Optical Cable Corporation

NasdaqGM:OCC Stock Report

Market Cap: US$19.1m

Optical Cable Valuation

Is OCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of OCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OCC ($2.33) is trading below our estimate of fair value ($4.21)

Significantly Below Fair Value: OCC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for OCC?

Key metric: As OCC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for OCC. This is calculated by dividing OCC's market cap by their current revenue.
What is OCC's PS Ratio?
PS Ratio0.3x
SalesUS$64.52m
Market CapUS$19.11m

Price to Sales Ratio vs Peers

How does OCC's PS Ratio compare to its peers?

The above table shows the PS ratio for OCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
BOSC B.O.S. Better Online Solutions
0.5xn/aUS$19.5m
WSTL Westell Technologies
0.6xn/aUS$18.2m
ATGN Altigen Communications
1.3xn/aUS$17.3m
MOB Mobilicom
3.4xn/aUS$11.8m
OCC Optical Cable
0.3xn/aUS$19.1m

Price-To-Sales vs Peers: OCC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.4x).


Price to Sales Ratio vs Industry

How does OCC's PS Ratio compare vs other companies in the US Communications Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
COMM CommScope Holding Company
0.2x1.0%US$1.03b
CMTL Comtech Telecommunications
0.2x4.3%US$97.86m
TESS TESSCO Technologies
0.2xn/aUS$83.30m
CMBM Cambium Networks
0.2x12.6%US$35.59m
OCC 0.3xIndustry Avg. 1.1xNo. of Companies11PS012345+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: OCC is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Communications industry average (1.1x).


Price to Sales Ratio vs Fair Ratio

What is OCC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OCC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate OCC's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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