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Optex Systems Holdings Inc (OPXS)
NASDAQ:OPXS
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Optex Systems Holdings
(NASDAQ:OPXS)
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Select Model
Rating:73Outperform
Price Target:
$13.50
▲(6.89% Upside)
Optex Systems Holdings demonstrates strong financial performance with robust revenue and cash flow growth, supported by a stable balance sheet. Technical indicators show a positive trend, though caution is advised due to overbought signals. The valuation is reasonable, but the lack of dividend yield may deter some investors.
Optex Systems Holdings (OPXS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.32M
Dividend YieldN/A
Average Volume (3M)47.65K
Price to Earnings (P/E)17.0
Beta (1Y)0.77
Revenue Growth21.00%
EPS Growth20.18%
CountryUS
Employees128
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.22
Shares Outstanding6,913,623
10 Day Avg. Volume32,778
30 Day Avg. Volume47,649
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda11.13
Forecast
1Y Price Target
$13.50Price Target Upside6.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Optex Systems Holdings Business Overview & Revenue Model
Company DescriptionOptex 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 MoneyOptex 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 Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 22, 2025
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 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.75
Positive
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.80
Positive
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.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 33.99M | 25.66M | 22.38M | 18.22M | 25.89M |
| Gross Profit | 1.42B | 9.53M | 6.62M | 4.90M | 2.52M | 6.09M |
| EBITDA | 6.89M | 5.31M | 3.13M | 1.95M | 2.30M | 2.62M |
| Net Income | 23.03M | 3.77M | 2.26M | 1.28M | 2.13M | 1.82M |
Balance Sheet | ||||||
| Total Assets | 29.18B | 25.52M | 22.22M | 18.54M | 20.86M | 20.34M |
| Cash, Cash Equivalents and Short-Term Investments | 4.87B | 1.01M | 1.20M | 934.00K | 3.90M | 4.70M |
| Total Debt | 1.99B | 3.40M | 3.90M | 3.37M | 3.66M | 1.83M |
| Total Liabilities | 6.05B | 6.71M | 7.36M | 6.13M | 5.14M | 6.37M |
| Stockholders Equity | 23.13B | 18.81M | 14.86M | 12.41M | 15.71M | 13.98M |
Cash Flow | ||||||
| Free Cash Flow | 4.92B | 1.10M | -672.00K | 1.78M | 207.00K | 3.76M |
| Operating Cash Flow | 5.37B | 1.78M | -296.00K | 2.04M | 481.00K | 3.91M |
| Investing Cash Flow | -463.23M | -1.73M | -376.00K | -257.00K | -274.00K | -152.00K |
| Financing Cash Flow | 25.95M | -245.00K | 942.00K | -4.75M | -1.01M | -127.00K |
Optex Systems Holdings Technical Analysis
Positive
12.63
Price Trends
11.95
Positive
10.56
Positive
8.52
Positive
Market Momentum
0.22
Negative
60.54
Neutral
94.17
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 12.63 is above the 20-day moving average (MA) of 11.50, above the 50-day MA of 11.95, and above the 200-day MA of 8.52, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 94.17 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $87.32M | 16.98 | 25.14% | ― | 21.00% | 20.18% | |
59 Neutral | 60.51M | 150.84 | 0.82% | ― | -17.36% | -94.28% | |
56 Neutral | 130.75M | -9.19 | -191.73% | ― | 0.00% | 0.00% | |
49 Neutral | 33.23M | -34.37 | -3.90% | ― | -14.35% | -105.66% | |
42 Neutral | 38.07M | -0.55 | -74.46% | ― | -2.60% | 82.24% | |
41 Neutral | 16.64M | -0.01 | 661.39% | ― | -14.94% | 49.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
OPXS
Optex Systems Holdings
12.63
4.93
64.03%
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2.55
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5.37
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KITT
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3.34
-10.25
-75.42%
SIDU
Sidus Space, Inc. Class A
1.08
-1.69
-61.01%
SPAI
Safe Pro Group, Inc.
6.95
4.00
135.59%
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.