Optical Cable manufactures fiber optic and copper cabling solutions for enterprise and specialty markets, employing 327 people in Roanoke, Virginia. Their diverse product range includes connectors, assemblies, and management accessories.
Based on our analysis, Optical Cable (OCC) is currently rated as undervalued at 5 out of 5 stars by Cashu. Several key financial ratios indicate that the company presents a strong investment opportunity relative to its sector.
The Price-to-Book (PB) ratio for Optical Cable stands at 0.97, significantly lower than the sector average of 3.48. A PB ratio below 1 suggests that the company's stock is trading for less than its book value, indicating potential undervaluation.
In terms of profitability, Optical Cable's net profit margin is -6.31, compared to a sector average of -15.27. This indicates that Optical Cable is less negative in terms of profit margins, suggesting better operational efficiency and a potential for improvement in profitability as market conditions stabilize.
Additionally, the company's Return on Equity (ROE) is -20.20, which, while negative, is an improvement over the sector's -23.19. This metric indicates how effectively the company is using shareholders' equity to generate losses, and a less severe loss compared to the sector suggests that Optical Cable may recover more swiftly.
Finally, the Return on Assets (ROA) for Optical Cable is -10.43, again outperforming the sector's -12.89. This ratio reveals how efficiently the company is using its assets to generate returns, and a smaller negative value indicates a relatively better performance.
The combination of these financial indicators points to Optical Cable being undervalued in the current market landscape.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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