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Optex Systems (OPXS)
:OPXS
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Optex Systems Holdings
(NASDAQ:OPXS)
Select Model
Select Model
Rating:74Outperform
Price Target:
$15.00
▲(3.02% Upside)
Optex Systems Holdings scores well due to its strong financial performance and positive corporate event with the CEO transition. However, technical indicators suggest a lack of strong momentum, and valuation metrics indicate the stock is fairly valued. The absence of earnings call data limits further insights.
Positive Factors
Revenue Growth
A 21.6% revenue increase indicates strong demand for Optex's products, enhancing its market position and supporting long-term growth.
CEO Transition
Chad George's promotion to CEO is expected to drive strategic growth and innovation, leveraging his defense sector experience.
Cash Flow Growth
Strong cash generation capabilities enhance financial flexibility, allowing for strategic investments and debt management.
Negative Factors
Operational Efficiency
Low EBIT margin suggests potential inefficiencies in operations, which could impact profitability if not addressed.
Debt Levels
Rising debt levels, if not managed, could strain financial resources and limit future growth opportunities.
Cash Flow Volatility
Volatile cash flow growth could affect financial stability, making it challenging to plan long-term investments.
Optex Systems Holdings (OPXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.49M
Dividend YieldN/A
Average Volume (3M)41.44K
Price to Earnings (P/E)18.3
Beta (1Y)1.09
Revenue Growth21.60%
EPS Growth35.00%
CountryUS
Employees128
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.15
Shares Outstanding6,937,358
10 Day Avg. Volume69,971
30 Day Avg. Volume41,441
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00215
P/FCF Ratio0.01
Enterprise Value/Market Cap-47.10
Enterprise Value/Revenue-0.11
Enterprise Value/Gross Profit-0.37
Enterprise Value/Ebitda-0.70
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 DescriptionOptex Systems Holdings, Inc. (OPXS) is a publicly traded company that specializes in the design, manufacture, and sale of optical sighting systems and related products primarily for the defense and aerospace sectors. The company focuses on providing advanced optical systems, including laser range finders, aiming systems, and other specialized optical components, catering to military and commercial applications. Through its innovative technologies and commitment to quality, Optex aims to enhance the operational capabilities of its clients in both domestic and international markets.
How the Company Makes MoneyOptex 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, as well as international defense contracts, which often involve long-term agreements and recurring orders for replacement parts and upgrades. Key revenue streams include direct sales of optical systems, government contracts, and potential partnerships with other defense contractors for joint projects. Additionally, Optex may benefit from defense budget allocations and contracts awarded by governmental agencies, which can significantly influence its earnings.
Optex Systems Holdings Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 16, 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.Q2-2025 Updates
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.
Improved Gross Profit and Operating Income
Gross profit increased by 31.4% for the three-month period and 29.4% for the six-month period. Operating income rose by 65% for the three months and 65.2% for the six months.
Increase in Cash and Reduction in Inventory
Cash balance increased to $3.5 million from $1 million, driven by higher revenue and EBITDA, as well as reductions in inventory.
Strong Gross Margin Performance
Gross margin improved to 31.3% for the three-month window, with notable performance from the Applied Optics Center at 36.1% and Optex Richardson at 26.1%.
Recent Large Order and Backlog
Received an additional $5.7 million award for laser filters shortly after the quarter-end, which improved the backlog position.
Periscope Production and Revenue Increase
Periscope production levels increased by 50% over 2024, with a 101.6% increase in periscope line revenue.
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.
Legacy Contract Margin Pressure
Some old fixed-price contracts had lower margins due to unanticipated material cost increases, affecting the Optex Richardson segment.
Commercial Line Challenges
Commercial sales, specifically the Speedtracker product, faced competition from larger players like Garmin, impacting sales performance.
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
Optex Systems Holdings exhibits strong financial health with impressive revenue and cash flow growth. The balance sheet is stable with low leverage, and cash flow metrics indicate efficient cash management. However, the company faces challenges in improving net profit margins and operational efficiency, which could impact long-term profitability.Income Statement
Optex Systems Holdings shows a robust revenue growth trajectory, particularly in the TTM period with a remarkable increase of over 12,000%. Gross profit margins have improved over time, indicating better cost management. However, net profit margins remain low, suggesting challenges in converting revenue growth into substantial net income. EBIT and EBITDA margins are also low, indicating potential inefficiencies in operations.85
Very Positive
Balance Sheet
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.086 in the TTM period, indicating conservative leverage. Return on equity is modest, reflecting moderate profitability. The equity ratio is healthy, suggesting a stable financial structure with a significant portion of assets financed by equity.78
Positive
Cash Flow
Optex Systems Holdings demonstrates impressive cash flow performance, with substantial free cash flow growth in the TTM period. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable, highlighting effective cash management.82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.34B | 41.34B | 33.99M | 25.66M | 22.38M | 18.22M |
| Gross Profit | 12.06B | 12.06B | 9.53M | 6.62M | 4.90M | 2.52M |
| EBITDA | 6.33B | 7.13B | 5.31M | 3.13M | 1.95M | 2.30M |
| Net Income | 5.15B | 5.15B | 3.77M | 2.26M | 1.28M | 2.13M |
Balance Sheet | ||||||
| Total Assets | 30.06B | 30.06B | 25.52M | 22.22M | 18.54M | 20.86M |
| Cash, Cash Equivalents and Short-Term Investments | 6.39B | 6.39B | 1.01M | 1.20M | 934.00K | 3.90M |
| Total Debt | 1.85B | 1.85B | 3.40M | 3.90M | 3.37M | 3.66M |
| Total Liabilities | 5.76B | 5.76B | 6.71M | 7.36M | 6.13M | 5.14M |
| Stockholders Equity | 24.29B | 24.29B | 18.81M | 14.86M | 12.41M | 15.71M |
Cash Flow | ||||||
| Free Cash Flow | 6.44B | 6.44B | 1.10M | -672.00K | 1.78M | 207.00K |
| Operating Cash Flow | 6.93B | 6.93B | 1.78M | -296.00K | 2.04M | 481.00K |
| Investing Cash Flow | -966.54M | -504.00M | -1.73M | -376.00K | -257.00K | -274.00K |
| Financing Cash Flow | -1.05B | -1.05B | -245.00K | 942.00K | -4.75M | -1.01M |
Optex Systems Holdings Technical Analysis
Negative
14.56
Price Trends
15.00
Negative
13.57
Positive
11.00
Positive
Market Momentum
-0.24
Positive
45.24
Neutral
34.57
Neutral
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 14.56 is above the 20-day moving average (MA) of 14.11, below the 50-day MA of 15.00, and above the 200-day MA of 11.00, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $94.49M | 18.29 | 23.88% | ― | 21.60% | 35.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $44.30M | -73.20 | -2.26% | ― | -13.52% | -103.42% | |
55 Neutral | $49.72M | -86.27 | -1.26% | ― | -23.87% | -109.71% | |
44 Neutral | $11.91M | >-0.01 | ― | ― | 95.38% | 45.87% | |
44 Neutral | $40.89M | -0.90 | -142.81% | ― | -30.18% | 80.43% | |
39 Underperform | $87.04M | -5.30 | -193.70% | ― | ― | ― |
* Industrials Sector Average
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Optex Systems Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Optex Systems Announces CEO Transition to Chad George
Positive
Dec 8, 2025
On December 4, 2025, Danny Schoening announced his resignation as CEO of Optex Systems Holdings, effective December 20, 2025, but will remain as Chairman of the Board. Chad George, previously the company’s President, will assume the role of CEO, bringing extensive experience from the defense sector, including roles at Leonardo DRS and Raytheon. This leadership transition is expected to strengthen Optex’s position in defense optics and drive future growth.
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.