Free Cash Flow
17.61M	18.85M	21.78M	14.30M	24.18M	18.75M
	Operating Cash Flow
19.71M	20.86M	23.42M	15.25M	25.15M	19.31M
	Investing Cash Flow
-2.10M	-2.01M	-1.64M	-942.00K	-971.00K	-564.00K
	Financing Cash Flow
-13.63M	-13.53M	-13.12M	-9.49M	-14.87M	-11.31M

Omega Flex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.29
• 50DMA: Negative
• 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 OFLX, the sentiment is Negative. The current price of 32.29 is above the 20-day moving average (MA) of 32.12, below the 50-day MA of 33.15, and below the 200-day MA of 41.71, indicating a bearish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 27.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFLX.

Omega Flex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	77 Outperform	$401.12M	44.12	8.41%	―	11.22%	229.35%
OFLX	71 Outperform	$325.95M	18.77	21.33%	4.14%	-6.47%	-9.76%
LXFR	71 Outperform	$305.32M	14.22	9.61%	4.64%	1.63%	7162.39%
TAYD	70 Neutral	$115.06M	15.94	15.52%	―	-1.02%	-7.87%
TWIN	67 Neutral	$98.33M	23.85	2.77%	2.22%	11.49%	-66.66%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
PKOH	63 Neutral	$258.12M	6.80	12.58%	2.68%	-0.59%	190.35%