Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $93.46M
• Dividend Yield: N/A
• Average Volume (3M): 88.06K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.69
• Revenue Growth: 21.77%
• EPS Growth: 36.36%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 0.26
• Shares Outstanding: 6,912,919
• 10 Day Avg. Volume: 66,363
• 30 Day Avg. Volume: 88,055
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.03
• Enterprise Value/Market Cap: -13.97
• Enterprise Value/Revenue: -0.27
• Enterprise Value/Gross Profit: -0.76
• Enterprise Value/Ebitda: -1.07
• 1Y Price Target: $12.00
• Price Target Upside: -2.91% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: $15.00 ▲(21.36%Upside)

Optex Systems Holdings scores highly due to strong financial performance and technical momentum. The company's efficient cash flow management, significant revenue growth, and healthy balance sheet are key strengths. Although the valuation is moderate, the lack of a dividend yield is a downside. Positive guidance from earnings calls and strategic access to capital through a renewed credit facility support a favorable outlook.

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 through the sale of its precision optical products to defense contractors and government agencies. The company's key revenue streams include contracts for the development and supply of optical sighting systems and components used in military vehicles and weapon systems. Additionally, Optex may engage in long-term contracts and partnerships with major defense contractors, which contribute significantly to its earnings. The company's financial performance is influenced by defense budget allocations and the demand for military modernization and equipment upgrades.

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.

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.

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.

Breakdown	Sep 2024	Dec 2023	Dec 2022	Dec 2021	Sep 2020
Income Statement
Total Revenue	33.99M	25.66M	22.38M	18.22M	25.89M
Gross Profit	9.53M	6.62M	4.90M	2.52M	6.09M
EBITDA	5.31M	3.13M	1.95M	2.30M	2.62M
Net Income	3.77M	2.26M	1.28M	2.13M	1.82M
Balance Sheet
Total Assets	25.52M	22.22M	18.54M	20.86M	20.34M
Cash, Cash Equivalents and Short-Term Investments	1.01M	1.20M	934.00K	3.90M	4.70M
Total Debt	3.40M	3.90M	3.37M	3.66M	1.83M
Total Liabilities	6.71M	7.36M	6.13M	5.14M	6.37M
Stockholders Equity	18.81B	14.86M	12.41M	15.71M	13.98M
Cash Flow
Free Cash Flow	50.00K	-672.00K	1.78M	207.00K	3.76M
Operating Cash Flow	1.78M	-296.00K	2.04M	481.00K	3.91M
Investing Cash Flow	-1.73M	-376.00K	-257.00K	-274.00K	-152.00K
Financing Cash Flow	-245.00K	942.00K	-4.75M	-1.01M	-127.00K

Optex Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 12.36 is above the 20-day moving average (MA) of 11.77, above the 50-day MA of 9.79, and above the 200-day MA of 7.76, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 66.49 is Neutral, 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	80 Outperform	$93.46M	17.44	25.69%	―	21.77%	36.36%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
VTSI	65 Neutral	$68.13M	47.90	3.10%	―	-29.61%	-78.85%
CVU	62 Neutral	$44.85M	24.58	7.62%	―	-7.34%	-88.84%
SPAI	59 Neutral	$47.64M	―	-594.07%	―	―	―
SIDU	47 Neutral	$32.22M	―	-109.05%	―	-18.70%	84.35%
KITT	47 Neutral	$36.68M	―	153.01%	―	-64.51%	7.09%

Optex Systems Holdings Corporate Events

Optex Systems Holdings Renews Credit Facility Agreement

On May 21, 2025, Optex Systems Holdings, Inc. and its subsidiary renewed their credit facility with Texas Capital Bank, entering into a new Business Loan Agreement effective May 22, 2025. This agreement provides a $3 million revolving line of credit with a commitment period of 24 months, expiring on May 22, 2027. The credit facility includes a variable interest rate and various covenants, and it is secured by the operating assets of the borrowers. This renewal is significant for Optex’s financial operations, ensuring continued access to capital and potentially impacting its strategic planning and stakeholder interests.