Optex Systems (OPXS)
NASDAQ:OPXS
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Optex Systems Holdings
(NASDAQ:OPXS)
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Rating:50Neutral
Price Target:
$13.50
▼(-7.28% Downside)
Action:ReiteratedDate:03/10/26
The score is held back primarily by financial uncertainty in the TTM picture (losses and cash burn, with questionable comparability versus prior annual scale). Technicals are mixed but lean weak, and valuation is demanding with a very high P/E and no dividend yield support. Corporate events are a modest positive but not enough to offset the core financial and valuation risks.
Positive Factors
Consistent revenue growth
Multi-year revenue growth through 2025 reflects expanding demand for Optex’s defense optics and greater program scale. Durable growth from government and international contracts supports long-term backlog visibility, enabling reinvestment in product development and steady operational scaling.
Negative Factors
TTM cash-flow deterioration
Recent trailing‑twelve‑month cash burn signals persistent working capital strain or heavy investment timing, increasing reliance on external financing or equity if sustained. That weakens resilience to contract timing variability and can limit strategic investments or share repurchases.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Multi-year revenue growth through 2025 reflects expanding demand for Optex’s defense optics and greater program scale. Durable growth from government and international contracts supports long-term backlog visibility, enabling reinvestment in product development and steady operational scaling.
Read all positive factors
Optex Systems Holdings (OPXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.27M
Dividend YieldN/A
Average Volume (3M)45.68K
Price to Earnings (P/E)101.3
Beta (1Y)1.13
Revenue Growth21.60%
EPS Growth35.00%
CountryUS
Employees128
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.04
Shares Outstanding6,937,358
10 Day Avg. Volume25,101
30 Day Avg. Volume45,676
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)3.67
Price to Sales (P/S)2.15
P/FCF Ratio13.85
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit7.34
Enterprise Value/Ebitda12.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 las...
How the Company Makes Money
Optex Systems generates revenue primarily through the sale of its optical sighting systems and related products to government and commercial customers. The company's revenue model is driven by contracts with various branches of the U.S. military, ...
Optex Systems Holdings Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant revenue and profit growth, improved margins, and cash position. However, there were challenges such as a decrease in backlog orders and margin pressures from legacy contracts. The commercial line faced competitive challenges but overall, the financial improvements suggest a positive outlook.Positive Updates
Significant Revenue Growth
Revenue increased by 22.2% year-over-year for the six months and 25.9% for the three months ending March 30, 2025, reaching $10.7 million for the three-month period and $18.9 million for the six-month period.
Negative Updates
Decrease in Backlog Orders
Backlog orders decreased by $3.1 million or 7% compared to the prior year, although recent awards improved the situation.
Read all updates
Q2-2025 Updates
Positive
Negative
Significant Revenue Growth
Revenue increased by 22.2% year-over-year for the six months and 25.9% for the three months ending March 30, 2025, reaching $10.7 million for the three-month period and $18.9 million for the six-month period.
Read all positive updates
Company Guidance
During the second quarter earnings call for Optex Systems Holdings, Inc., the company provided detailed guidance on its financial performance and future expectations. The company ended the quarter with a cash balance of $3.5 million, up from $1 million in September 2024, driven by a 22.2% increase in six-month revenue to $18.9 million and a 25.9% increase for the three-month period to $10.7 million. Gross profit rose by 31.4% for the three-month period and 29.4% for the six months, with gross margins improving to 31.3% and 29% respectively. Operating income increased by 65% for the three months and 65.2% for the six months, with net income up 66.5% and 74.9% respectively. Basic and diluted earnings per share also saw significant improvements, rising by 62.5% for the three months and 72.7% for the six months. The company reported an EBITDA of $2.4 million for the three-month period and $3.6 million for the six-month period. The backlog of orders stood at $41.1 million as of March 30, 2025, down from $44.2 million the previous year, although a subsequent $5.7 million award boosted this figure. The company highlighted improvements in periscope production levels and growth in military defense revenue, while noting a decrease in commercial optical assemblies. Despite a decrease in new orders, largely attributed to timing differences, the company remains optimistic about future growth and sustainability, supported by its strong financial position and market leadership in its segments.Optex Systems Holdings Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.28M | 41.34M | 33.99M | 25.66M | 22.38M | 18.22M |
| Gross Profit | 12.02M | 12.06M | 9.53M | 6.62M | 4.90M | 2.52M |
| EBITDA | 6.84M | 7.65M | 5.31M | 3.13M | 1.95M | 2.30M |
| Net Income | 4.54M | 5.15M | 3.77M | 2.26M | 1.28M | 2.13M |
Balance Sheet | ||||||
| Total Assets | 30.21M | 30.06M | 25.52M | 22.22M | 18.54M | 20.86M |
| Cash, Cash Equivalents and Short-Term Investments | 5.84M | 6.39M | 1.01M | 1.20M | 934.00K | 3.90M |
| Total Debt | 1.78M | 1.85M | 3.40M | 3.90M | 3.37M | 3.66M |
| Total Liabilities | 5.47M | 5.76M | 6.71M | 7.36M | 6.13M | 5.14M |
| Stockholders Equity | 24.75M | 24.29M | 18.81M | 14.86M | 12.41M | 15.71M |
Cash Flow | ||||||
| Free Cash Flow | -544.05M | 6.43M | 50.00K | -672.00K | 1.78M | 207.00K |
| Operating Cash Flow | -87.87M | 6.93M | 1.78M | -296.00K | 2.04M | 481.00K |
| Investing Cash Flow | -456.19M | -504.00K | -1.73M | -376.00K | -257.00K | -274.00K |
| Financing Cash Flow | -47.00K | -1.05M | -245.00K | 942.00K | -4.75M | -1.01M |
Optex Systems Holdings Technical Analysis
Positive
14.56
Price Trends
13.79
Negative
14.10
Negative
13.32
Positive
Market Momentum
-0.10
Negative
51.42
Neutral
64.01
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 14.56 is above the 20-day moving average (MA) of 13.17, above the 50-day MA of 13.79, and above the 200-day MA of 13.32, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 64.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPXS.
Optex Systems Holdings Risk Analysis
Optex Systems Holdings disclosed 22 risk factors in its most recent earnings report. Optex Systems 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
Optex Systems Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $42.22M | 183.19 | 0.55% | ― | -23.87% | -109.71% | |
50 Neutral | $92.27M | 101.30 | 19.39% | ― | 21.60% | 35.00% | |
50 Neutral | $52.61M | 7.22 | -2.26% | ― | -13.52% | -103.42% | |
49 Neutral | $14.87M | -0.42 | ― | ― | 95.38% | 45.87% | |
46 Neutral | $151.00M | -1.07 | -116.43% | ― | -30.18% | 80.43% | |
43 Neutral | $78.44M | -5.98 | -280.16% | ― | ― | ― |
* Industrials Sector Average
OPXS
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Optex Systems Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Optex Systems Shareholders Reelect Board, Ratify Auditor
Positive
Mar 9, 2026
On March 9, 2026, Optex Systems Holdings, Inc. held its 2026 annual meeting of shareholders, with 5,814,286 shares represented out of 6,937,358 outstanding, constituting a quorum. Shareholders elected five directors — Chad M. George, Dayton ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Optex Systems Announces New Buyback and Mixed Quarterly Results
Neutral
Feb 11, 2026
On February 9, 2026, Optex Systems’ board terminated its existing stock repurchase plan and authorized a new buyback program of up to $10 million of common stock, with purchases to be made opportunistically in the market or through private t...
Business Operations and StrategyExecutive/Board Changes
Optex Systems Grants Performance-Based Equity Awards to Executives
Positive
Dec 23, 2025
On December 18, 2025, Optex Systems Holdings, Inc.’s board approved grants of 50,000 performance shares to President and CEO Chad George and 17,500 performance shares to CFO Karen Hawkins under the company’s 2023 Equity Incentive Plan....
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.