Optical Cable Corp. (OCC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

BK Technologies Corp.

Optical Cable Corp.

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Akoustis Technologies, Inc.

DZS, Inc.

UTStarcom Holdings Corp.

Why is Optical Cable Corp. ?

Poor Management Efficiency with a low ROCE of 1.87%

The company has been able to generate a Return on Capital Employed (avg) of 1.87% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 5.73% over the last 5 years

The company has declared positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 1.41 MM
PRE-TAX PROFIT(Q) At USD 0.05 MM has Grown at 117.55%
NET PROFIT(Q) At USD 0.05 MM has Grown at 117.41%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 161.79%, its profits have risen by 66.3%

High Institutional Holdings at 21.54%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.52% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 161.79% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Optical Cable Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Optical Cable Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Optical Cable Corp.

202.09%

1.83

119.21%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.73%

EBIT Growth (5y)

13.93%

EBIT to Interest (avg)

-1.11

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

2.17

Tax Ratio

1.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

21.54%

ROCE (avg)

1.87%

ROE (avg)

1.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.00

EV to EBIT

-73.26

EV to EBITDA

73.26

EV to Capital Employed

2.44

EV to Sales

1.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.41%

ROE (Latest)

-6.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1.41 MM

PRE-TAX PROFIT(Q)

At USD 0.05 MM has Grown at 117.55%

NET PROFIT(Q)

At USD 0.05 MM has Grown at 117.41%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.62 times

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.12% (YoY

Here's what is working for Optical Cable Corp.

Pre-Tax Profit

At USD 0.05 MM has Grown at 117.55%

over average net sales of the previous four periods of USD -0.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.05 MM has Grown at 117.41%

over average net sales of the previous four periods of USD -0.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 1.41 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 2.62 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Optical Cable Corp.

Raw Material Cost

Grown by 5.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales