NasdaqGM:OFLX

Stock Analysis Report

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Market Cap

US$1.5b

Last Updated

2021/06/20 14:39 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Outstanding track record with flawless balance sheet.


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

Stable Share Price: OFLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: OFLX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.8%

OFLX

-5.3%

US Machinery

-1.9%

US Market


1 Year Return

34.9%

OFLX

48.4%

US Machinery

38.2%

US Market

Return vs Industry: OFLX underperformed the US Machinery industry which returned 48.4% over the past year.

Return vs Market: OFLX underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

OFLXIndustryMarket
7 Day2.8%-5.3%-1.9%
30 Day-4.0%-5.6%1.1%
90 Day-3.4%-4.7%4.3%
1 Year36.0%34.9%51.5%48.4%40.4%38.2%
3 Year113.0%100.4%58.6%49.2%57.5%47.8%
5 Year306.0%269.9%147.4%122.5%127.2%101.7%

Long-Term 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?

66.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OFLX ($144.25) is trading above our estimate of fair value ($39.97)

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 (66.7x) compared to the US Machinery industry average (32.5x).

PE vs Market: OFLX is poor value based on its PE Ratio (66.7x) compared to the US market (18.9x).


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 (29.4x) compared to the US Machinery industry average (3x).


Future Growth

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

14.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Omega Flex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Omega Flex performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFLX has high quality earnings.

Growing Profit Margin: OFLX's current net profit margins (19.6%) are higher than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: OFLX's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: OFLX's earnings growth over the past year (26.6%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: OFLX earnings growth over the past year (26.6%) exceeded the Machinery industry -6.4%.


Return on Equity

High ROE: OFLX's Return on Equity (43.9%) is considered outstanding.


Financial Health

How is Omega Flex's financial position?


Financial Position Analysis

Short Term Liabilities: OFLX's short term assets ($55.9M) exceed its short term liabilities ($17.6M).

Long Term Liabilities: OFLX's short term assets ($55.9M) exceed its long term liabilities ($2.7M).


Debt to Equity History and Analysis

Debt Level: OFLX is debt free.

Reducing Debt: OFLX has not had any debt for past 5 years.

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


Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OFLX's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: OFLX's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OFLX has been paying a dividend for less than 10 years.

Growing Dividend: OFLX's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.8%), 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

How experienced are the management team and are they aligned to shareholders interests?

14.4yrs

Average management tenure


CEO

Kevin Hoben (73 yo)

16.42yrs

Tenure

US$2,425,216

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 ($USD2.43M) is below average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: OFLX's management team is seasoned and experienced (14.4 years average tenure).


Board Members

Experienced Board: OFLX's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OFLX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.456b
  • Shares outstanding: 10.09m
  • Website: https://www.omegaflexcorp.com

Number of Employees


Location

  • Omega Flex, Inc.
  • 451 Creamery Way
  • Exton
  • Pennsylvania
  • 19341-2509
  • United States

Listings


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 Analysis2021/06/20 14:39
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.