One-glance verdict
Overvalued
$6.43 our estimate vs market $14.78
130% above our estimate, beyond the bull case
Fundamentals snapshot
Optical Cable Corporation
OCC · NGM · Technology · Communication Equipment
Current price
$14.78
52-week range
$4.02 - $27.98
Market cap
$130.69M
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 389.0% above its 5-year average P/E.
What this company does
Optical Cable Corporation
Optical Cable Corporation makes and sells the physical "plumbing" for computer networks, like high-speed fiber optic cables and all the parts needed to connect them. The company primarily earns money from sales to the enterprise market (large businesses and organizations) and the military, which need reliable and secure connections for their data. As the world's demand for faster data transfer grows, so does the potential need for the specialized cables and equipment that OCC provides.
How the company got here
Founded in 1983, Optical Cable Corporation (OCC) started by developing extremely durable fiber optic cables for the U.S. military. This early focus on creating products for harsh environments established its reputation for quality and performance. Over the years, OCC expanded by acquiring companies that added copper-based products and specialized connectors to its portfolio, allowing it to offer more complete communication systems. The company went public in 1996 and now sells its products in over 70 countries.
What it actually does
Think of OCC as a company that makes the physical 'roads' for data. They manufacture the fiber optic and copper cables that carry internet, video, and voice information within buildings, between data centers, and even in challenging locations like military fields or industrial sites. In addition to the cables themselves, they also make all the connecting pieces like jacks, panels, and enclosures needed to build a complete data network. Essentially, they provide the underlying physical infrastructure that allows digital communication to happen.
Fiber Optic and Copper Cabling
This is the core of OCC's business, where they manufacture and sell a wide variety of cables. This includes fiber optic cables, which use light to send massive amounts of data quickly, and traditional copper cables, like the ones you might see plugged into your office computer. Customers, ranging from businesses setting up office networks to large data centers, buy these cables to build out their communication infrastructure. This part of the business is foundational, providing the essential products for all their other offerings.
Connectivity Solutions
Beyond just the cables, OCC sells all the necessary components to connect them and create a functioning network. This includes things like wall mounts, patch panels (which act like a switchboard for data lines), connectors, and the racks and cabinets that house all this equipment. This segment is important because it allows OCC to sell a complete package to its customers, rather than just one piece of the puzzle. By providing these integrated systems, they make it easier for businesses to build and manage their data networks.
Harsh Environment and Specialty Products
This is a specialized but important part of OCC's business that leverages its original expertise in military-grade equipment. They create extra-durable cables and connectors for customers who need reliable communication in tough conditions, such as the military, mining operations, and industrial factories. These products are designed to withstand vibration, extreme temperatures, and moisture. While a smaller part of their overall business, it's a key differentiator that sets them apart from competitors who only make standard commercial products.
What management is betting on now
The company is focused on increasing its sales in growing markets like data centers and enterprise networks, which are seeing high demand. They are also working to improve their profitability by increasing sales volume, which helps to spread their fixed manufacturing costs over more products, a concept known as operating leverage (the ability to earn more profit from each additional sale without increasing costs at the same rate). A recent strategic partnership with a company called Lightera is expected to expand their product offerings, particularly for data centers, and help secure their supply chain (the network of companies that provide the raw materials needed to make their products).
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
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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 $14.78
Our most-likely fair value is $6.43 a share — about 56.5% below today's price of $14.78, so the stock currently looks expensive (overvalued).
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 $6.44M Interest coverage -4.77x Neither company has much profit cushion over interest right now.
Total debt $242.66M 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 389.0% 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)
50.97x
Forward P/E
—
P/B
7.95x
P/S
1.58x
EV/EBITDA
33.23x
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
—
Payout ratio
0.0%
Last ex-div date
2015-10-28