Syntec Optics Holdings (OPTX) AI Stock Analysis

• Market Cap: $66.04M
• Dividend Yield: N/A
• Average Volume (3M): 77.26K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 0.10
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 148
• Sector: Financial
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.06
• Shares Outstanding: 36,688,267
• 10 Day Avg. Volume: 115,191
• 30 Day Avg. Volume: 77,264
• PEG Ratio: 108.21
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.91
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 8.80
• Enterprise Value/Ebitda: 7.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ―

Overall, Syntec Optics Holdings is facing significant financial difficulties, with declining revenues and profitability issues. Technical indicators provide mixed signals, with some potential for support. The lack of positive valuation metrics further weighs on the stock's appeal. Strategic adjustments are necessary to improve financial health and investor sentiment.

Syntec Optics Holdings Business Overview & Revenue Model

Company Description

Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.

How the Company Makes Money

Syntec Optics Holdings generates revenue primarily through the manufacturing and sale of optical components and assemblies to various industries, including defense, medical, and consumer electronics. The company earns money by providing custom solutions tailored to specific client needs, often involving high-precision and technologically advanced products. Revenue streams also include long-term contracts with key clients, partnerships with other technology companies, and potential government contracts, especially in the defense sector. Factors contributing to its earnings include the company's reputation for quality and innovation, as well as its ability to meet the stringent requirements of industries that rely on precision optics.

Syntec Optics Holdings Financial Statement Overview

Summary

Syntec Optics Holdings faces substantial financial challenges. The income statement shows declining revenues and profitability issues, the balance sheet reveals a balanced but strained financial position, and the cash flow statement underscores significant cash generation challenges.

Income Statement

The income statement shows a challenging financial period for Syntec Optics Holdings. The TTM data indicates a negative net income and EBIT, which suggests profitability issues. The gross profit margin stands at 23.22%, down from the previous year, indicating a squeeze on margins. Revenue has declined by 2.99% compared to the previous year, signaling potential demand issues or competitive pressures. Despite these challenges, the EBITDA margin of 6.93% provides some resilience in cash flow generation.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 0.93, indicating a balanced approach to leveraging. However, the return on equity is negative at -2.17% due to the net loss, which is a concern for profitability. The equity ratio is 44.38%, reflecting a reasonable proportion of equity financing, but the decreasing stockholders' equity suggests potential strain.

Cash Flow

The cash flow analysis indicates significant challenges with a negative free cash flow of -$1.64 million in the TTM period, compared to positive cash flow in the prior year. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting earnings to cash. The free cash flow to net income ratio also highlights issues in cash generation relative to earnings.

Breakdown	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.44M	27.84M	26.62M
Gross Profit	7.92M	6.13M	6.59M
EBITDA	4.68M	2.89M	4.64M
Net Income	1.98M	-434.57K	3.25M
Balance Sheet
Total Assets	26.55M	22.46M	27.31M
Cash, Cash Equivalents and Short-Term Investments	2.16M	526.18K	2.30M
Total Debt	8.93M	10.00M	12.67M
Total Liabilities	13.48M	13.00M	17.14M
Stockholders Equity	13.06M	9.46M	10.17M
Cash Flow
Free Cash Flow	871.04K	687.08K	85.76K
Operating Cash Flow	2.79M	1.93M	4.10M
Investing Cash Flow	-1.92M	-685.43K	-4.05M
Financing Cash Flow	761.02K	-3.02M	-463.32K

Syntec Optics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPTX, the sentiment is Positive. The current price of 2.27 is above the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.48, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 81.44 is Negative, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPTX.

Syntec Optics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELTK	70 Outperform	$70.36M	20.31	8.80%	1.81%	1.05%	-51.90%
Sector *	68 Neutral	$17.10B	11.62	9.70%	3.86%	11.32%	-7.37%
LINK	59 Neutral	$79.11M	―	-18.75%	―	-18.62%	-112.68%
LPTH	55 Neutral	$137.71M	―	-24.86%	―	2.59%	-48.02%
REFR	51 Neutral	$60.65M	―	-37.98%	―	62.28%	44.68%
OPTX	47 Neutral	$66.04M	43.48	-2.17%	―	―	―
GNSS	47 Neutral	$87.60M	―	-131.75%	―	-20.77%	-2.08%