NasdaqGM:OCC

Stock Analysis Report

Executive Summary

Optical Cable Corporation, together with its subsidiaries, manufactures and sells fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Optical Cable's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OCC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

OCC

2.7%

US Communications

-1.1%

US Market


1 Year Return

-48.2%

OCC

-29.2%

US Communications

-13.6%

US Market

Return vs Industry: OCC underperformed the US Communications industry which returned -26.9% over the past year.

Return vs Market: OCC underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

OCCIndustryMarket
7 Day3.7%2.7%-1.1%
30 Day-19.9%-6.4%-17.8%
90 Day-25.8%-19.0%-22.5%
1 Year-48.2%-48.2%-27.7%-29.2%-11.9%-13.6%
3 Year-13.9%-13.9%11.8%5.3%12.1%4.9%
5 Year-40.2%-41.2%39.0%24.0%30.5%16.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Optical Cable undervalued compared to its fair value and its price relative to the market?

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OCC ($2.5) is trading above our estimate of fair value ($0.28)

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


Price To Earnings Ratio

PE vs Industry: OCC is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: OCC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCC is good value based on its PB Ratio (1x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

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

12.0%

Forecasted Tech 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 Optical Cable 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.


Next Steps

Past Performance

How has Optical Cable performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCC is currently unprofitable.

Growing Profit Margin: OCC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OCC is unprofitable, and losses have increased over the past 5 years at a rate of -13% per year.

Accelerating Growth: Unable to compare OCC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OCC is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-13.2%).


Return on Equity

High ROE: OCC has a negative Return on Equity (-26.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is Optical Cable's financial position?


Financial Position Analysis

Short Term Liabilities: OCC's short term assets ($25.1M) exceed its short term liabilities ($11.9M).

Long Term Liabilities: OCC's short term assets ($25.1M) exceed its long term liabilities ($6.1M).


Debt to Equity History and Analysis

Debt Level: OCC's debt to equity ratio (60.2%) is considered high.

Reducing Debt: OCC's debt to equity ratio has increased from 35.2% to 60.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OCC's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable OCC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OCC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.8% per year.


Next Steps

Dividend

What is Optical Cable's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OCC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OCC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OCC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OCC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

16.6yrs

Average management tenure


CEO

Neil Wilkin (55yo)

16.58s

Tenure

US$511,981

Compensation

Mr. Neil D. Wilkin, Jr. has been the Chairman and Chief Executive Officer of Optical Cable Corp. since September 26, 2003 and has been its President since April 11, 2002. Mr. Wilkin serves as the Chairman  ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD511.98K) is about average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Neil Wilkin
Chairman16.58yrsUS$511.98k12.6% $2.3m
Tracy Smith
Senior VP16.58yrsUS$307.41k3.95% $710.4k
Phil Peters
Vice President of Human Resources10.92yrsno datano data

16.6yrs

Average Tenure

Experienced Management: OCC's management team is seasoned and experienced (16.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Neil Wilkin
Chairman16.58yrsUS$511.98k12.6% $2.3m
John Williamson
Independent Director15.75yrsUS$64.98k1.96% $352.8k
Craig Weber
Independent Director18.17yrsUS$63.73k2.38% $427.8k
Randall Frazier
Independent Director24yrsUS$60.48k0.78% $141.0k
John Holland
Independent Director24yrsUS$55.23k1.4% $252.5k
John Nygren
Independent Director4.25yrsUS$61.98k0.60% $108.6k

17.4yrs

Average Tenure

66.5yo

Average Age

Experienced Board: OCC's board of directors are seasoned and experienced ( 17.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

Optical Cable Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Optical Cable Corporation
  • Ticker: OCC
  • Exchange: NasdaqGM
  • Founded: 1983
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$17.974m
  • Shares outstanding: 7.46m
  • Website: https://www.occfiber.com

Number of Employees


Location

  • Optical Cable Corporation
  • 5290 Concourse Drive
  • Roanoke
  • Virginia
  • 24019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OCCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 1996
OCCDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1996

Biography

Optical Cable Corporation, together with its subsidiaries, manufactures and sells fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company provides fiber optic cables for high bandwidth transmission of data, video, and voice communications; and copper datacom cables, including unshielded and shielded twisted pair constructions. It also offers fiber optic connectivity products, including fiber optic wall mounts, cabinet mount and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories. In addition, the company provides copper connectivity products comprising category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for equipment rooms, telecommunications closets, data centers, and workstation applications. Further, it offers network, data storage, and telecommunications management systems, such as data cabinets, wall mount enclosures, horizontal and vertical cable management systems, and open frame relay racks for enterprise and residential use; and datacom wiring products, such as various enclosures, modules, and modular outlets for single dwelling and multiple dwelling residential uses. Additionally, the company provides specialty fiber optic connectors and connectivity components, copper datacom connectors, and related systems and solutions for military, other harsh environment, and special applications. It sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was founded in 1983 and is headquartered in Roanoke, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 11:43
End of Day Share Price2020/04/01 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


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.