One-glance verdict
Undervalued
$45.20 our estimate vs market $25.62
43% below our estimate, below the bear case
Fundamentals snapshot
Omega Flex, Inc.
OFLX · NGM · Industrials · Specialty Industrial Machinery
Current price
$25.62
52-week range
$24.75 - $37.92
Market cap
$258.62M
Balance sheet
Healthy
8.51x Adequate
Net cash $43.37M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 14.0% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 21.7x P/E vs peer median 23.1x (6.0% cheaper).
- Risk Operating margin compressed from 24.7% to 12.7% over 3 years.
What this company does
Omega Flex, Inc.
Omega Flex makes and sells flexible metal hoses and pipes, mostly for gas and other fluids in homes, businesses, and special places like hospitals. Their money primarily comes from selling these products to builders and manufacturers, which matters because it shows how much demand there is for their specialized piping solutions in various industries.
How the company got here
Omega Flex, Inc. was founded in 1975, initially focusing on manufacturing metal hose and braid for industrial uses. A significant turning point came in 1996 when the company was acquired and began focusing on developing TracPipe, a corrugated stainless steel tubing (CSST) system for gas piping. This strategic shift led to dramatic sales growth. In 2005, Omega Flex became an independent, publicly traded company. Since then, it has continued to innovate, introducing products like CounterStrike CSST, DoubleTrac, and MediTrac, and has expanded its reach internationally. The company's history is marked by a commitment to engineering, product development, and meeting stringent industry standards.
What it actually does
Omega Flex manufactures and sells flexible metal hoses, piping systems, and related fittings. Think of them as the company that makes the specialized, bendable metal tubes and connectors used to safely transport various substances like natural gas, propane, medical gases, and even industrial fluids. These products are designed to be more flexible, easier to install, and safer than traditional rigid pipes in many applications. They serve a wide range of customers, from home builders and contractors to hospitals and industrial manufacturers.
TracPipe and CounterStrike CSST
This is Omega Flex's core business and likely its largest revenue generator. TracPipe and CounterStrike are brand names for their corrugated stainless steel tubing (CSST) systems used for fuel gas piping in homes and commercial buildings. Instead of using heavy, rigid iron pipes, these flexible metal tubes are installed to carry natural gas or propane from the meter to appliances like stoves, furnaces, and water heaters. They are popular because they can be easier and faster for installers to route through walls and floors, potentially saving on labor costs and reducing the risk of leaks associated with more complex jointing of rigid pipes.
Medi-Trac
Medi-Trac is a specialized product line focused on flexible tubing for medical gas applications. These systems are used in hospitals, clinics, and laboratories to safely deliver gases like oxygen or nitrous oxide to patient care areas. The key advantage here is the high purity and safety required in healthcare settings, where flexible, reliable, and easily installed piping is crucial. This segment represents a smaller but important part of Omega Flex's business, catering to the stringent demands of the healthcare industry.
DoubleTrac and DEF-Trac
These product lines, DoubleTrac and DEF-Trac, are designed for containment applications. DoubleTrac, for instance, is used for underground fuel piping, offering a double-walled system for added safety and environmental protection, particularly in retail gas stations or for backup power generation systems. DEF-Trac likely serves a similar purpose in containing fluids. These products are crucial in industries where preventing leaks and environmental contamination is paramount, such as in fuel transportation and storage.
Industrial Applications
Beyond construction and healthcare, Omega Flex also produces flexible metal hoses and assemblies for a variety of industrial uses. This can include applications in the petrochemical industry, manufacturing, transportation, and even specialized areas like cryogenics (handling extremely cold substances). These hoses are engineered to withstand harsh conditions, such as high temperatures, pressures, and corrosive materials, providing flexible connections in complex industrial machinery and processes. This segment diversifies the company's customer base and showcases the versatility of its metal-forming expertise.
What management is betting on now
Omega Flex's management is focused on strengthening its core business of flexible gas piping while also expanding into related, higher-value specialty areas. They are investing in new product development and improvements to existing product lines, aiming to offer enhanced safety, efficiency, and ease of installation for their customers. A key strategy involves continuing to educate installers and specifiers about the benefits of their flexible piping systems, ensuring they remain the preferred choice. Management also sees opportunities in expanding their reach into new markets and applications, such as their medical gas tubing and specialized industrial hoses, to diversify revenue streams and sustain profitable growth.
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 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
FY2026 Q2
$1.59M
Revenue
$24.06M
Net income
$2.67M
Diluted EPS
0.27
Operating cash flow
$1.77M
Free cash flow
$1.59M
Fetching…
Sources
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
Fetching…
Sources
Is it cheap or expensive?
Fair value $45.20 vs current price $25.62
Our most-likely fair value is $45.20 a share — about 76.4% above today's price of $25.62, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $43.4M - more cash than debt. Interest coverage 8.5x.
Net debt
$-43.37M
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 and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OFLX
BASELINE
Omega Flex, Inc.
Total debt $4.54M Interest coverage 8.51x This is the baseline the peer rows are being compared against.
Total debt $6.79M Interest coverage 60.55x +611% vs OFLX Carries about 7.1x more debt cushion than OFLX.
Total debt $1.47B Interest coverage 4.37x -49% vs OFLX Carries about 1.9x less debt cushion than OFLX.
Total debt $2.54B Interest coverage 5.24x -38% vs OFLX Carries about 1.6x less debt cushion than OFLX.
Total debt $3.26B Interest coverage 12.51x +47% vs OFLX Carries about 1.5x more debt cushion than OFLX.
Total debt $500.00M Interest coverage 0.52x -94% vs OFLX Carries about 16.3x less debt cushion than OFLX.
What you should know
The case for and against OFLX
3 Rewards
1 Risk
Rewards
-
Returns 14.0% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 21.7x P/E vs peer median 23.1x (6.0% cheaper).
Risks
-
Operating margin compressed from 24.7% to 12.7% 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)
21.71x
Forward P/E
—
P/B
3.15x
P/S
2.68x
EV/EBITDA
14.44x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
57.8%
Operating margin
12.7%
Net margin
12.3%
ROE
14.0%
ROA
8.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.06x
Current ratio
5.63x
Quick ratio
4.46x
Total debt
$4.54M
Total cash
$47.91M
Growth
How the business has been compounding
Revenue TTM
$96.59M
Revenue 5Y CAGR
-6.8%
EPS TTM
1.18
EPS 5Y CAGR
-14.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.54M
Free CF TTM
$15.35M
FCF margin
15.9%
Dividend
Shareholder payout
Yield
5.3%
Payout ratio
115.7%
Last ex-div date
2026-09-30