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Optical Cable
(NASDAQ:OCC)
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Rating:62Neutral
Price Target:
$15.00
▲(12.28% Upside)
Action:Reiterated
Date:09/12/26
The score is driven primarily by improving financial performance and a sharply strengthened balance sheet, supported by a notably bullish earnings-call outlook and expanding backlog. Offsetting these positives are weak cash-flow quality/consistency and a demanding valuation (high P/E), while technical indicators point to neutral-to-soft momentum in the intermediate term.
Positive Factors
Strong Revenue Growth
The 22% quarterly sales increase, together with 18.3% growth during the first nine months, indicates broadening demand across enterprise, data center and specialty markets. Continued expansion across multiple end markets can strengthen operating scale and support durable revenue growth over the next several quarters.
Negative Factors
Thin and Historically Volatile Profitability
Despite the recent return to profit, thin operating margins leave limited protection against cost increases, product-mix changes or weaker volumes. The history of alternating profits and losses also makes the current improvement less dependable until stronger operating profitability is sustained across additional reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The 22% quarterly sales increase, together with 18.3% growth during the first nine months, indicates broadening demand across enterprise, data center and specialty markets. Continued expansion across multiple end markets can strengthen operating scale and support durable revenue growth over the next several quarters.
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
$129.27M
Dividend Yield2.58%
Average Volume (3M)270.59K
Price to Earnings (P/E)50.3
Beta (1Y)1.37
Revenue Growth13.86%
EPS GrowthN/A
CountryUS
Employees348
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.29
Shares Outstanding8,842,024
10 Day Avg. Volume344,407
30 Day Avg. Volume270,593
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)2.94
Price to Sales (P/S)0.87
P/FCF Ratio56.61
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.3
Revenue Forecast (FY)$88.60M
Optical Cable Business Overview & Revenue Model
Company Description
Optical Cable Corporation (OCC), including its subsidiaries, specializes in producing and distributing comprehensive fiber optic and copper solutions for data communication infrastructure. Its main focus is the enterprise sector, serving clients b...
How the Company Makes Money
OCC makes money primarily by selling manufactured cabling and connectivity products to customers that build, expand, or maintain communications networks. Key revenue streams include: (1) Fiber optic cable sales, including standard and custom fiber...
Optical Cable Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 21, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. OCC reported substantial growth in revenue, gross profit, margins and net income, along with rising backlog, strong demand across key markets, improved working capital and continued capacity expansion efforts. The company faces explicit supply-chain constraints, longer data center sales cycles, higher operating costs and uncertainty around seasonality, demand duration and future margins, but management said demand remains strong and that OCC is managing the challenges effectively.Positive Updates
Strong Third-Quarter Revenue Growth
Consolidated net sales increased 22% year over year to $24.3 million in the third quarter of fiscal 2026 from $19.9 million. Growth was largely driven by strong demand in OCC's enterprise, data center and specialty markets.
Negative Updates
Optical Fiber Shortages and Supply-Chain Delays
The industry continues to experience optical fiber shortages due to excessive product demand from data centers and other applications. OCC has also experienced industry-wide delays, longer lead times for certain raw materials and some limitations on product shipments. Management expects these challenges to continue.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue Growth
Consolidated net sales increased 22% year over year to $24.3 million in the third quarter of fiscal 2026 from $19.9 million. Growth was largely driven by strong demand in OCC's enterprise, data center and specialty markets.
Read all positive updates
Company Guidance
Management said the second half of 2026 would be “very strong” and that they “continue to believe that, that’s going to be the case,” with a “robust backlog and forward load that are increasing” and sales increasing; sales order backlog and forward load stood at $13.5 million at the end of the third quarter, compared to $13.3 million as of April 30, 2026, $10.4 million as of January 31, 2026, and $7.3 million as of October 31, 2025, while “most of our sales order backlog and forward load is expected to be shipped within 2 to 3 quarters.” Management said the industry is seeing “high levels of demand,” there “does not appear to be any indication that demand is weakening” and there “doesn't appear to be an indication of demand weakening in the near term,” but it “can't specifically comment” on how long higher backlog or the increased demand cycle will continue, and “may not experience some typical seasonality” in the first quarter, which has “many holidays.” They reported “strong sales and demand in August,” but said it was “too early to comment on September,” would not provide guidance on margin progression throughout fiscal year 2027, and said they do not believe industry challenges will prevent “strong top line revenue growth during the remainder of fiscal year 2026”; working capital was $19.2 million versus $13.9 million at fiscal year-end 2025, and management believes working capital and the credit revolver are sufficient to support and sustain needs.Optical Cable Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 82.77M | 73.04M | 66.67M | 72.17M | 69.08M | 59.14M |
| Gross Profit | 28.38M | 22.60M | 18.20M | 22.29M | 20.51M | 16.27M |
| EBITDA | 4.27M | 385.24K | -2.16M | 4.31M | 469.89K | -766.62K |
| Net Income | 2.56M | -1.45M | -4.21M | 2.07M | -347.00K | 6.61M |
Balance Sheet | ||||||
| Total Assets | 44.85M | 40.06M | 40.36M | 43.88M | 40.56M | 37.92M |
| Cash, Cash Equivalents and Short-Term Investments | 297.19K | 237.51K | 244.25K | 1.47M | 216.00K | 132.00K |
| Total Debt | 11.08M | 11.54M | 12.95M | 11.00M | 10.53M | 8.32M |
| Total Liabilities | 20.58M | 18.49M | 19.52M | 19.16M | 18.40M | 15.71M |
| Stockholders Equity | 24.27M | 21.57M | 20.84M | 24.72M | 22.16M | 22.21M |
Cash Flow | ||||||
| Free Cash Flow | 436.75K | 1.12M | -1.23M | -918.52K | -1.89M | 1.92M |
| Operating Cash Flow | 944.97K | 1.41M | -857.02K | -395.68K | -1.59M | 2.12M |
| Investing Cash Flow | -535.06K | -317.20K | -67.14K | 1.43M | -292.46K | -192.87K |
| Financing Cash Flow | -534.13K | -1.10M | -300.29K | 219.80K | 1.96M | -1.93M |
Optical Cable Technical Analysis
Positive
13.36
Price Trends
14.92
Negative
14.90
Negative
10.87
Positive
Market Momentum
-0.39
Negative
51.96
Neutral
65.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCC, the sentiment is Positive. The current price of 13.36 is below the 20-day moving average (MA) of 14.17, below the 50-day MA of 14.92, and above the 200-day MA of 10.87, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 51.96 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCC.
Optical Cable Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $49.57B | 75.66 | 22.82% | ― | 32.57% | 367.53% | |
71 Outperform | $83.15B | -9.97 | -300.07% | ― | 83.22% | -24212.72% | |
62 Neutral | $129.27M | 50.29 | 11.50% | 2.58% | 13.86% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $407.79M | -58.37 | -2.90% | ― | -27.40% | -2843.33% | |
52 Neutral | $8.95B | -135.29 | -5.61% | ― | 61.85% | 76.82% | |
46 Neutral | $614.37M | -23.73 | -18.82% | 4.42% | 15.75% | 78.71% |
* Technology Sector Average
OCC
Optical Cable
13.20
3.87
41.48%
ADTN
Adtran
7.04
-3.40
-32.57%
CIEN
Ciena
319.64
183.74
135.20%
CLFD
Clearfield
28.73
-4.32
-13.07%
AAOI
Applied Optoelectronics
95.76
66.20
223.95%
LITE
Lumentum Holdings
835.03
666.26
394.77%
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.