NasdaqGM:OFLX

Stock Analysis Report

Executive Summary

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Omega Flex's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

OFLX

3.3%

US Machinery

1.0%

US Market


1 Year Return

43.9%

OFLX

10.0%

US Machinery

8.0%

US Market

Return vs Industry: OFLX exceeded the US Machinery industry which returned 10% over the past year.

Return vs Market: OFLX exceeded the US Market which returned 8% over the past year.


Shareholder returns

OFLXIndustryMarket
7 Day-2.1%3.3%1.0%
30 Day-8.1%2.3%-0.07%
90 Day25.0%-2.0%-1.0%
1 Year45.9%43.9%12.4%10.0%10.4%8.0%
3 Year150.0%138.1%51.4%41.6%46.2%36.7%
5 Year300.8%267.7%58.9%39.6%64.3%46.2%

Price Volatility Vs. Market

How volatile is Omega Flex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Omega Flex undervalued compared to its fair value and its price relative to the market?

47.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OFLX ($91.73) is trading above our estimate of fair value ($28.22)

Significantly Below Fair Value: OFLX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OFLX is poor value based on its PE Ratio (47.3x) compared to the Machinery industry average (20.3x).

PE vs Market: OFLX is poor value based on its PE Ratio (47.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OFLX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OFLX is overvalued based on its PB Ratio (13.4x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

How is Omega Flex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFLX's earnings are forecast to decline over the next 3 years (-7.1% per year).

Earnings vs Market: OFLX's earnings are forecast to decline over the next 3 years (-7.1% per year).

High Growth Earnings: OFLX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if OFLX's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if OFLX's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OFLX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Omega Flex performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OFLX's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: OFLX's earnings growth over the past year (12.3%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: OFLX earnings growth over the past year (12.3%) underperformed the Machinery industry 16.7%.


Return on Equity

High ROE: OFLX's Return on Equity (28.3%) is considered high.


Return on Assets

ROA vs Industry: OFLX has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: OFLX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Omega Flex's financial position?


Financial Position Analysis

Short Term Liabilities: OFLX's short term assets ($73.7M) exceeds its short term liabilities ($16.3M)

Long Term Liabilities: OFLX's short term assets (73.7M) exceeds its long term liabilities (2.2M)


Debt to Equity History and Analysis

Debt Level: OFLX is debt free.

Reducing Debt: OFLX had no debt 5 years ago.

Debt Coverage: OFLX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OFLX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: OFLX has a high level of physical assets or inventory.

Debt Coverage by Assets: OFLX's debt is covered by short term assets (assets are 664118815450536825.275130x debt).


Next Steps

Dividend

What is Omega Flex's current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OFLX's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OFLX's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: OFLX's dividends per share have been stable in the past 10 years.

Growing Dividend: OFLX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.6%), OFLX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Omega Flex's salary, the management and board of directors tenure and is there insider trading?

13.8yrs

Average management tenure


CEO

Kevin Hoben (72yo)

14.8yrs

Tenure

US$2,358,503

Compensation

Mr. Kevin R. Hoben has been the Chief Executive Officer and Chairman of Omega Flex, Inc. since 2005 and December 13, 2018 respectively. Prior to joining Omega Flex Inc, Mr. Hoben served in a number of seni ...


CEO Compensation Analysis

Compensation vs. Market: Kevin's total compensation ($USD2.36M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

13.8yrs

Average Tenure

66yo

Average Age

Experienced Management: OFLX's management team is seasoned and experienced (13.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: OFLX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$12,00205 Apr 19
J. Filler
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares200
Max PriceUS$60.01

Ownership Breakdown


Management Team

  • Timothy Scanlan (63yo)

    General Counsel & Corporate Secretary

    • Tenure: 13.8yrs
    • Compensation: US$462.43k
  • Kevin Hoben (72yo)

    CEO & Chairman

    • Tenure: 14.8yrs
    • Compensation: US$2.36m
  • Mark Albino (66yo)

    President

    • Tenure: 23.8yrs
    • Compensation: US$1.94m
  • Steven Treichel (68yo)

    Senior Vice President of Corporate Development & Facilities Management

    • Tenure: 13.8yrs
    • Compensation: US$691.30k
  • Paul Kane (51yo)

    VP of Finance

    • Tenure: 11.4yrs
    • Compensation: US$372.80k
  • Matt Unger

    Financial Controller

    • Tenure: 0yrs

Board Members

  • Stewart Reed (71yo)

    Independent Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: US$50.00k
  • James Dubin (72yo)

    Independent Director

    • Tenure: 0.8yrs
  • J. Filler (67yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$61.00k
  • Derek Glanvill (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$47.00k
  • Bruce Klink (68yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$54.00k
  • Kevin Hoben (72yo)

    CEO & Chairman

    • Tenure: 14.8yrs
    • Compensation: US$2.36m
  • David Evans (64yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$51.00k
  • Mark Albino (66yo)

    President

    • Tenure: 23.8yrs
    • Compensation: US$1.94m

Company Information

Omega Flex, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Omega Flex, Inc.
  • Ticker: OFLX
  • Exchange: NasdaqGM
  • Founded: 1975
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$925.952m
  • Shares outstanding: 10.09m
  • Website: https://www.omegaflexcorp.com

Number of Employees


Location

  • Omega Flex, Inc.
  • 451 Creamery Way
  • Exton
  • Pennsylvania
  • 19341
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFLXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 2005

Biography

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in the United States and internationally. It offers flexible gas piping for use in residential  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:52
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.