📊 OCC Key Takeaways
Is Optical Cable Corp. (OCC) a Good Investment?
Optical Cable Corp exhibits fundamental financial distress despite 9.5% revenue growth. The company is burning cash operationally (-$1.4M) with critically depleted reserves ($145.6K) and razor-thin margins (1.7% net), indicating the revenue growth is not translating to sustainable profitability or cash generation.
OCC shows modest top-line growth and materially improving losses, hovering near break-even. The balance sheet is conservative with low leverage and positive free cash flow, but liquidity is tight with very low cash and inventory-heavy working capital. Sustained operating profitability and improved coverage are needed before a more constructive view.
Optical Cable Corp. Key Strengths (OCC)
- Top-line revenue growth of 9.5% YoY demonstrates market demand
- Gross margin of 33.5% shows reasonable production efficiency for manufacturing sector
- Conservative debt-to-equity ratio of 0.17x limits financial leverage risk
- Low leverage (D/E 0.14x) and adequate current ratio (1.83x)
- Positive free cash flow with modest capex; improving YoY profitability
- Solid gross margin (~33%) for a manufacturer; revenue up 9.5% YoY
OCC Stock Risks: Optical Cable Corp. Investment Risks
- Negative operating cash flow of -$1.4M contradicts positive net income, signaling earnings quality concerns
- Critically low cash position ($145.6K) provides minimal financial flexibility for operations or emergencies
- Negative free cash flow of -$1.6M means company is burning cash despite growth; unsustainable trajectory
- Razor-thin margins (2.8% operating, 1.7% net) leave zero tolerance for operational disruptions
- Quick ratio of 0.74x indicates potential near-term liquidity stress
- Negative EPS (-$0.18) despite improvement suggests company not yet profitable on per-share basis
- Negative operating income and interest coverage (-0.4x)
- Weak quick ratio (0.54x) and minimal cash balance
- Inventory dependence and cyclical end-market/pricing pressures
Key Metrics to Watch
- Operating cash flow trend (must turn positive)
- Cash reserves and burn rate at current expense levels
- Operating margin expansion (critical threshold above 5%)
- Path to positive EPS and when that materializes
- Working capital management and receivables collection efficiency
- Operating margin and interest coverage turning positive
- Quick ratio, inventory turns, and cash balance
Optical Cable Corp. (OCC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.08x current ratio provides a solid financial cushion.
OCC Profit Margin, ROE & Profitability Analysis
OCC vs Market Sector: How Optical Cable Corp. Compares
How Optical Cable Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Optical Cable Corp. Stock Overvalued? OCC Valuation Analysis 2026
Based on fundamental analysis, Optical Cable Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Optical Cable Corp. Balance Sheet: OCC Debt, Cash & Liquidity
OCC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Optical Cable Corp.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $-0.18 indicates the company is currently unprofitable.
OCC Revenue Growth, EPS Growth & YoY Performance
OCC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $17.5M | -$397.5K | N/A |
| Q1 2026 | $15.7M | -$397.5K | N/A |
| Q3 2025 | $16.2M | $301.9K | N/A |
| Q2 2025 | $16.1M | -$697.9K | N/A |
| Q1 2025 | $14.9M | -$1.1M | N/A |
| Q3 2024 | $16.2M | $100.8K | N/A |
| Q2 2024 | $16.1M | $810.0K | N/A |
| Q1 2024 | $14.9M | $810.0K | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Optical Cable Corp. Dividends, Buybacks & Capital Allocation
OCC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Optical Cable Corp. (CIK: 0001000230)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OCC
What is the AI rating for OCC?
Optical Cable Corp. (OCC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OCC's key strengths?
Claude: Top-line revenue growth of 9.5% YoY demonstrates market demand. Gross margin of 33.5% shows reasonable production efficiency for manufacturing sector. ChatGPT: Low leverage (D/E 0.14x) and adequate current ratio (1.83x). Positive free cash flow with modest capex; improving YoY profitability.
What are the risks of investing in OCC?
Claude: Negative operating cash flow of -$1.4M contradicts positive net income, signaling earnings quality concerns. Critically low cash position ($145.6K) provides minimal financial flexibility for operations or emergencies. ChatGPT: Negative operating income and interest coverage (-0.4x). Weak quick ratio (0.54x) and minimal cash balance.
What is OCC's revenue and growth?
Optical Cable Corp. reported revenue of $38.6M.
Does OCC pay dividends?
Optical Cable Corp. pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find OCC SEC filings?
Official SEC filings for Optical Cable Corp. (CIK: 0001000230) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OCC's EPS?
Optical Cable Corp. has a diluted EPS of $-0.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OCC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Optical Cable Corp. has a C grade with 71% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OCC stock overvalued or undervalued?
Valuation metrics for OCC: ROE of 4.3% (sector avg: 15%), net margin of 1.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is OCC's AI grade for 2026?
Our dual AI analysis gives Optical Cable Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OCC's free cash flow?
Optical Cable Corp.'s operating cash flow is $-1.4M, with capital expenditures of $210.5K. FCF margin is -4.1%.
How does OCC compare to other Market stocks?
Vs Default sector averages: Net margin 1.7% (avg: 12%), ROE 4.3% (avg: 15%), current ratio 2.08 (avg: 1.8).