Optex Systems Holdings Inc. Common Stock (OPXS)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for small, understandable businesses with durable advantages and honest numbers. Optex fits the first part: 140 employees making optical sighting systems and periscopes for the U.S. Department of Defense, foreign military, and commercial markets. Defense qualification can create switching costs, but this is a tiny supplier in a lumpy procurement world, so the moat is narrow at best. The financials are mixed. At the close on 2026-10-13, the price was $9.92 and market cap $69.0M. FairStock’s P/E is 18.04, P/B 2.48, and its Graham Number is $7.03, implying a negative margin of safety of 41.11%. Free cash flow is only $1.5M, a 2.1% FCF yield. The balance sheet is a strength: debt-to-equity is 0.05 and FairStock Altman Z-score is 10.30. Returns are decent, with FairStock ROE 15.28% and ROCE 10.69%. But Piotroski is 4/9. Growth has been good over time, then turned down recently. In fiscal Q3 2026, the quarter ended 2026-06-28, revenue was $9.7M, net income $1.3M, and diluted EPS $0.18. In fiscal Q3 2025, the quarter ended 2025-06-29, revenue was $11.1M, net income $1.5M, and diluted EPS $0.22. For FY2025, revenue was $41.3M, net income $5.1M, and diluted EPS $0.74. FairStock still labels it a Lynch STALWART, citing 23.0% annual profit growth and 9.8% revenue growth over five years. My conclusion: a respectable niche operator with low debt, but not a bargain at this price and not currently compounding.

In plain English: Optex Systems makes optical sighting systems and periscopes, mainly for the U.S. military and related customers. The business is profitable and has very little debt, but its latest reported quarter showed lower sales and profit than a year earlier. At $9.92, the price looks full compared with the company's earnings and asset value, so it does not appear cheap based on the numbers given.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-28) · fiscal Q2 2026 10-Q (period ended 2026-03-29) · fiscal Q1 2026 10-Q (period ended 2025-12-28) · fiscal Q3 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-09-28) · FY2024 10-K (period ended 2024-09-29) · FY2023 10-K (period ended 2023-10-01)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer