Optex Systems Holdings (OPXS) AI Stock Analysis

• Market Cap: $99.28M
• Dividend Yield: N/A
• Average Volume (3M): 42.91K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.06
• Revenue Growth: 21.00%
• EPS Growth: 20.18%
• Country: US
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.22
• Shares Outstanding: 6,913,623
• 10 Day Avg. Volume: 22,193
• 30 Day Avg. Volume: 42,908
• PEG Ratio: 0.21
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 47.17
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 11.13
• 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

The significant revenue growth indicates strong demand for Optex's products and successful market penetration, which is crucial for long-term business sustainability.

Cash Flow Management

Strong cash flow management ensures Optex can fund operations and investments without relying heavily on external financing, supporting long-term growth.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing Optex to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Net Profit Margins

Low net profit margins indicate potential inefficiencies in cost management or pricing strategy, which could hinder long-term profitability and competitiveness.

Operational Efficiency

Low EBIT and EBITDA margins highlight operational inefficiencies that may limit the company's ability to maximize profitability from its revenue growth.

Profitability Challenges

Challenges in profitability and efficiency could strain resources and limit reinvestment capacity, affecting the company's competitive position over time.

Optex Systems Holdings Business Overview & Revenue Model

Company Description

Optex Systems Holdings (OPXS) is a leading provider of optical sighting systems for military and commercial applications. The company specializes in the design and manufacture of advanced optical products, including gun sights, binoculars, and other precision optical instruments used in defense and law enforcement sectors. With a focus on innovation and quality, Optex leverages cutting-edge technologies to deliver high-performance optical solutions tailored to the needs of its clients.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.48M	33.99M	25.66M	22.38M	18.22M	25.89M
Gross Profit	11.06M	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	5.14M	3.77M	2.26M	1.28M	2.13M	1.82M
Balance Sheet
Total Assets	29.18M	25.52M	22.22M	18.54M	20.86M	20.34M
Cash, Cash Equivalents and Short-Term Investments	4.87M	1.01M	1.20M	934.00K	3.90M	4.70M
Total Debt	1.99M	3.40M	3.90M	3.37M	3.66M	1.83M
Total Liabilities	6.05M	6.71M	7.36M	6.13M	5.14M	6.37M
Stockholders Equity	23.13M	18.81M	14.86M	12.41M	15.71M	13.98M
Cash Flow
Free Cash Flow	5.46M	1.10M	-672.00K	1.78M	207.00K	3.76M
Operating Cash Flow	6.12M	1.78M	-296.00K	2.04M	481.00K	3.91M
Investing Cash Flow	-691.00K	-1.73M	-376.00K	-257.00K	-274.00K	-152.00K
Financing Cash Flow	-1.04M	-245.00K	942.00K	-4.75M	-1.01M	-127.00K

Optex Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 14.65, below the 50-day MA of 14.75, and above the 200-day MA of 10.41, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 85.07 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	75 Outperform	$99.28M	19.30	25.14%	―	21.00%	20.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VTSI	55 Neutral	$55.94M	―	-1.26%	―	-23.87%	-109.71%
CVU	46 Neutral	$28.80M	-29.78	-2.26%	―	-13.52%	-103.42%
SPAI	39 Underperform	$82.21M	―	-193.70%	―	―	―
KITT	39 Underperform	$8.33M	>-0.01	―	―	95.38%	45.87%
SIDU	38 Underperform	$24.47M	―	-142.81%	―	-30.18%	80.43%

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.