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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BK Technologies Corp.

Franklin Wireless Corp.

Optical Cable Corp.

Ondas Holdings, Inc.

Asia Pacific Wire & Cable Corp. Ltd.

Inseego Corp.

Frequency Electronics, Inc.

Sonim Technologies, Inc.

DZS, Inc.

Akoustis Technologies, 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 1.72% over the last 5 years

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

PRE-TAX PROFIT(Q) At USD 0.31 MM has Grown at 140.29%
NET PROFIT(Q) At USD 0.3 MM has Grown at 139.27%
RAW MATERIAL COST(Y) Fallen by -32.84% (YoY)

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 243.48%, its profits have risen by 34.7%

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.4% over the previous quarter and collectively hold 17.89% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

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.

300.0%

1.49

125.35%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.72%

EBIT Growth (5y)

10.49%

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)

2.10

Tax Ratio

1.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

17.89%

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

1.22

EV to EBIT

-16.55

EV to EBITDA

-29.80

EV to Capital Employed

1.15

EV to Sales

0.46

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.95%

ROE (Latest)

-16.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

14What is working for the Company

PRE-TAX PROFIT(Q)

At USD 0.31 MM has Grown at 140.29%

NET PROFIT(Q)

At USD 0.3 MM has Grown at 139.27%

RAW MATERIAL COST(Y)

Fallen by -32.84% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.63 times

NET SALES(Q)

Highest at USD 19.92 MM

-2What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -0.91 MM

Here's what is working for Optical Cable Corp.

Pre-Tax Profit

At USD 0.31 MM has Grown at 140.29%

over average net sales of the previous four periods of USD -0.76 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.3 MM has Grown at 139.27%

over average net sales of the previous four periods of USD -0.77 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 19.92 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -32.84% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD -0.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)