Omega Flex, Inc. Fundamental Analysis (NASDAQ: OFLX)
Omega Flex, Inc. (NASDAQ: OFLX) shows moderate financial fundamentals with a PE ratio of 22.77, profit margin of 10.73%, and ROE of 12.75%. The company generates $0.1B in annual revenue with weak year-over-year growth of -3.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OFLX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOFLX demonstrates superior asset utilization.
Valuation Score
ExcellentOFLX trades at attractive valuation levels.
Growth Score
WeakOFLX faces weak or negative growth trends.
Financial Health Score
ExcellentOFLX maintains a strong and stable balance sheet.
Profitability Score
WeakOFLX struggles to sustain strong margins.
Key Financial Metrics
Is OFLX Expensive or Cheap?
P/E Ratio
OFLX trades at 22.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OFLX's PEG of -0.67 indicates potential undervaluation.
Price to Book
The market values Omega Flex, Inc. at 2.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 20.14 times EBITDA. This signals the market has high growth expectations.
How Well Does OFLX Make Money?
Net Profit Margin
For every $100 in sales, Omega Flex, Inc. keeps $10.73 as profit after all expenses.
Operating Margin
Core operations generate 12.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.75 in profit for every $100 of shareholder equity.
ROA
Omega Flex, Inc. generates $10.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Omega Flex, Inc. generates limited operating cash flow of $8.48M, signaling weaker underlying cash strength.
Free Cash Flow
Omega Flex, Inc. produces free cash flow of $7.08M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.70 in free cash annually.
FCF Yield
OFLX converts 2.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How OFLX Stacks Against Its Sector Peers
| Metric | OFLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.77 | 27.44 | Better (Cheaper) |
| ROE | 12.75% | 1185.00% | Weak |
| Net Margin | 10.73% | -2.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 5.36 | 22.12 | Strong Liquidity |
| ROA | 10.51% | -1355419.00% (disorted) | Strong |
OFLX outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Omega Flex, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.09%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-25.53%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-11.07%
Industry Style: Cyclical, Value, Infrastructure
Declining