One-glance verdict
Overvalued
$0.57 our estimate vs market $7.40
1204% above our estimate, beyond the bull case
Fundamentals snapshot
Syntec Optics Holdings, Inc.
OPTX · NCM · Technology · Electronic Components
Current price
$7.40
52-week range
$1.18 - $14.92
Market cap
$298.07M
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 makes and sells highly precise lenses and optical parts that are essential components for high-tech equipment. The company earns its money by supplying these parts to customers in the defense, medical, and industrial sectors for use in things like fingerprint scanners and medical diagnostic tools. This is important because they are a key part of the supply chain (the network of companies involved in creating and delivering a product) for complex and critical technologies.
How the company got here
Founded in 1981, the company started out specializing in making precise optical parts from polymer, which is a type of durable plastic. [6] Over several decades, it grew into a one-stop shop for optics, adding more capabilities like design, assembly, and creating ultra-precise components for a variety of industries. [6] Based in Rochester, New York, a hub for imaging companies, it has become the largest independent custom manufacturer of polymer optics in the United States. [6] A key event in its recent history was a business combination, which helped provide more financial flexibility for the company to grow. [2]
What it actually does
Syntec Optics makes highly advanced and precise lenses and optical components that control light, a field known as photonics. [3, 9] Think of them as tiny, crucial parts inside complex equipment that need to manage light perfectly, from night vision goggles and medical testing devices to satellites and fingerprint scanners. [3, 5] They create these components from materials like specialized polymers and glass. [3] The company doesn't just manufacture these parts; it also helps design, engineer, and assemble them into complete systems for other companies to use in their final products. [5]
Defense
This is a major part of the business where the company supplies critical optical components to the military and defense contractors. [5] These aren't just simple lenses; they are used in advanced equipment like night vision goggles, thermal imaging cameras, missile guidance systems, and augmented reality (AR) displays that show digital information to soldiers. [4, 5, 7] The government and defense firms pay Syntec for these durable, high-precision parts that must perform reliably in mission-critical situations. [7]
Medical
In this area, Syntec Optics creates specialized optical parts for the healthcare industry. [16] These components are essential for medical devices used to diagnose illnesses, such as equipment that analyzes blood, and for various surgical systems. [3, 5] Medical device manufacturers pay Syntec for these custom parts that help doctors and technicians see inside the human body or analyze biological samples with great accuracy. [5] This segment provides a steady stream of business, often for disposable or highly specialized components.
Communications
This is a growing part of the company that focuses on using light to transmit information. Syntec builds optical components for things like low-earth orbit (LEO) satellites, which beam internet service down to Earth. [4] It also makes parts for data centers, which are the backbone of the internet and artificial intelligence (AI), helping them handle massive amounts of information more efficiently. [15, 18] Companies in the space and tech industries pay Syntec to develop and manufacture these high-performance optics.
Consumer
This segment covers a wide range of products that people might use more directly. Syntec makes the tiny, precise lenses and components that go into things like virtual and augmented reality (VR/AR) headsets, systems for self-driving cars, and biometric scanners for fingerprint identification. [3, 4, 5] Tech companies pay Syntec for these parts to enable the advanced features in their consumer electronics and other cutting-edge technology. [16]
What management is betting on now
The company's leadership is focused on growing by acquiring smaller, complementary companies, a strategy known as inorganic growth. [2, 15] They are heavily investing in expanding their business in the defense and communications sectors, particularly with products for AI-enhanced augmented reality (AR) systems for soldiers and optics for satellites. [2, 12] Management is also working to improve its factory by automating more processes to increase its production capacity (the total amount of goods it can make). [2] The company has provided financial guidance (an estimate of future performance) that suggests it expects revenue (the total money brought in from sales) to be driven by its biomedical products and AI-enabled camera systems. [15]
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 $0.57 vs current price $7.40
Our most-likely fair value is $0.57 a share — about 92.3% below today's price of $7.40, 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 $1.39M 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
9.78x
P/S
10.19x
EV/EBITDA
305.63x
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
—
Payout ratio
0.0%
Last ex-div date
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