Optex Systems Holdings, Inc (OPXS) AI Stock Analysis

Optex Systems Holdings, Inc., founded in 1987 and based in Richardson, Texas, manufactures and distributes advanced optical sighting systems and assemblies. Operating as a subsidiary of Sileas Corporation, the company serves the U.S. Department of Defense, foreign military entities, and domestic commercial customers. Its offerings include precision periscopes, electronic M17 day and thermal periscopes, vision blocks, backup sights, unity mirrors, and howitzers such as the M137 telescope and M187 mount. Its Applied Optics Center supplies laser filter units, optical assemblies, day windows, binoculars, and specialty thin film coatings. Optex Systems designs optical solutions deployed on military combat platforms, including the Abrams, Bradley, and Stryker families of vehicles.

Between FY2021 and FY2025, Optex Systems expanded annual revenue from $18.2M to $41.3M, achieving a 5-year revenue CAGR of 9.8% from FY2020 to FY2025. Over this span, gross margin improved from 13.8% in FY2021 to 29.2% in FY2025, while operating margin rose from -2.7% to 17.3%. Net income reached $5.1M in FY2025, up from $2.1M in FY2021, and diluted EPS climbed to $0.74. For the trailing twelve months ended June 30, 2026, revenue stood at $39.8M with a profit margin of 9.8% and EPS of $0.55. For the quarter ended June 30, 2026, revenue declined 12.4% year-over-year and earnings dropped 17.9%.

As of June 30, 2026, Optex Systems held $6.2M in cash and short-term investments against total debt of $1.5M, resulting in net cash of $4.7M. The company reported shareholders' equity of $27.7M and total assets of $32.5M, with a current ratio of 7.09 and a debt-to-equity ratio of 0.05. In FY2025, the company generated $6.9M in operating cash flow and invested $504,000 in capital expenditures, delivering $6.4M in free cash flow. Over the past 5 years, the company's share count decreased by 16.3%.

At a share price of $9.82, Optex Systems has a market capitalization of $68.3M and an enterprise value of $68.0M. The stock trades at a trailing price-to-earnings multiple of 17.9x, which is below the median of its US-listed Industrials peers of 24.8x. Its EV-to-EBITDA ratio of 11.9x also sits below the peer median of 13.9x, while its price-to-sales multiple of 1.7x compares to a peer median of 1.5x. Over the 1-year period, the stock declined 36.8%, underperforming the S&P 500 return of 16.8%, though its 5-year gain of 398.5% exceeds the benchmark return of 83.0%.

Wall Street coverage includes 1 analyst rating, categorized as a Strong Buy, with 0 Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $15.90, representing a 61.9% upside compared to the last closing price of $9.82 on October 16, 2026. For the current fiscal year ending September 30, 2026, analyst estimates project revenue of $42.8M and EPS of $0.78. For the next fiscal year, 1 analyst projects revenue of $47.1M, reflecting 10.1% growth, and EPS of $0.82, representing 5.1% growth.

This page is an AI-written research summary of Optex Systems Holdings, Inc (OPXS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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