One-glance verdict
Within fair range
$6.43 our estimate vs market $8.96
39% above our estimate
Fundamentals snapshot
Optical Cable Corporation
OCC · NGM · Technology · Communication Equipment
Current price
$8.96
52-week range
$4.02 - $27.98
Market cap
$79.22M
Balance sheet
Distressed
-0.45x Concerning
Net debt $10.78M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 37.0% last year.
- Reward Returns 15.6% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 196.4% above its 5-year average P/E.
What this company does
Optical Cable Corporation
Optical Cable Corporation makes and sells cables and parts for computer networks, like the wires that connect computers in an office or data center. Most of their sales come from these network products, which are important for businesses that need to send lots of data quickly.
How the company got here
Optical Cable Corporation (OCC) started in 1983, aiming to provide essential communication infrastructure. Over the decades, it has grown by focusing on manufacturing and selling the physical cables and connection points that make modern data networks possible. The company's journey has been shaped by the increasing demand for faster and more reliable data transmission, leading it to develop a wide range of products for various network needs.
What it actually does
Think of OCC as a builder of the digital highways. They make the physical wires (both fiber optic and copper) and all the little pieces that connect them, like boxes, plugs, and panels. These are the unseen components that allow your internet to work, data centers to function, and communication systems to operate smoothly. Essentially, they provide the backbone for data to travel from one place to another.
Fiber Optic and Copper Data Communications Cabling
This is the core of OCC's business, where they produce the actual cables that carry information. Fiber optic cables use light to send data incredibly fast over long distances, making them ideal for high-speed internet and large networks. Copper cables, while older technology, are still used for shorter distances and specific applications within buildings. OCC sells these cables to companies that build and manage communication networks, ensuring data can flow reliably.
Fiber Optic and Copper Connectivity Solutions
Beyond just the cables, OCC also makes all the necessary accessories to connect and manage them. This includes things like wall mounts, special boxes (enclosures) to protect the connections, connectors that plug into devices, and panels that organize many cables in one place. These products are crucial for setting up and maintaining efficient data centers, office networks, and telecommunications closets, ensuring everything is neatly and securely connected.
Specialty and Harsh Environment Solutions
OCC also caters to niche markets that require highly durable or specialized connection products. This includes cables and connectors designed for military use or other demanding environments where standard equipment might fail. They also offer specific types of connectors, like cylindrical ones, for unique industrial or specialized applications. This segment shows OCC's ability to adapt its technology for unique and tough conditions.
What management is betting on now
OCC's strategy likely revolves around meeting the ever-growing demand for data and faster networks. This means continuing to innovate in fiber optic technology, which offers superior speed and capacity compared to copper. They are probably focused on expanding their reach within the enterprise market, which includes businesses and data centers that require robust and high-performance networking solutions. By providing reliable cabling and connectivity, OCC aims to be a key supplier as digital infrastructure continues to expand globally.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-1.58M
FY2025 Q1
$2.60M
FY2025 Q2
$73.39K
FY2025 Q3
$-2.28M
FY2025 Q4
$718.84K
FY2026 Q1
$1.03M
FY2026 Q2
$-2.60M
FY2026 Q3
$1.29M
Revenue
—
Net income
$1.86M
Diluted EPS
—
Operating cash flow
$1.51M
Free cash flow
$1.29M
Fetching…
Sources
Revenue
—
Net income
$1.05M
Diluted EPS
—
Operating cash flow
$-2.53M
Free cash flow
$-2.60M
Fetching…
Sources
Revenue
—
Net income
$-397.53K
Diluted EPS
—
Operating cash flow
$1.17M
Free cash flow
$1.03M
Fetching…
Sources
Revenue
—
Net income
$48.61K
Diluted EPS
—
Operating cash flow
$797.33K
Free cash flow
$718.84K
Fetching…
Sources
Revenue
—
Net income
$301.89K
Diluted EPS
—
Operating cash flow
$-2.20M
Free cash flow
$-2.28M
Fetching…
Sources
Revenue
—
Net income
$-697.92K
Diluted EPS
—
Operating cash flow
$141.37K
Free cash flow
$73.39K
Fetching…
Sources
Revenue
—
Net income
$-1.11M
Diluted EPS
—
Operating cash flow
$2.67M
Free cash flow
$2.60M
Fetching…
Sources
Revenue
—
Net income
$373.46K
Diluted EPS
—
Operating cash flow
$-1.52M
Free cash flow
$-1.58M
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Sources
Is it cheap or expensive?
Fair value $6.43 vs current price $8.96
Our most-likely fair value is $6.43 a share — about 28.2% away from today's price of $8.96, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $10.8M. Interest coverage -0.4x.
Net debt
$10.78M
Interest coverage
-0.45x
Optical Cable Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OCC
BASELINE
Optical Cable Corporation
Total debt $11.08M Interest coverage -0.45x This is the baseline the peer rows are being compared against.
Total debt $8.29M Interest coverage -6.34x Neither company has much profit cushion over interest right now.
Total debt $6.00M Interest coverage -4.77x Neither company has much profit cushion over interest right now.
Total debt $300.70M Interest coverage -0.81x Neither company has much profit cushion over interest right now.
Total debt $334.50M Interest coverage 0.38x This peer still has a real interest-payment cushion, while OCC does not.
What you should know
The case for and against OCC
3 Rewards
1 Risk
Rewards
-
Revenue grew 37.0% last year.
-
Returns 15.6% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 196.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.90x
Forward P/E
—
P/B
4.99x
P/S
0.96x
EV/EBITDA
21.14x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
34.3%
Operating margin
8.7%
Net margin
3.1%
ROE
15.6%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.75x
Current ratio
2.17x
Quick ratio
0.74x
Total debt
$11.08M
Total cash
$297.19K
Growth
How the business has been compounding
Revenue TTM
$87.83M
Revenue 5Y CAGR
1.4%
EPS TTM
0.29
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$944.97K
Free CF TTM
$1.12M
FCF margin
1.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2015-10-28