One-glance verdict
Undervalued
$45.38 our estimate vs market $29.83
34% below our estimate, below the bear case
Fundamentals snapshot
Omega Flex, Inc.
OFLX · NGM · Industrials · Specialty Industrial Machinery
Current price
$29.83
52-week range
$25.58 - $37.92
Market cap
$301.11M
Balance sheet
Healthy
8.51x Adequate
Net cash $45.24M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 15.8% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 4.6% with 21-year payout history.
- Risk Operating margin compressed from 24.7% to 10.0% over 3 years.
What this company does
Omega Flex, Inc.
Omega Flex makes flexible metal pipes, primarily used for carrying natural gas to appliances like stoves and furnaces in homes and other buildings. Their main product is a modern alternative to traditional rigid pipes, which can make installation in construction and renovation projects quicker and cheaper. This means the company's performance is often linked to the health of the housing and construction markets.
How the company got here
Founded in 1975, Omega Flex started by making flexible metal hoses for industrial uses. A key turning point was in 1996 when the company was bought and used to launch the TracPipe brand of flexible gas piping, which grew very quickly. After a reorganization, it became a standalone public company in 2005, trading on the Nasdaq stock exchange. Over the years, it has focused on creating new and improved flexible piping products for specialized markets.
What it actually does
Think of Omega Flex as a company that makes high-tech, flexible metal pipes and tubes instead of the rigid, straight pipes you might be used to seeing. These flexible pipes are easier and often cheaper for builders and contractors to install because they can bend around corners and obstacles. Their products are used to safely carry gases like natural gas in homes and businesses, transport fuels for cars and generators, and move medical gases in hospitals. The company sells these specialized piping systems and all the necessary connectors and fittings to distributors and directly to companies that make other equipment.
Flexible Piping Products
The company operates as a single business focused on manufacturing and selling flexible metal hose and related products. This main business is built around several key product lines, each designed for a specific use. Its most well-known products, TracPipe® and CounterStrike®, are corrugated stainless steel tubes used to pipe natural gas and propane in residential and commercial buildings. Another important product, DoubleTrac®, is a double-walled pipe used for safely containing and moving fuels like gasoline and diesel. A newer line, MediTrac®, is a special copper tubing designed for carrying medical gases in healthcare facilities.
What management is betting on now
The company's main strategy is to keep developing new types of flexible metal pipes for specialized markets where customers will pay for a higher-quality, more efficient product. They focus on replacing traditional rigid pipes by showing customers that flexible alternatives save time and money on installation. Management is also focused on expanding the use of its existing products, like CounterStrike® for gas piping, in both U.S. and international markets. A key part of their plan is continuous innovation, not just creating entirely new products but also improving their current ones with better accessories and fittings.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$3.77M
FY2024 Q3
$3.65M
FY2024 Q4
$9.20M
FY2025 Q1
$1.00M
FY2025 Q2
$5.01M
FY2025 Q3
$2.04M
FY2025 Q4
$7.30M
FY2026 Q1
$-101.00K
Revenue
$23.09M
Net income
$2.08M
Diluted EPS
0.21
Operating cash flow
$608.00K
Free cash flow
$-101.00K
Fetching…
Sources
Revenue
$25.21M
Net income
$3.42M
Diluted EPS
0.34
Operating cash flow
$7.50M
Free cash flow
$7.30M
Fetching…
Sources
Revenue
$24.23M
Net income
$3.69M
Diluted EPS
0.37
Operating cash flow
$2.65M
Free cash flow
$2.04M
Fetching…
Sources
Revenue
$25.52M
Net income
$4.16M
Diluted EPS
0.41
Operating cash flow
$5.46M
Free cash flow
$5.01M
Fetching…
Sources
Revenue
$23.33M
Net income
$3.57M
Diluted EPS
0.35
Operating cash flow
$1.55M
Free cash flow
$1.00M
Fetching…
Sources
Revenue
$26.96M
Net income
$4.68M
Diluted EPS
0.45
Operating cash flow
$9.76M
Free cash flow
$9.20M
Fetching…
Sources
Revenue
$24.88M
Net income
$4.62M
Diluted EPS
0.46
Operating cash flow
$3.99M
Free cash flow
$3.65M
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Sources
Revenue
$24.62M
Net income
$4.50M
Diluted EPS
0.45
Operating cash flow
$4.40M
Free cash flow
$3.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $45.38 vs current price $29.83
Our most-likely fair value is $45.38 a share — about 52.1% above today's price of $29.83, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $45.2M - more cash than debt. Interest coverage 8.5x.
Net debt
$-45.24M
Interest coverage
8.51x
Omega Flex, Inc.'s profit covers its interest bill about 8.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
OFLX
BASELINE
Omega Flex, Inc.
Total debt $4.52M Interest coverage 8.51x This is the baseline the peer rows are being compared against.
Total debt $691.30M Interest coverage 1.72x -80% vs OFLX Carries about 5.0x less debt cushion than OFLX.
Total debt $68.80M Interest coverage 11.29x +33% vs OFLX Carries about 1.3x more debt cushion than OFLX.
Total debt $82.94M Interest coverage 4.48x -47% vs OFLX Carries about 1.9x less debt cushion than OFLX.
Total debt $66.97M Interest coverage 3.89x -54% vs OFLX Carries about 2.2x less debt cushion than OFLX.
Total debt $0.00 Interest coverage 6.86x -19% vs OFLX Carries about 1.2x less debt cushion than OFLX.
What you should know
The case for and against OFLX
3 Rewards
1 Risk
Rewards
-
Returns 15.8% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 4.6% with 21-year payout history.
Risks
-
Operating margin compressed from 24.7% to 10.0% over 3 years.
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)
22.43x
Forward P/E
—
P/B
3.63x
P/S
3.07x
EV/EBITDA
15.44x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
59.2%
Operating margin
10.0%
Net margin
13.6%
ROE
15.8%
ROA
9.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
5.72x
Quick ratio
4.63x
Total debt
$4.52M
Total cash
$49.76M
Growth
How the business has been compounding
Revenue TTM
$98.06M
Revenue 5Y CAGR
-6.8%
EPS TTM
1.33
EPS 5Y CAGR
-14.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$16.23M
Free CF TTM
$15.35M
FCF margin
15.7%
Dividend
Shareholder payout
Yield
4.6%
Payout ratio
76.7%
Last ex-div date
2026-06-23