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olivLaw · US equity research

Optical Cable Corporation OCC

Drawing & Insulating of Nonferrous Wire · SIC 3357 · Vertical: Primary metal industries (SIC 335x)

11.21USD−6.39% · 1 dayClose 04 Nov 2026

Optical Cable Corporation, headquartered in Roanoke, Virginia, designs and manufactures fiber optic and copper cabling and connectivity products for enterprise, data center and harsh environment and specialty markets, including military. In the third quarter of fiscal 2026 net sales rose 22.0% to 24.3 million USD, and the sales order backlog reached 13.5 million USD, making the recent demand trend worth following.

At the close of 04 Nov 2026, Optical Cable Corporation (OCC) stock was 11.21 USD (−6.39% on the day), with market capitalisation 99.1 m USD, P/E 38.6 on diluted EPS of 0.29 USD over the last 12 months, dividend yield 0.00%, beta 1.60, 52-week range 4.16–26.92 USD. Latest reported quarter (Q3 2026): revenue of 24.3 m USD (+22.0% YoY), net income of 1.9 m USD (+515.5% YoY), diluted EPS 0.21 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
99.1 m USD
shares as of 02 Sept 2026
P/E (TTM)
38.6
Diluted EPS TTM 0.29 · TTM to 31 Jul 2026
E/P (TTM)
2.59%
TTM to 31 Jul 2026
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
1.60
Volatility (1y) 124%
52-week range
4.1626.92

Price history

Loading chart…

Technical reading

RSI (14)
33.8
weak (30–45)
Bollinger (20, 2)
10.18 – 16.06
in the lower half of the band · %B 0.17 · band width 44.8%
SMA 50 / 200
14.00 / 12.32
mixed trend
MACD (12, 26, 9)
-0.89 / -0.75
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−34.0%−1.1%−33.0 pp—
3 months−28.3%−0.5%−27.8 pp—
6 months+9.6%+4.4%+5.2 pp—
Year to date+151.8%+12.3%+139.5 pp—
1 year+43.1%+13.5%+29.6 pp+2.4%
3 years+326.0%+76.4%+249.6 pp+73.8%
5 years+190.3%+63.7%+126.6 pp—
Max drawdown (1y)
−58.4%
10 Jun 2026 → 04 Nov 2026
Max drawdown (5y)
−68.5%
17 Dec 2021 → 03 Dec 2024
Compound annual growth (5y)
+23.8%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 31 Jul 2026

Revenue
24.3 m USD
+22.0% YoY
Net income
1.9 m USD
+515.5% YoY
Diluted EPS
0.21
+425.0% YoY
net / operating
7.6% / 8.7%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue19.5 m15.7 m17.5 m19.9 m19.8 m16.4 m22.2 m24.3 m
Cost of revenue13.0 m11.1 m12.2 m13.6 m13.5 m11.1 m14.6 m15.2 m
Gross profit6.5 m4.6 m5.3 m6.3 m6.3 m5.4 m7.6 m9.1 m
SG&A5.9 m5.5 m5.7 m5.7 m6.0 m5.6 m6.3 m7.0 m
Operating income662.1 k-852.4 k-429.2 k562.5 k268.7 k-208.3 k1.3 m2.1 m
Depreciation & amortisation221.5 k212.0 k212.2 k ≈183.9 k ≈196.5 k196.6 k192.1 k ≈196.1 k ≈
Interest expense285.9 k263.7 k248.8 k260.0 k232.7 k210.6 k234.4 k247.1 k
Pre-tax income373.2 k-1.1 m-683.1 k306.4 k47.6 k-419.0 k1.1 m1.9 m
Income tax-28712.1 k14.8 k4.5 k-1.0 k-21.5 k4.4 k8.6 k
Net income373.5 k-1.1 m-697.9 k301.9 k48.6 k-397.5 k1.1 m1.9 m
Diluted EPS0.05-0.14-0.090.040.01-0.050.120.21
Operating cash flow-1.5 m2.7 m141.4 k ≈-2.2 m ≈797.3 k1.2 m-2.5 m ≈1.5 m ≈
Capex56.6 k71.9 k68.0 k ≈77.2 k ≈78.5 k138.0 k72.6 k ≈214.1 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 78 percentile of its own 9-quarter history (min 4.4, median 8.2, max 85.8; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue87.8 m71.3 m55.3 m59.1 m69.1 m72.2 m66.7 m73.0 m
Revenue YoY+37.0%−18.8%−22.5%+7.0%+16.8%+4.5%−7.6%+9.5%
Net income1.1 m-5.7 m-6.1 m6.6 m-347.1 k2.1 m-4.2 m-1.5 m
Net income YoYunavailable−630.5%unavailableunavailable−105.3%unavailable−303.7%unavailable
Diluted EPSunavailableunavailable-0.830.87-0.050.26-0.54-0.18
Diluted EPS YoYunavailableunavailableunavailableunavailable−105.7%unavailable−307.7%unavailable
net %1.2%-7.9%-11.1%11.2%-0.5%2.9%-6.3%-2.0%
Free cash flow2.5 m-771.4 k-3.7 m2.0 m-1.9 m-916.5 k-1.2 m1.1 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Oct 2025

Cash
237.5 k USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
16.5 m USD
Total assets
40.1 m USD
Debt / equity
unavailable
Current ratio
1.82x
ROE
-7.8%
ROA
-3.6%
FCF margin
1.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
72.2 m
2024
66.7 m
2025
73.0 m

SEC (XBRL)· 18 Dec 2025verified

Cost of revenue
2023
49.9 m
2024
48.5 m
2025
50.4 m

SEC (XBRL)· 18 Dec 2025verified

Gross profit
2023
22.3 m
2024
18.2 m
2025
22.6 m

SEC (XBRL)· 18 Dec 2025verified

SG&A
2023
21.2 m
2024
21.5 m
2025
23.0 m

SEC (XBRL)· 18 Dec 2025verified

Operating income
2023
993.1 k
2024
-3.4 m
2025
-450.3 k

SEC (XBRL)· 18 Dec 2025verified

Depreciation & amortisation
2023
946.5 k
2024
865.9 k
2025
804.5 k

SEC (XBRL)· 18 Dec 2025verified

EBITDA
2023
1.9 m ≈
2024
-2.5 m ≈
2025
354.2 k ≈

SEC (XBRL)· 18 Dec 2025derived

Interest expense
2023
1.2 m
2024
1.2 m
2025
1.0 m

SEC (XBRL)· 18 Dec 2025verified

Pre-tax income
2023
2.2 m
2024
-4.2 m
2025
-1.4 m

SEC (XBRL)· 18 Dec 2025verified

Income tax
2023
145.7 k
2024
20.7 k
2025
30.3 k

SEC (XBRL)· 18 Dec 2025verified

Net income
2023
2.1 m
2024
-4.2 m
2025
-1.5 m

SEC (XBRL)· 18 Dec 2025verified

Diluted EPS
2023
0.26
2024
-0.54
2025
-0.18

SEC (XBRL)· 18 Dec 2025verified

Balance sheet · USD

Cash
2023
1.5 m
2024
244.2 k
2025
237.5 k

SEC (XBRL)· 18 Dec 2025verified

Receivables
2023
8.7 m
2024
10.9 m
2025
10.3 m

SEC (XBRL)· 18 Dec 2025verified

Inventories
2023
23.8 m
2024
18.7 m
2025
19.8 m

SEC (XBRL)· 18 Dec 2025verified

Current assets
2023
35.0 m
2024
30.6 m
2025
30.8 m

SEC (XBRL)· 18 Dec 2025verified

Property, plant & equipment, net
2023
7.1 m
2024
6.9 m
2025
6.6 m

SEC (XBRL)· 18 Dec 2025verified

Intangibles (excl. goodwill)
2023
566.2 k
2024
514.0 k
2025
481.2 k

SEC (XBRL)· 18 Dec 2025verified

Total assets
2023
43.9 m
2024
40.4 m
2025
40.1 m

SEC (XBRL)· 18 Dec 2025verified

Accounts payable
2023
5.8 m
2024
5.2 m
2025
6.8 m

SEC (XBRL)· 18 Dec 2025verified

Short-term debt
2023
52.6 k
2024
57.2 k
2025
—

SEC (XBRL)· 10 Mar 2025verified

Long-term debt
2023
2.6 m
2024
2.6 m
2025
—

SEC (XBRL)· 05 Jun 2025verified

Current liabilities
2023
16.1 m
2024
15.1 m
2025
16.9 m

SEC (XBRL)· 18 Dec 2025verified

Total liabilities
2023
19.2 m
2024
19.5 m
2025
18.5 m

SEC (XBRL)· 18 Dec 2025verified

Equity
2023
24.7 m †
2024
20.8 m †
2025
16.5 m †

SEC (XBRL)· 18 Dec 2025verified

Cash flow · USD

Operating cash flow
2023
-395.7 k
2024
-857.0 k
2025
1.4 m

SEC (XBRL)· 18 Dec 2025verified

Capex
2023
520.8 k
2024
369.6 k
2025
295.5 k

SEC (XBRL)· 18 Dec 2025verified

Free cash flow
2023
-916.5 k ≈
2024
-1.2 m ≈
2025
1.1 m ≈

SEC (XBRL)· 18 Dec 2025derived

Investing cash flow
2023
1.4 m
2024
-67.1 k
2025
-317.2 k

SEC (XBRL)· 18 Dec 2025verified

Financing cash flow
2023
219.8 k
2024
-300.3 k
2025
-1.1 m

SEC (XBRL)· 18 Dec 2025verified

Share repurchases
2023
—
2024
—
2025
—

SEC (XBRL)· 20 Dec 2021verified

Computed indicators

Growth

Revenue growth (YoY)
9.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
1.9%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
5.7%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
34.3%
computed by olivLawTTM to 31 Jul 2026
EBITDA margin
5.1%
computed by olivLawTTM to 31 Jul 2026
EBIT margin
4.2%
computed by olivLawTTM to 31 Jul 2026
Net margin
3.1%
computed by olivLawTTM to 31 Jul 2026
FCF margin
0.5%
computed by olivLawTTM to 31 Jul 2026

Returns

ROE
15.6%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROA
6.0%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
ROIC
unavailable
input data missing
ROCE
12.2%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
3.8x
computed by olivLawTTM to 31 Jul 2026

Liquidity

Current ratio
2.2x
computed by olivLawbalance sheet at 31 Jul 2026
Quick ratio
0.8x
computed by olivLawbalance sheet at 31 Jul 2026
Cash ratio
0.0x
computed by olivLawbalance sheet at 31 Jul 2026

Cash

Operating cash flow
945.0 k USD
computed by olivLawTTM to 31 Jul 2026
Capital expenditure
503.1 k USD
computed by olivLawTTM to 31 Jul 2026
Free cash flow
441.9 k USD
computed by olivLawTTM to 31 Jul 2026
FCF conversion
17.2%
computed by olivLawTTM to 31 Jul 2026
Cash conversion
22.2%
computed by olivLawTTM to 31 Jul 2026

Efficiency

Days sales outstanding
51 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Days inventory outstanding
140 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Days payables outstanding
45 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Cash conversion cycle
145 days
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026

Market and valuation

Market capitalisation
99.1 m USD
computed by olivLawbalance sheet at 31 Jul 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
38.6x
computed by olivLawTTM to 31 Jul 2026
P/E (TTM)
38.6x
computed by olivLawTTM to 31 Jul 2026
Earnings yield
2.6%
computed by olivLawTTM to 31 Jul 2026
P/B
6.7x
computed by olivLawbalance sheet at 31 Jul 2026
P/S
1.2x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
224.2x
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
FCF yield
0.4%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Dividend yield
0.0%
computed by olivLawTTM to 31 Jul 2026
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
5.46
computed by olivLawbalance sheet at 31 Jul 2026

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 50.0% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

11.21 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 99.1 m USD

Key indicators

Market capitalisation
99.1 m USD
computed by olivLawbalance sheet at 31 Jul 2026
P/E (TTM)
38.6x
computed by olivLawTTM to 31 Jul 2026
P/B
6.7x
computed by olivLawbalance sheet at 31 Jul 2026
EV/EBITDA
unavailable
input data missing
ROE
15.6%
computed by olivLawTTM to 31 Jul 2026 · balance sheet at 31 Jul 2026
Net margin
3.1%
computed by olivLawTTM to 31 Jul 2026
Revenue growth (YoY)
9.5%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawTTM to 31 Jul 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Jul 2026
Latest balance sheet date: 31 Jul 2026
Share count (cover of the latest filing), as of: 02 Sept 2026
Source: SEC (XBRL)published 09 Sept 2026
verified 2527derived 162

Score by group

50% · Insufficient data

Estimated value range

Low
2.41
USD per share
Mid
5.33
USD per share
High
8.17
USD per share
Price: 11.21 USD
The price is above the range
Potential to the central value: -52.5% (value / price − 1)
Margin of safety: -110.3% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.41 – 8.17 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E2.41 – 8.17 (Mid 5.33)
    8 companies used · median multiple 18.4x · quartiles 8.3x – 28.2x
    APWC, BDC, GLW, HWM, KALU, MLI, NX, TG
  • Dividend discount (DDM)unavailable · the base of the ratio is not positive
Multiple comparisons use the SIC vertical: Primary metal industries (SIC 335x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 50.0% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality3.1%29 (vs peers)13%
FCF conversion · Quality17.2%0 (on a fixed band)13%
Revenue CAGR 3Y · Growth1.9%16 (on a fixed band)17%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet3.8x35 (on a fixed band)13%
Current ratio · Balance sheet2.2x100 (on a fixed band)8%
P/E (TTM) · Valuation38.6x25 (vs peers)21%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation0.4%6 (on a fixed band)17%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet61/100 · 2/3 factors with a value
  • Growth· partial16/100 · 1/2 factors with a value
  • Quality14/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation16/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

OPTICAL CABLE CORPORATION (OCC). Latest full fiscal year: 2025; data up to 2026-07-31.

Figures computed from the financial statements: revenue 73.0 m USD in 2025; YoY growth 9.5%; net margin 3.1%; ROE 15.6%.

The estimated value range is 2.41–8.17 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 5.33 USD, the price of 11.21 USD leaves a potential of -52.5% (value / price − 1) and a margin of safety of -110.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.2x

What contradicts it

  • Net margin: 3.1%
  • FCF conversion: 17.2%
  • Revenue CAGR 3Y: 1.9%
  • P/E (TTM): 38.6x
  • FCF yield: 0.4%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Primary metal industries (SIC 335x) · same industry group (3-digit SIC) · compared with 8 companies

Multiples and returns vs the median

P/E
38.6x
vertical median 18.4x
above median (+110.3%)
EV/EBITDA
—
vertical median 7.5x
P/S
1.2x
vertical median 1.3x
below median (−8.8%)
P/B
6.7x
vertical median 2.4x
above median (+179.7%)
ROE
15.6%
vertical median 16.4%
below median (−5.2%)
Net margin
3.1%
vertical median 5.6%
below median (−44.9%)
EBIT margin
4.2%
vertical median 9.0%
below median (−53.3%)
Revenue YoY
9.5%
vertical median 11.3%
below median (−15.5%)
Net debt/EBITDA
—
vertical median 0.6x
Dividend yield
0.0%
vertical median 1.4%
below median (−100.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
GLWCorning Inc102.3 bn48.117.1%12.1%+19.1%+41% / +317%
HWMHowmet Aerospace Inc.84.9 bn41.837.7%21.1%+11.1%+4% / +306%
MLIMueller Industries, Inc12.0 bn13.926.2%17.3%+10.9%+0% / +166%
BDCBelden Inc.4.1 bn23.613.4%5.6%+10.3%−7% / +58%
KALUKaiser Aluminum Corporation1.8 bn8.624.5%4.8%+11.5%+15% / +89%
NXQuanex Building Products Corporation1.0 bn22.86.2%2.4%+43.8%+74% / −27%
TGTredegar Corporation254.4 m7.615.8%—+16.1%−7% / +55%
OCCOptical Cable Corporation99.1 m38.615.6%3.1%+9.5%+43% / +326%
APWCAsia Pacific Wire & Cable Corporation Limited23.1 m6.62.2%0.7%+11.0%−34% / −17%

1- and 3-year price returns: for OCC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
6.45
Total return -42% · Per year -42%
11.41
Total return 2% · Per year 2%
17.21
Total return 54% · Per year 54%
3 years
5.93
Total return -47% · Per year -19%
11.85
Total return 6% · Per year 2%
19.66
Total return 75% · Per year 21%
5 years
5.46
Total return -51% · Per year -13%
12.29
Total return 10% · Per year 2%
22.46
Total return 100% · Per year 15%
What moves the 3-year price the most
  • Exit P/E± 2.96
  • Net margin± 2.07
  • Annual revenue growth± 1.75
  • Annual dilution± 0.17

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Optical Cable Corporation, headquartered in Roanoke, Virginia, designs and manufactures fiber optic and copper cabling and connectivity products for enterprise, data center and harsh environment and specialty markets, including military. In the third quarter of fiscal 2026 net sales rose 22.0% to 24.3 million USD 13, and the sales order backlog reached 13.5 million USD 3, making the recent demand trend worth following.

SWOT

Strengths

  • The company offers a broad range of fiber and copper products and has a reputation for innovation, with 12 patents granted in the past five years 1.
  • Its facilities are ISO registered, and its Dallas facility is MIL-STD certified, supporting its position in military and harsh environment markets 13.
  • Growth in sales and gross margin in the third quarter shows the company's ability to benefit from manufacturing operating leverage 3.

Weaknesses

  • By its own description the company has fewer financial, research and marketing resources than many of its larger competitors 1.
  • SG&A expenses have grown faster than some other parts of the business, which could reduce profitability if the trend continues 3.
  • The filings note dependence on a limited number of suppliers for certain components and on key customers, including distributors 2.

Opportunities

  • If the Lightera collaboration widens the offering for data centers, it could open new customer segments 1.
  • Rising sales outside the United States suggest international markets could keep contributing to growth 3.
  • Demand from military and renewable energy sectors could support the harsh environment segment, where the company holds certified products 1.

Threats

  • Larger competitors with considerable resources could reduce prices or the company's market share 1.
  • Import and export tariffs and fluctuating raw material prices could raise costs that may be hard to pass on to customers 2.
  • Concentration of sales among a few customers, particularly in the wireless market, could produce order volatility 2.

Risks

  • Customer concentrationhigh

    Sales depend on a limited number of customers, particularly in the wireless carrier market, and loss of a major customer could affect results 2.

  • Raw material volatilitymedium

    Fluctuations in the prices of optical fiber, copper, gold and plastics could affect margins, especially if costs cannot be passed on to customers 2.

  • Trade tariffsmedium

    Import and export tariffs imposed by the United States and other countries could raise costs and limit access to certain markets 2.

  • Intense competitionmedium

    Larger competitors with substantial financial and research resources could pressure prices and market share 1.

  • Share dilutionlow

    Restricted shares issued to Lightera and possible redemption of redeemable common stock could dilute existing shareholders and affect the capital structure 12.

Investment thesis

What would need to be true (bull case)

  • Rising sales and gross margin in recent quarters suggest the business could benefit from operating leverage on higher volumes 3.
  • A growing sales order backlog suggests better visibility on demand in the coming quarters 3.
  • The strategic collaboration with Lightera could open access to new data center customers 1.

What would break the thesis

  • Fewer resources than large competitors could limit investment in research and production capacity 1.
  • Dependence on a small number of customers and suppliers could produce volatility in sales and costs 2.
  • Rising personnel and shipping costs could reduce profitability if they are not offset by higher sales 3.

What to watch

  • Development of the sales order backlog and quarterly sales in the fourth quarter of fiscal 2026Q4 2026
  • Trend in gross margin as production volumes increaseQ4 2026
  • Effect of the Lightera collaboration on sales of data center products2027
  • Share of non-U.S. customers in total sales and the effect of import tariffsnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Optical Cable Corporation, incorporated in Virginia in 1983, manufactures a broad range of fiber optic and copper data communication cabling and connectivity solutions, primarily for the enterprise market and for harsh environment and specialty markets, as well as the wireless carrier market 1. Products include fiber and copper cabling, hybrid cabling, connectors, patch cords, pre-terminated cable trunks, racks, cabinets and cable management accessories 1. The company operates from facilities in Roanoke, near Asheville and near Dallas, all ISO 9001:2015 registered 13.

In July 2025 the company entered a strategic collaboration agreement with Lightera, part of the Furukawa Electric Company Group, to expand offerings for data center and enterprise customers; Lightera acquired 642,199 redeemable restricted shares, representing 7.24% of outstanding common shares at October 31, 2025 1. The company sold into approximately 50 countries in fiscal year 2025 1.

Segments

Fiber optic cable products

The fiber optic and hybrid cable line, including variants for military, industrial, mining and wireless carrier applications, is the company's fiber optic cable offering 1.

Enterprise connectivity (fiber and copper)

This line covers connectors, patch panels, jacks, patch cords, enclosures and racks for enterprise networks, data centers and residential installations, where the company says it pioneered copper connectivity technology 1.

Harsh environment and specialty connectivity

Through its subsidiary Applied Optical Systems, the company makes tactical fiber optic connectors conforming to U.S. Department of Defense standards and deployable reels and assemblies for military, petrochemical and renewable energy applications 1.

Market context

The company operates in fiber and copper data communications cabling and connectivity, a sector the source describes as highly competitive and whose demand depends on enterprise, data center and government spending 12. The third-quarter sales increase points to sustained demand in the enterprise, data center and specialty segments 3.

The filings also flag concentration risk: sales to a limited number of customers, particularly in the wireless carrier market, can fluctuate significantly from one period to another 2.

Competitive position

Fiber optic cable lines compete with large manufacturers such as Corning, CommScope, Prysmian, Belden and Leviton, while copper lines compete with Prysmian, CommScope and Belden, many of which have substantially greater financial and research resources 1. In harsh environment and specialty connectivity the named competitors are Amphenol and Aptiv 1.

The source warns that new market entrants or expanded product lines from existing competitors could intensify competition 1.

  • CommScope Holding CompanyCOMM

    Competes across fiber cable, copper cable and enterprise connectivity, and is described in the source as having greater resources than the company.

  • Corning IncorporatedGLW

    Competes in fiber optic cable and enterprise connectivity and also manufactures optical fiber.

  • Belden Inc.BDC

    Competes in fiber and copper cable for data networks.

  • Amphenol CorporationAPH

    Competes in specialty connectors for military and harsh environment applications.

News & filings

In the press

The latest news item in our archive is from 10 Sept 2026; the newest SEC filing is from 11 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-10-31 · SEC / Optical Cable Corporation · 18 Dec 2025
  2. [2] Form 10-Q, quarter ended 2026-07-31 · SEC / Optical Cable Corporation · 09 Sept 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Optical Cable Corporation · 11 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.