Optical Cable (OCC)
NASDAQ:OCC
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Optical Cable
(NASDAQ:OCC)
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Rating:54Neutral
Price Target:
$12.50
▲(46.89% Upside)
Action:Reiterated
Date:06/04/26
The score is held back primarily by weak profitability and negative/volatile cash flow despite strong revenue growth and a healthier balance sheet. Technicals are a meaningful positive with a clear uptrend and supportive momentum indicators. Valuation is constrained by negative earnings (negative P/E), while recent refinancing is modestly positive but comes with stricter collateral and covenant terms.
Positive Factors
Strong Revenue Growth
Sustained nearly +94% TTM revenue growth indicates robust demand and successful product exposure across communications infrastructure end markets. Over 2-6 months this supports scale economies, stronger negotiating leverage with suppliers and customers, and a base for margin recovery if cost control continues.
Negative Factors
Weak Profitability
Persistently negative net margin and barely positive EBITDA margin mean revenue growth is not yet translating into reliable earnings. Over several quarters this impairs retained earnings and return on equity, limiting reinvestment capacity and making long-term shareholder returns contingent on sustained margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained nearly +94% TTM revenue growth indicates robust demand and successful product exposure across communications infrastructure end markets. Over 2-6 months this supports scale economies, stronger negotiating leverage with suppliers and customers, and a base for margin recovery if cost control continues.
Read all positive factors
Optical Cable Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyOptical Cable (OCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.79M
Dividend YieldN/A
Average Volume (3M)356.08K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth9.13%
EPS Growth81.23%
CountryUS
Employees339
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.09
Shares Outstanding8,831,598
10 Day Avg. Volume496,056
30 Day Avg. Volume356,085
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)2.94
Price to Sales (P/S)0.87
P/FCF Ratio56.61
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit5.66
Enterprise Value/Ebitda132.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.3
Revenue Forecast (FY)N/A
Optical Cable Business Overview & Revenue Model
Company Description
Optical Cable Corporation, together with its subsidiaries, manufactures and sells fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The compa...
How the Company Makes Money
OCC makes money primarily by selling manufactured cabling and connectivity products to customers in network and communications infrastructure supply chains. Key revenue streams include (1) fiber-optic cable sales (e.g., indoor/outdoor fiber cable ...
Optical Cable Earnings Call Summary
Earnings Call Date:Dec 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 08, 2026
Earnings Call Sentiment Neutral
The earnings call highlights several positive aspects such as increased net sales, gross profit growth, and strategic collaboration with Lightera. However, challenges remain, including a net loss for the fiscal year, a slight decline in Q4 gross profit, and increased SG&A expenses. The overall sentiment is balanced with optimism for future growth.Positive Updates
Net Sales Increase
Fiscal year 2025 saw a 9.5% increase in net sales, reaching $73 million compared to $66.7 million in fiscal year 2024.
Negative Updates
Net Loss for Fiscal Year
OCC recorded a net loss of $1.5 million or $0.18 per share for fiscal year 2025, though this was an improvement from the $4.2 million loss in 2024.
Read all updates
Q4-2025 Updates
Positive
Negative
Net Sales Increase
Fiscal year 2025 saw a 9.5% increase in net sales, reaching $73 million compared to $66.7 million in fiscal year 2024.
Read all positive updates
Company Guidance
During the Optical Cable Corporation's Fourth Quarter and Fiscal Year 2025 Earnings Conference Call, guidance highlighted several key financial metrics and strategic initiatives that reflect the company's performance and future outlook. The company reported a 9.5% increase in net sales, reaching $73 million, with gross profit growing by 24.1% to $22.6 million. The gross profit margin improved to 30.9%, up from 27.3% in the previous year. SG&A expenses as a percentage of net sales decreased, contributing to improved operating leverage. The strategic collaboration with Lightera is expected to bolster future growth, particularly in the data center and enterprise sectors, as demand for cloud computing and AI accelerates. Despite recording a net loss of $1.5 million for the year, OCC remains optimistic about capturing new opportunities and expanding its market presence in fiscal year 2026 and beyond.Optical Cable Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
72
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 73.73M | 73.04M | 66.67M | 72.17M | 69.08M | 59.14M |
| Gross Profit | 23.34M | 22.60M | 18.20M | 22.29M | 20.51M | 16.27M |
| EBITDA | 1.00M | 385.24K | -2.16M | 4.31M | 469.89K | -766.62K |
| Net Income | -744.57K | -1.45M | -4.21M | 2.07M | -347.00K | 6.61M |
Balance Sheet | ||||||
| Total Assets | 38.77M | 40.06M | 40.36M | 43.88M | 40.56M | 37.92M |
| Cash, Cash Equivalents and Short-Term Investments | 125.87K | 237.51K | 244.25K | 1.47M | 216.00K | 132.00K |
| Total Debt | 8.98M | 11.54M | 12.95M | 11.00M | 10.53M | 8.32M |
| Total Liabilities | 17.67M | 18.49M | 19.52M | 19.16M | 18.40M | 15.71M |
| Stockholders Equity | 21.11M | 21.57M | 20.84M | 24.72M | 22.16M | 22.21M |
Cash Flow | ||||||
| Free Cash Flow | -455.17K | 1.12M | -1.23M | -918.52K | -1.89M | 1.92M |
| Operating Cash Flow | -93.55K | 1.41M | -857.02K | -395.68K | -1.59M | 2.12M |
| Investing Cash Flow | -405.76K | -317.20K | -67.14K | 1.43M | -292.46K | -192.87K |
| Financing Cash Flow | 496.87K | -1.10M | -300.29K | 219.80K | 1.96M | -1.93M |
Optical Cable Technical Analysis
Neutral
8.51
Price Trends
11.17
Positive
8.57
Positive
7.99
Positive
Market Momentum
0.90
Negative
50.00
Neutral
45.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Neutral. The current price of 8.51 is below the 20-day moving average (MA) of 12.48, below the 50-day MA of 11.17, and above the 200-day MA of 7.99, indicating a neutral trend. The MACD of 0.90 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCC.
Optical Cable Peers Comparison
UnderperformOutperform
Sector (61)
OCC
Optical Cable
12.30
9.47
334.63%
AIRG
Airgain
6.79
2.77
68.91%
AMPG
AmpliTech Group
5.18
2.82
119.49%
FKWL
Franklin Wireless
2.86
-1.32
-31.58%
Optical Cable Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Optical Cable Refinances Real Estate with New Loan Agreement
Positive
May 6, 2026
On April 30, 2026, Optical Cable Corporation entered into a new $2.65 million business loan agreement and promissory note with Freedom First Federal Credit Union, using its Roanoke, Va., real estate as collateral and simultaneously paying off its ...
Executive/Board ChangesShareholder Meetings
Optical Cable Shareholders Reelect Board and Approve Compensation
Positive
Apr 1, 2026
On March 31, 2026, Optical Cable Corporation held its annual shareholder meeting in Roanoke, Virginia, where investors re-elected all five nominated directors to serve until the next annual meeting. Shareholders also ratified the appointment of Cr...
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.