Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $88.15M
• Dividend Yield: N/A
• Average Volume (3M): 43.57K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.09
• 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: 65,735
• 30 Day Avg. Volume: 43,572
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00215
• P/FCF Ratio: 0.01
• Enterprise Value/Market Cap: -50.48
• Enterprise Value/Revenue: -0.11
• Enterprise Value/Gross Profit: -0.37
• Enterprise Value/Ebitda: -0.70
• 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: 75 Outperform
• Price Target: $19.50 ▲(33.93% Upside)

Optex Systems Holdings demonstrates strong financial performance with robust revenue and cash flow growth, supported by a stable balance sheet. The technical analysis indicates a bullish trend, although caution is advised due to overbought signals. The valuation is reasonable, but the lack of a dividend yield may deter some investors. Overall, the stock presents a solid investment opportunity with some areas for improvement.

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 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 generates revenue primarily through the sale of its optical products to government and commercial customers. The company's revenue model is based on contracts with military organizations, defense contractors, and law enforcement agencies, providing products that meet stringent specifications and operational requirements. Key revenue streams include direct sales of optical systems, spare parts, and maintenance services. Additionally, Optex may benefit from partnerships with other defense technology companies, enabling collaborative efforts to develop advanced solutions and expand market reach. The company’s earnings are also influenced by government defense budgets and procurement processes, as well as the demand for high-quality optical systems in both domestic and international markets.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 14.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.08, below the 50-day MA of 15.04, and above the 200-day MA of 10.96, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 37.32 is Neutral, 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
OPXS	75 Outperform	$88.15M	18.26	23.88%	―	21.60%	35.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVU	56 Neutral	$42.72M	-69.72	-2.26%	―	-13.52%	-103.42%
VTSI	55 Neutral	$48.82M	-85.29	-1.26%	―	-23.87%	-109.71%
KITT	44 Neutral	$11.80M	>-0.01	―	―	95.38%	45.87%
SIDU	42 Neutral	$31.72M	-0.66	-142.81%	―	-30.18%	80.43%
SPAI	39 Underperform	$67.74M	-4.34	-193.70%	―	―	―

Optex Systems Holdings Corporate Events

Optex Systems Reports Record Revenue Growth

Optex Systems Holdings, Inc., based in Richardson, Texas, is a prominent manufacturer specializing in precision optical sighting systems, primarily serving the defense sector with applications for military vehicles and commercial use.