tiprankstipranks
Trending News
More News >
Syntec Optics Holdings (OPTX)
NASDAQ:OPTX
US Market
Advertisement

Syntec Optics Holdings (OPTX) AI Stock Analysis

Compare
121 Followers

Top Page

OPTX

Syntec Optics Holdings

(NASDAQ:OPTX)

Rating:47Neutral
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 (OPTX) vs. SPDR S&P 500 ETF (SPY)

Syntec Optics Holdings Business Overview & Revenue Model

Company DescriptionSyntec 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 MoneySyntec 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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2023Dec 2022Dec 2021
Income Statement
Total Revenue29.44M27.84M26.62M
Gross Profit7.92M6.13M6.59M
EBITDA4.68M2.89M4.64M
Net Income1.98M-434.57K3.25M
Balance Sheet
Total Assets26.55M22.46M27.31M
Cash, Cash Equivalents and Short-Term Investments2.16M526.18K2.30M
Total Debt8.93M10.00M12.67M
Total Liabilities13.48M13.00M17.14M
Stockholders Equity13.06M9.46M10.17M
Cash Flow
Free Cash Flow871.04K687.08K85.76K
Operating Cash Flow2.79M1.93M4.10M
Investing Cash Flow-1.92M-685.43K-4.05M
Financing Cash Flow761.02K-3.02M-463.32K

Syntec Optics Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.27
Price Trends
50DMA
1.48
Positive
100DMA
1.42
Positive
200DMA
1.56
Positive
Market Momentum
MACD
0.11
Negative
RSI
81.44
Negative
STOCH
77.98
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 Risk Analysis

Syntec Optics Holdings disclosed 34 risk factors in its most recent earnings report. Syntec Optics Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Syntec Optics Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$70.36M20.318.80%1.81%1.05%-51.90%
68
Neutral
$17.10B11.629.70%3.86%11.32%-7.37%
59
Neutral
$79.11M-18.75%-18.62%-112.68%
55
Neutral
$137.71M-24.86%2.59%-48.02%
51
Neutral
$60.65M-37.98%62.28%44.68%
47
Neutral
$66.04M43.48-2.17%
47
Neutral
$87.60M-131.75%-20.77%-2.08%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OPTX
Syntec Optics Holdings
2.27
0.62
37.58%
ELTK
Eltek
10.48
0.84
8.71%
LPTH
Lightpath Technologies
3.20
1.76
122.22%
GNSS
Genasys
1.85
-0.77
-29.39%
REFR
Research Frontiers
1.81
-0.13
-6.70%
LINK
Interlink Electronics
7.28
3.22
79.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 24, 2025