Optex Systems Holdings

OPXS

Aerospace & Defense · Industrials

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 28, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Good

Stability

Exceptional

Valuation

Good

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Winston Score History

The full picture

Optex Systems Holdings makes optical components and assemblies used in military equipment. Its main products include sighting systems, periscopes, and laser filters built into weapons, armored vehicles, and aircraft. The company sells almost entirely to the U.S. Department of Defense and large defense contractors like BAE Systems and General Dynamics.

Optex earns revenue by fulfilling government contracts and subcontracts, typically on a fixed-price or cost-plus basis. It operates out of a single facility in Richardson, Texas, which keeps its footprint small but also concentrates its risk. With a market cap around $100 million, it is a niche supplier, and its moat comes from specialized manufacturing know-how and long-standing program relationships that are difficult for new competitors to break into quickly. The biggest risk the company faces is customer concentration — a slowdown in defense spending or the loss of a key program could have an outsized impact on revenue.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-12.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-18.2% YoY

YoY Growth Rate

Earnings declining

Insider Activity

20.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$6.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Optex Systems Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

34.2%

Modest — 34.2% gross margin

Profit after running costs

Operating Margin

14.3%

Healthy — 14.3% operating margin

Return on the money invested

ROCE

0.0%

Weak — 0.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+0.8%

Nearly flat sales (+0.8% YoY)

Profit growth

EPS YoY

-26.0%

Earnings shrinking (-26.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

25477%

Turns 25477% of profit into real cash

Spare cash per sale

FCF Margin

-164.5%

Burning cash (-164.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.05

Conservative — low debt load (0.05)

Covers its interest

Interest Cover

100.00x

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

20.1x

no trend

Growth-priced — P/E 20.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+5.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (20.1 → 14.5)

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Dividends

Not applicable for this business.

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