Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $106.70M
• Dividend Yield: N/A
• Average Volume (3M): 44.70K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.15
• Revenue Growth: 21.60%
• EPS Growth: 35.00%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.15
• Shares Outstanding: 6,937,358
• 10 Day Avg. Volume: 43,174
• 30 Day Avg. Volume: 44,696
• PEG Ratio: 0.51
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 13.85
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 11.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $16.50 ▲(13.32% Upside)

The score is driven primarily by strong financial performance (revenue, profitability, and cash generation with low leverage). Offsetting this, technical signals are mixed with slightly negative MACD, and valuation is reasonable but not notably cheap with no dividend yield provided. Recent corporate actions are supportive but secondary.

Positive Factors

Cash generation

Sustained free cash flow growth provides durable funding for R&D, capital expenditure and working capital tied to defense contracts. Strong cash conversion improves resilience through multi-year contract cycles and supports organic growth or selective bolt-on investments without heavy external financing.

Conservative balance sheet

Low leverage and a solid equity base give Optex flexibility to pursue multi-year government contracts and absorb cyclical defense spending swings. Conservative debt levels reduce refinancing and interest risks, preserving capacity to invest in product development and strategic bids over the next several quarters.

Management alignment and defense experience

Performance-based equity awards and a CEO with deep defense-sector experience signal stronger governance and strategic alignment with long-term shareholder value. This alignment can enhance contract wins, partner credibility, and execution on multi-year defense programs versus short-term incentive structures.

Negative Factors

Low EBIT margin

A persistently low EBIT margin suggests structural operating inefficiencies or high fixed costs relative to revenue. Over months, this compresses operating leverage, limits reinvestment capacity and makes earnings more sensitive to cost inflation or contract mix shifts despite revenue growth.

Slightly rising debt

Although leverage is currently conservative, an observable rise in debt reduces financial flexibility for bidding on capital-intensive defense programs and raises refinancing exposure. If debt continues to climb it could constrain capital allocation and elevate interest cost risk across cycles.

Cash flow volatility

Variability in cash flow growth points to sensitivity to contract timing, backlog conversion or working-capital swings. Such volatility can complicate budgeting for long-term program investments and increase the need for precautionary liquidity even as headline free cash flow grows.

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 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 Financial Statement Overview

Summary

Strong overall fundamentals: income statement shows impressive revenue growth and strong net profitability, cash flow indicates robust free cash flow generation and good earnings-to-cash conversion, and the balance sheet is conservatively levered with healthy ROE. Key offsets are a notably low EBIT margin (operational efficiency) and some cash flow growth volatility, plus a slight upward drift in debt.

Income Statement

Optex Systems Holdings has demonstrated impressive revenue growth, with a significant increase in total revenue over the past year. The gross profit margin has improved, indicating efficient cost management. The net profit margin is strong, reflecting robust profitability. However, the EBIT margin is notably low, suggesting potential inefficiencies in operational management. Overall, the income statement reflects a positive growth trajectory with strong profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating a conservative approach to leveraging. The return on equity is healthy, showcasing effective use of shareholder funds to generate profits. The equity ratio is solid, reflecting a stable financial position. However, the slight increase in debt levels over time could pose a risk if not managed carefully.

Cash Flow

Optex Systems Holdings has shown remarkable growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is also strong, suggesting effective cash management. Despite these strengths, fluctuations in cash flow growth rates in previous years indicate potential volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.34M	41.34M	33.99M	25.66M	22.38M	18.22M
Gross Profit	12.06M	12.06M	9.53M	6.62M	4.90M	2.52M
EBITDA	7.65M	7.65M	5.31M	3.13M	1.95M	2.30M
Net Income	5.15M	5.15M	3.77M	2.26M	1.28M	2.13M
Balance Sheet
Total Assets	30.06M	30.06M	25.52M	22.22M	18.54M	20.86M
Cash, Cash Equivalents and Short-Term Investments	6.39M	6.39M	1.01M	1.20M	934.00K	3.90M
Total Debt	1.85M	1.85M	3.40M	3.90M	3.37M	3.66M
Total Liabilities	5.76M	5.76M	6.71M	7.36M	6.13M	5.14M
Stockholders Equity	24.29M	24.29M	18.81M	14.86M	12.41M	15.71M
Cash Flow
Free Cash Flow	6.43M	6.43M	50.00K	-672.00K	1.78M	207.00K
Operating Cash Flow	6.93M	6.93M	1.78M	-296.00K	2.04M	481.00K
Investing Cash Flow	-504.00K	-504.00K	-1.73M	-376.00K	-257.00K	-274.00K
Financing Cash Flow	-1.05M	-1.05M	-245.00K	942.00K	-4.75M	-1.01M

Optex Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.12, above the 50-day MA of 14.34, and above the 200-day MA of 11.72, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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	74 Outperform	$106.70M	20.64	23.88%	―	21.60%	35.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VTSI	55 Neutral	$55.94M	-97.65	-1.26%	―	-23.87%	-109.71%
CVU	50 Neutral	$53.14M	-91.07	-2.26%	―	-13.52%	-103.42%
SIDU	49 Neutral	$244.79M	-2.88	-142.81%	―	-30.18%	80.43%
KITT	44 Neutral	$28.34M	>-0.01	―	―	95.38%	45.87%
SPAI	39 Underperform	$130.66M	-7.97	-193.70%	―	―	―

Optex Systems Holdings Corporate Events

Optex Systems Grants Performance-Based Equity Awards to Executives

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. The awards, each representing a contingent right to one share of common stock, will vest in five equal tranches between December 18, 2025 and September 29, 2030, contingent on the company’s stock achieving specified 30‑day average VWAP price hurdles ranging from $17.54 to $36.37, aligning executive compensation more closely with long-term share price performance and potentially strengthening management’s incentives to drive shareholder value over time.

The most recent analyst rating on (OPXS) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Optex Systems Holdings stock, see the OPXS Stock Forecast page.

Optex Systems Announces CEO Transition to Chad George

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.

The most recent analyst rating on (OPXS) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Optex Systems Holdings stock, see the OPXS Stock Forecast page.