Macroaxis Stories

Is Syntec Optics (USA Stocks:OPTX) ready for a correction?

December 22, 2024  By Gabriel Shpitalnik
Macroaxis Story
Considering Syntec Optics' high Price to Book ratio of 10.56X, which significantly exceeds industry norms, the stock appears overvalued, suggesting a cautious approach. Additionally, with a Probability of Bankruptcy at 37.08%, potential investors might want to reassess the risk before committing to a purchase.

Key Takeaways

Syntec Optics Holdings has liabilities totaling $8.93 million. To support the existing expert consensus on Syntec Optics, we offer our insights. Our recommendation system uses a sophisticated algorithm that evaluates both technical and fundamental data to assess the company's growth potential.
Published 2 days ago
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Reviewed by Rifka Kats

Syntec Optics Holdings, trading under the ticker OPTX, is capturing the attention of investors as they assess its potential as a strategic buying opportunity. With a market capitalization of $33.8 million, the company operates within the Electronic Components industry, a sector known for its dynamic growth and innovation. Despite facing a quarterly revenue growth decline of 9%, Syntec Optics has managed to maintain a positive income before tax of $1.3 million, indicating resilience in its financial operations. The company's enterprise value of $138.9 million suggests that investors are valuing its future potential significantly higher than its current market cap. As investors weigh these factors, the question remains whether Syntec Optics is positioned for a rebound or if caution is warranted. Many millennials might be steering clear of the electronic equipment, instruments, and components sector, but let's take a closer look at Syntec Optics Holdings to understand its current market dynamics. We'll explore why there's still optimism about a potential recovery. Is Syntec Optics' valuation reasonable? I'll delve into the company's valuation to provide you with a clearer perspective on whether it's worth considering an investment.
We determine the current worth of Syntec Optics Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Syntec Optics Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Syntec Optics's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Syntec Optics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Syntec Optics. We calculate exposure to Syntec Optics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Syntec Optics's related companies.

Syntec Optics Holdings Investment Alerts

Syntec investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Syntec Optics Holdings performance across your portfolios.Please check all investment alerts for Syntec

Syntec Optics Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Syntec value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Syntec Optics competition to find correlations between indicators driving the intrinsic value of Syntec.

Syntec Optics Gross Profit

Syntec Optics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Syntec Optics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Syntec Optics Gross Profit growth over the last 10 years. Please check Syntec Optics' gross profit and other fundamental indicators for more details.

Detailed Perspective On Syntec Optics

This firm reported the previous year's revenue of 29.44 M. Net Income was 1.98 M with profit before overhead, payroll, taxes, and interest of 0.

Margins Breakdown

Syntec profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Syntec Optics itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of Syntec Optics profit margins.
0.0319
Operating Profit Margin
0.0637
Net Profit Margin
0.0545
Pretax Profit Margin
Pretax Profit Margin0.0545
Operating Profit Margin0.0319
Net Profit Margin0.0637
Gross Profit Margin0.2
Timing can be everything when it comes to investing. Syntec Optics Holdings, trading under the ticker OPTX, presents an intriguing case for potential investors. With a current valuation of $138.87 million and a modest net income of $1.98 million, the company operates within the competitive electronic components industry. Despite a slight quarterly revenue decline of 9%, the firm maintains a positive cash flow from operations at $2.79 million, suggesting operational resilience. Given the high insider ownership of 83.40%, there's a strong indication of confidence from those closest to the company's operations, potentially signaling a strategic buying opportunity for those willing to navigate its risks..

Our take on today Syntec Optics rise

Syntec Optics Holdings is seeing a significant rise today, with a skewness of 3.0 indicating a strong positive tilt in its return distribution. This suggests that investors are increasingly interested in the stock, possibly due to optimistic expectations or recent positive news about the company. Such skewness often signals bullish sentiment, hinting at a higher chance of continued price increases. For those eyeing Syntec Optics, this might be a good time to ride the wave, while staying alert to any news that could affect its path. The stock is also experiencing high volatility, which can be crucial for timing trades.
Understanding these volatility patterns helps investors manage risk, especially during market downturns when increased volatility can impact stock prices and prompt portfolio adjustments.Considering the current landscape for Syntec Optics Holdings, it might be prudent to reassess your position in this stock. With a possible upside price of 25.18, there is potential for growth, but it's crucial to weigh this against the valuation real value of 2.83, which suggests a more conservative outlook. The fiscal year ends in December, providing a natural checkpoint to evaluate performance and market conditions. If your investment strategy leans towards caution, it might be wise to consider exiting or at least reducing your exposure, especially if the stock's performance doesn't align with your financial goals. Always ensure your decisions are informed by the latest data and aligned with your risk tolerance..

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Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Syntec Optics Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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