Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $39.31M
• Dividend Yield: N/A
• Average Volume (3M): 13.78K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.26
• Revenue Growth: 23.22%
• EPS Growth: 39.83%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 63
• Industry: Aerospace & Defense
• EPS (TTM): 0.61
• Shares Outstanding: 6,896,738
• 10 Day Avg. Volume: 7,515
• 30 Day Avg. Volume: 13,782
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.17
• Price to Cash Flow (P/CF): 3.70
• P/FCF Ratio: 3.70
• 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

Optex Systems Holdings has a robust financial foundation with strong revenue growth and cash flow management. However, technical indicators suggest bearish trends with the stock trading below key moving averages. The valuation is attractive with a low P/E ratio, but the absence of dividends may limit its appeal. Overall, while financial health is strong, market momentum and lack of income opportunities weigh down the score.

Optex Systems Holdings Business Overview & Revenue Model

Company Description

Optex Systems Holdings (OPXS) operates in the defense and aerospace sectors, specializing in the manufacturing of optical sighting systems and assemblies primarily for military applications. The company's product portfolio includes periscopes, rifle and surveillance sights, and other optical components used in vehicles, weapon systems, and other military installations.

How the Company Makes Money

Optex Systems Holdings makes money through the sale of its optical sighting systems and related components to governments and defense contractors. The company's revenue streams are primarily derived from contracts and purchase orders from the U.S. Department of Defense and other international military organizations. Optex Systems often enters into long-term contracts and partnerships with large defense contractors, which provide a stable source of income. The company also benefits from ongoing maintenance and upgrade services for its existing products, contributing to its revenue.

Optex Systems Holdings Financial Statement Overview

Summary

Optex Systems Holdings exhibits solid financial performance with impressive revenue growth and efficient cash flow management. However, there's a need for improvement in net income margins and addressing the absence of stockholder equity in recent reports.

Income Statement

Optex Systems Holdings demonstrates strong year-over-year revenue growth of 51.8% from 2023 to 2024. The gross profit margin for TTM is robust at 35.6%, indicating good cost control. The EBIT margin is notably high at 25.5%, reflecting efficient operations. Additionally, the net profit margin for TTM is 0.6%, which is relatively low, suggesting room for improvement in net income management.

Balance Sheet

The company's debt-to-equity ratio is favorable at 0.13, suggesting low leverage and financial stability. The return on equity is modest at 0.20% for TTM, indicating limited profitability relative to shareholder equity. The equity ratio stands at 0% for TTM, which requires attention as stockholder equity is not present in the latest data.

Cash Flow

Optex Systems shows a strong operating cash flow to net income ratio of 77.9 for TTM, highlighting efficient cash generation from operations. The free cash flow growth rate is positive, indicating strong cash management and investment capabilities. The free cash flow to net income ratio is substantially high at 75.82, reflecting strong cash conversion of net income.

Breakdown
TTM	Sep 2024	Dec 2023	Dec 2022	Dec 2021	Sep 2020
Income Statement		Total Revenue
35.22M	33.99M	25.66M	22.38M	18.22M	25.89M
	Gross Profit
9.97M	9.53M	6.62M	4.90M	2.52M	6.09M
	EBIT
5.18M	4.82M	2.79M	1.65M	-494.00K	2.88M
	EBITDA
5.71M	5.31M	3.13M	1.95M	2.30M	2.62M
	Net Income Common Stockholders
4.18M	3.77M	2.26M	1.28M	2.13M	1.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.10M	1.01M	1.20M	934.00K	3.90M	4.70M
	Total Assets
10.37M	25.52B	22.22M	18.54M	20.86M	20.34M
	Total Debt
717.00K	2.40B	3.90M	3.37M	3.66M	1.83M
	Net Debt
-386.00K	1.39B	2.70M	2.43M	-239.00K	-2.87M
	Total Liabilities
3.27M	6.71B	7.36M	6.13M	5.14M	6.37M
	Stockholders Equity
7.10M	18.81B	14.86M	12.41M	15.71M	13.98M
Cash Flow		Free Cash Flow
2.19B	1.10B	-672.00K	1.78M	207.00K	3.76M
	Operating Cash Flow
2.25B	1.78B	-296.00K	2.04M	481.00K	3.91M
	Investing Cash Flow
-59.67M	-1.73B	-376.00K	-257.00K	-274.00K	-152.00K
	Financing Cash Flow
-1.03B	-245.00M	942.00K	-4.75M	-1.01M	-127.00K

Optex Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPXS, the sentiment is Negative. The current price of 5.62 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 6.00, and below the 200-day MA of 7.43, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPXS.

Optex Systems Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$7.26B	12.38	3.01%	3.40%	3.58%	-14.13%
MRCY	61 Neutral	$2.65B	―	-6.10%	―	-1.21%	-4.63%
OPXS	61 Neutral	$39.31M	9.24	23.81%	―	23.22%	39.83%
KTOS	59 Neutral	$4.65B	260.98	1.40%	―	9.57%	―
AVAV	58 Neutral	$3.32B	95.51	3.94%	―	5.21%	―
VISL	44 Neutral	$6.16M	―	-24.36%	―	21.09%	31.80%