Optex Systems Holdings Inc (OPXS) stock analysis

P/E below its 5-year median

Optex Systems's P/E of 15.5 is below its own 5-year median of 16.6.

P/E below the industry

Optex Systems's P/E of 15.5 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 35.0.

EV/EBITDA below its 5-year median

Optex Systems's EV/EBITDA of 9.3 is below its 5-year median of 11.0.

P/B below the industry

Optex Systems's price-to-book of 2.14 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.13.

Trading below fair value

The share price of $8.52 is below our fair value estimate of $12.68.

Margin of safety over 20%

The price is 32.8% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 22.7% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 66.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -24.3% over the last twelve months, against a 5-year average of 23.0% a year.

Growing slower than the industry

Revenue grew 0.8% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.3%.

Guidance unchanged

The latest outlook (full-year full-year revenue guidance, Aug 11, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 30.7% over the last twelve months, against 28.0% a year earlier.

Return on equity over 15%

Return on equity was 15.3% over the last twelve months and averaged 17.3% over five years.

Return on capital over 10%

Return on invested capital was 22.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Optex Systems's return on equity of 15.3% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 23.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.8% over the last twelve months, against a 5-year average of 10.0%.

Net margin above the industry

Optex Systems's net margin of 9.8% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -2.4%.

No debt

Optex Systems has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 7.09 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 10.39; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Optex Systems has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.