One-glance verdict
Overvalued
$0.56 our estimate vs market $5.41
867% above our estimate, beyond the bull case
Fundamentals snapshot
Syntec Optics Holdings, Inc.
OPTX · NCM · Technology · Electronic Components
Current price
$5.41
52-week range
$1.18 - $14.92
Market cap
$217.91M
Balance sheet
Healthy
-0.65x Concerning
Net cash $9.71M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 4.1% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -11.6% last year — the company lost money on shareholders' equity.
- Risk Net debt grew 4.2% over 3 years.
What this company does
Syntec Optics Holdings, Inc.
Syntec Optics Holdings, Inc. makes special lenses and optical parts for things like medical devices and defense equipment. Their money comes from selling these high-tech components and offering related services like custom design and coating. This matters because the demand for these precision optics is growing in important industries.
How the company got here
Syntec Optics Holdings, Inc. was founded in 1981 and is based in Rochester, New York. It has grown into a fully integrated manufacturer of optics and photonics components, sub-systems, and optical systems. The company's location in Rochester, a hub for imaging companies, has provided advantages such as access to new technologies and skilled engineers. Syntec Optics is recognized as one of the largest independent custom manufacturers of polymer optics in the United States. Over the years, the company has expanded its capabilities to include optical elements, opto-mechanical integration, electro-optics, and software development, serving a global customer base.
What it actually does
Syntec Optics designs and manufactures advanced optics and photonics products. These products are critical components used in a variety of high-tech applications. The company's expertise spans the entire production process, from initial design and tooling to precision machining, molding, coating, and assembly of complex optical and electro-optical systems. Syntec Optics emphasizes its vertically integrated model, which allows for tight control over quality and the ability to meet demanding specifications for mission-critical applications. Their products are found in everything from night-vision systems and medical diagnostic equipment to satellite communications and AI data centers.
Defense
Syntec Optics has a long-standing presence in the defense sector, supplying precision optics and opto-mechanical components for various military applications. This includes components for night-vision systems, missile-guidance systems, and military LED lighting. The company is also involved in developing optics for advanced defense technologies such as AR/VR wearable displays, ballistic windows, and AI-enabled camera components for military use. These products are crucial for enhancing the capabilities of defense platforms and ensuring the performance of critical systems in demanding environments.
Space and Satellite Communications
This segment focuses on manufacturing high-precision optics for the growing space industry. Syntec Optics produces components for Low Earth Orbit (LEO) satellites, satellite communications, space-based tracking, and reconnaissance systems. The company has been increasing its production capacity for commercial satellite laser optics to meet the rising demand from this sector. Their optics are designed to withstand the harsh conditions of space while maintaining optimal performance, supporting advancements in space exploration and communication.
AI Data Centers and Photonics
Syntec Optics is actively involved in providing optical solutions for the rapidly expanding field of artificial intelligence and data centers. They design and manufacture components like micro-connectors and precision microlens arrays that are essential for high-speed optical transceivers. These components facilitate the increased optical bandwidth required by AI clusters and advanced data processing. By supplying these critical optical subcomponents, Syntec Optics supports the infrastructure that powers modern AI technologies.
Life Sciences and Medical
In the life sciences and medical sector, Syntec Optics supplies optical components and assemblies for a range of diagnostic and healthcare applications. This includes optics for blood analysis, point-of-care diagnostic devices, and surgical equipment. The company also produces disposable diagnostic cartridges used for measuring various health indicators. These precision optical components are vital for accurate medical diagnoses and the development of advanced healthcare technologies.
What management is betting on now
Syntec Optics is strategically focusing on expanding its presence in the communications and sensing markets, often through acquisitions of other companies in the photonics industry. The company is investing in enhancing its manufacturing capabilities by automating processes and increasing production capacity at its Rochester facility. Management is also prioritizing growth in new end markets such as communications and sensing, while continuing to develop its portfolio of U.S.-based advanced manufacturing processes. They are also exploring opportunities to accelerate long-term growth through disciplined investment in advanced manufacturing equipment, automation, and technical capabilities.
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
$43.82K
FY2024 Q4
$12.13K
FY2025 Q1
$84.56K
FY2025 Q2
$-548.09K
FY2025 Q3
$496.25K
FY2025 Q4
$-4.38K
FY2026 Q1
$175.29K
FY2026 Q2
$-1.08M
Revenue
$8.27M
Net income
$256.24K
Diluted EPS
0.01
Operating cash flow
$-298.99K
Free cash flow
$-1.08M
Fetching…
Sources
Revenue
$6.51M
Net income
$-897.86K
Diluted EPS
-0.02
Operating cash flow
$469.61K
Free cash flow
$175.29K
Fetching…
Sources
Revenue
$7.51M
Net income
$-343.84K
Diluted EPS
-0.01
Operating cash flow
$-3.89K
Free cash flow
$-4.38K
Fetching…
Sources
Revenue
$6.95M
Net income
$-1.43M
Diluted EPS
-0.04
Operating cash flow
$535.29K
Free cash flow
$496.25K
Fetching…
Sources
Revenue
$6.56M
Net income
$-343.92K
Diluted EPS
-0.01
Operating cash flow
$-158.05K
Free cash flow
$-548.09K
Fetching…
Sources
Revenue
$7.07M
Net income
$323.67K
Diluted EPS
0.01
Operating cash flow
$299.29K
Free cash flow
$84.56K
Fetching…
Sources
Revenue
$7.32M
Net income
$-1.54M
Diluted EPS
-0.05
Operating cash flow
$623.77K
Free cash flow
$12.13K
Fetching…
Sources
Revenue
$0.00
Net income
$-13.29K
Diluted EPS
0.00
Operating cash flow
$417.29K
Free cash flow
$43.82K
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.56 vs current price $5.41
Our most-likely fair value is $0.56 a share — about 89.7% below today's price of $5.41, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $9.7M - more cash than debt. Interest coverage -0.7x.
Net debt
$-9.71M
Interest coverage
-0.65x
Syntec Optics Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OPTX
BASELINE
Syntec Optics Holdings, Inc.
Total debt $4.34M Interest coverage -0.65x This is the baseline the peer rows are being compared against.
Total debt $10.93M Interest coverage -4.00x Neither company has much profit cushion over interest right now.
Total debt $1.16M Interest coverage -13.30x Neither company has much profit cushion over interest right now.
Total debt $1.48M Interest coverage 151.74x This peer still has a real interest-payment cushion, while OPTX does not.
Total debt $3.52M Interest coverage 10.35x This peer still has a real interest-payment cushion, while OPTX does not.
Total debt $334.50M Interest coverage 0.38x This peer still has a real interest-payment cushion, while OPTX does not.
What you should know
The case for and against OPTX
2 Rewards
3 Risks
Rewards
-
Revenue grew 4.1% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -11.6% last year — the company lost money on shareholders' equity.
-
Net debt grew 4.2% over 3 years.
-
Operating margin compressed from 5.4% to 3.9% 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)
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Forward P/E
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P/B
7.15x
P/S
7.45x
EV/EBITDA
220.67x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
19.6%
Operating margin
3.9%
Net margin
-8.3%
ROE
-11.6%
ROA
-2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
5.97x
Quick ratio
4.29x
Total debt
$4.34M
Total cash
$14.05M
Growth
How the business has been compounding
Revenue TTM
$29.24M
Revenue 5Y CAGR
-2.3%
EPS TTM
-0.07
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$702.01K
Free CF TTM
$28.34K
FCF margin
0.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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