Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $60.76M
• Dividend Yield: N/A
• Average Volume (3M): 24.60K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.52
• Revenue Growth: 21.77%
• EPS Growth: 36.36%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 92
• Industry: Aerospace & Defense
• EPS (TTM): 0.26
• Shares Outstanding: 6,912,919
• 10 Day Avg. Volume: 44,712
• 30 Day Avg. Volume: 24,603
• PEG Ratio: -0.06
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.02
• Enterprise Value/Market Cap: -22.08
• Enterprise Value/Revenue: -0.28
• Enterprise Value/Gross Profit: -0.78
• Enterprise Value/Ebitda: -1.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $9.50 ▲(8.08%Upside)

Optex Systems Holdings scores well due to strong financial performance and a positive earnings call, highlighting significant revenue growth and improved cash flow. Technical indicators suggest ongoing bullish momentum, although valuation and lack of dividend yield moderate the score. The recent credit facility renewal further supports the company's financial stability.

Optex Systems Holdings Business Overview & Revenue Model

Company Description

Optex Systems Holdings, Inc. manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States. It offers periscopes, such as laser and non-laser protected plastic and glass periscopes, electronic M17 day/thermal periscopes, and vision blocks; sighting systems, including back up sights, digital day and night sighting systems, M36 thermal periscope, unity mirrors, optical weapon system support and maintenance, and commander weapon station sights; howitzers comprising M137 telescope, M187 mount, M119 aiming device, XM10 and aiming circles; and applied optics center consisting of laser filter units, laser filter interface, optical assemblies, day windows, binoculars, and specialty thin film coatings, as well as other products, such as muzzle reference systems, binoculars, collimators, optical lenses and elements, and windows. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. The company offers its products directly to the federal government, prime contractors, and foreign governments. Optex Systems Holdings, Inc. was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc operates as a subsidiary of Sileas Corporation.

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 demonstrates strong financial health with substantial revenue growth and efficient cash flow management. While profitability ratios such as Net Profit Margin can be optimized further, the overall financial stability and cash flow generation are commendable. The balance sheet is healthy with low leverage, although improving Return on Equity would enhance shareholder value.

Income Statement

Optex Systems Holdings has shown strong revenue growth with a significant increase in total revenue from previous years. The Gross Profit Margin is healthy, indicating effective cost management. However, the Net Profit Margin is relatively low compared to the revenue, which suggests higher operational or interest expenses. The EBIT and EBITDA margins are solid, reflecting efficient operations.

Balance Sheet

The company maintains a strong equity base with a high Equity Ratio, indicative of good financial stability. The Debt-to-Equity Ratio is low, reducing the risk associated with leverage. However, Return on Equity could be improved to better reflect the profitability yielded from shareholders' investments.

Cash Flow

Optex Systems Holdings exhibits strong operating cash flow, significantly exceeding net income, which reflects excellent cash generation efficiency. The Free Cash Flow is robust, showing the company's ability to fund operations and growth without additional financing. There is substantial growth in Free Cash Flow, indicating improved operational efficiency.

Breakdown
TTM	Sep 2024	Dec 2023	Dec 2022	Dec 2021	Sep 2020
Income Statement		Total Revenue
4.76B	33.99M	25.66M	22.38M	18.22M	25.89M
	Gross Profit
1.72B	9.53M	6.62M	4.90M	2.52M	6.09M
	EBIT
1.20B	4.82M	2.79M	1.65M	-494.00K	2.88M
	EBITDA
1.20B	5.31M	3.13M	1.95M	2.30M	2.62M
	Net Income Common Stockholders
28.42M	3.77M	2.26M	1.28M	2.13M	1.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.53B	1.01M	1.20M	934.00K	3.90M	4.70M
	Total Assets
27.48B	25.52M	22.22M	18.54M	20.86M	20.34M
	Total Debt
2.13B	3.40M	3.90M	3.37M	3.66M	1.83M
	Net Debt
-1.40B	2.39M	2.70M	2.43M	-239.00K	-2.87M
	Total Liabilities
5.89B	6.71M	7.36M	6.13M	5.14M	6.37M
	Stockholders Equity
21.58B	18.81B	14.86M	12.41M	15.71M	13.98M
Cash Flow		Free Cash Flow
3.53B	50.00K	-672.00K	1.78M	207.00K	3.76M
	Operating Cash Flow
3.99B	1.78M	-296.00K	2.04M	481.00K	3.91M
	Investing Cash Flow
-463.53M	-1.73M	-376.00K	-257.00K	-274.00K	-152.00K
	Financing Cash Flow
26.42M	-245.00K	942.00K	-4.75M	-1.01M	-127.00K

Optex Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.79
• 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 OPXS, the sentiment is Positive. The current price of 8.79 is above the 20-day moving average (MA) of 7.45, above the 50-day MA of 6.45, and above the 200-day MA of 7.28, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 75.06 is Negative, neither overbought nor oversold. The STOCH value of 74.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPXS.

Optex Systems Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	77 Outperform	$60.76M	12.39	25.69%	―	21.77%	36.36%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
VTSI	65 Neutral	$60.93M	42.07	3.10%	―	-29.61%	-78.85%
CVU	56 Neutral	$39.00M	21.13	7.62%	―	-7.34%	-88.84%
SPAI	49 Neutral	$41.27M	―	-594.07%	―	―	―
SIDU	37 Underperform	$27.64M	―	-109.05%	―	-18.70%	84.35%
KITT	35 Underperform	$34.44M	―	153.01%	―	-64.51%	7.09%

Optex Systems Holdings Corporate Events

Optex Systems Holdings Renews Credit Facility Agreement

On May 21, 2025, Optex Systems Holdings, Inc. and its subsidiary renewed their credit facility with Texas Capital Bank, entering into a new Business Loan Agreement effective May 22, 2025. This agreement provides a $3 million revolving line of credit with a commitment period of 24 months, expiring on May 22, 2027. The credit facility includes a variable interest rate and various covenants, and it is secured by the operating assets of the borrowers. This renewal is significant for Optex’s financial operations, ensuring continued access to capital and potentially impacting its strategic planning and stakeholder interests.