Omega Flex (OFLX) AI Stock Analysis

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Omega Flex

(NASDAQ:OFLX)

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Rating:65Neutral

Price Target:$28.00▲(19.15% Upside)

Action:reiterated

Date:10/31/26

The score is primarily supported by a very conservative balance sheet and continued profitability, but is held back by the recent deterioration in cash conversion/free cash flow and margin compression versus prior years. Technicals are mixed with a weaker longer-term trend, while the high dividend yield partly offsets a relatively elevated P/E.

Positive Factors

Specialized Product PortfolioOmega Flex serves several building and industrial applications with specialized flexible metal piping and hose products. This product focus supports a defined market position and diversified end-use exposure, helping the business remain relevant across construction, renovation, and equipment-related demand.

Negative Factors

Weak Revenue TrendA largely stagnant multi-year revenue profile limits operating leverage and makes sustained earnings expansion more difficult. Continued dependence on construction, renovation, and industrial demand leaves growth reliant on recovering unit volumes or improved product mix rather than an established upward sales trajectory.

Omega Flex (OFLX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $237.22M
Dividend Yield: 5.79%
Average Volume (3M): 37.45K
Price to Earnings (P/E): 22.4
Beta (1Y): 1.02
Revenue Growth: -2.00%
EPS Growth: -34.60%
Country: US
Employees: 172
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Omega Flex Business Overview & Revenue Model

Company Description

Omega Flex, Inc. and its affiliated companies operate as an international manufacturer and distributor of flexible metal hosing and related accessories, catering to markets across North America and beyond. Their product portfolio includes versatile g...

How the Company Makes Money

Omega Flex makes money primarily by manufacturing and selling flexible metal piping and hose products to the construction and industrial supply channels. Its key revenue stream is product sales of CSST gas piping systems (notably TracPipe), which are...

Omega Flex Financial Statement Overview

Summary

Overall fundamentals are mixed: profitability remains solid (TTM gross margin ~51.7%, net margin ~10.7%), and the balance sheet is very strong with minimal leverage (TTM debt-to-equity ~0.05). However, multi-year margin compression versus 2021–2024 and weakened cash generation (FCF down ~34.6% with operating cash flow ~0.58x net income) meaningfully weigh on the score.

Income Statement

62Positive

Balance Sheet

86Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	98.05M	98.30M	101.68M	111.47M	125.49M	130.01M
Gross Profit	49.47M	55.24M	62.26M	68.36M	78.31M	81.53M
EBITDA	13.89M	20.61M	24.88M	28.64M	32.11M	36.08M
Net Income	10.53M	14.83M	18.01M	20.76M	23.62M	26.20M
Balance Sheet
Total Assets	100.11M	104.95M	105.89M	100.23M	97.68M	88.92M
Cash, Cash Equivalents and Short-Term Investments	42.82M	53.23M	51.70M	46.36M	37.70M	32.91M
Total Debt	4.35M	4.76M	5.28M	2.95M	3.21M	3.37M
Total Liabilities	19.45M	20.95M	22.71M	21.38M	26.51M	28.37M
Stockholders Equity	81.01M	84.19M	83.11M	78.69M	70.98M	60.35M
Cash Flow
Free Cash Flow	7.08M	15.35M	18.85M	21.78M	14.30M	24.18M
Operating Cash Flow	8.48M	17.17M	20.86M	23.42M	15.25M	25.15M
Investing Cash Flow	-1.35M	-1.82M	-2.01M	-1.64M	-942.00K	-971.00K
Financing Cash Flow	-13.73M	-13.73M	-13.53M	-13.12M	-9.49M	-14.87M

Omega Flex Technical Analysis

Technical Analysis SentimentNegative

Last Price23.50

Price Trends

50DMA25.54Negative

100DMA27.36Negative

200DMA29.23Negative

Market Momentum

MACD-0.37Positive

RSI36.74Neutral

STOCH6.19Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OFLX, the sentiment is Negative. The current price of 23.50 is below the 20-day moving average (MA) of 25.24, below the 50-day MA of 25.54, and below the 200-day MA of 29.23, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OFLX.

Omega Flex Risk Analysis

Omega Flex disclosed 24 risk factors in its most recent earnings report. Omega Flex reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

1 New Risk

1.PART II - OTHER INFORMATION Item 1 – Legal Proceedings 35 Item 1A – Risk Factors 35Q2, 2026

Omega Flex Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

OFLX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	71Outperform	$121.70B	32.70	24.71%	0.79%	11.87%	3.61%
PPIH	69Neutral	$242.00M	15.38	17.21%	―	24.78%	52.53%
NPO	68Neutral	$5.82B	92.86	3.97%	0.46%	16.42%	-27.79%
GTES	67Neutral	$6.30B	17.30	10.70%	―	3.98%	57.29%
OFLX	65Neutral	$237.22M	22.38	12.75%	5.79%	-2.00%	-34.60%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLS	63Neutral	$10.86B	42.83	11.35%	1.02%	0.21%	-42.26%

* Industrials Sector Average

Performance Comparison

OFLX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
OFLX	Omega Flex	23.50	-3.08	-11.59%
NPO	Enpro Industries, Inc.	274.88	56.84	26.07%
FLS	Flowserve	85.66	16.53	23.92%
PPIH	Perma-Pipe International	29.53	2.18	7.95%
PH	Parker-Hannifin Corp	965.17	116.07	13.67%
GTES	Gates Industrial Corp	25.09	2.38	10.48%

Omega Flex Corporate Events

Business Operations and StrategyDividends

Omega Flex Declares Regular Quarterly Dividend for Q3

Positive

Sep 18, 2026

On September 18, 2026, Omega Flex, Inc. announced that its Board of Directors declared a regular quarterly dividend of $0.34 per share for the third quarter of 2026, payable on October 14, 2026, to shareholders of record as of September 30, 2026. The...

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.

Date of analysis: Oct 31, 2026

Omega Flex AI Stock Analysis