Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $78.40M
• Dividend Yield: N/A
• Average Volume (3M): 67.41K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.78
• Revenue Growth: 21.00%
• EPS Growth: 20.18%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 79
• Industry: Aerospace & Defense
• EPS (TTM): 0.22
• Shares Outstanding: 6,913,623
• 10 Day Avg. Volume: 65,616
• 30 Day Avg. Volume: 67,407
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $13.00
• Price Target Upside: 18.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $13.00 ▲(18.72% Upside)

Optex Systems Holdings scores well due to its strong financial performance and positive earnings call, indicating robust revenue growth and improved profitability. Technical analysis suggests potential short-term weakness, while valuation remains reasonable. The absence of a dividend yield and challenges with backlog and legacy orders slightly temper the 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 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 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	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

• Technical Analysis Sentiment: Neutral
• Last Price: 10.95
• 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 Neutral. The current price of 10.95 is below the 20-day moving average (MA) of 11.64, below the 50-day MA of 11.85, and above the 200-day MA of 8.29, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 51.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPXS.

Optex Systems Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPXS	76 Outperform	$78.40M	14.38	25.14%	―	21.00%	20.18%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
SPAI	61 Neutral	$98.79M	―	-706.72%	―	―	―
VTSI	60 Neutral	$65.43M	167.13	0.83%	―	-17.36%	-94.28%
CVU	49 Neutral	$31.01M	18.87	-3.87%	―	-14.35%	-105.66%
KITT	43 Neutral	$40.40M	―	153.01%	―	-14.94%	49.72%
SIDU	42 Neutral	$31.55M	―	-157.68%	―	-2.60%	82.24%

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.