📊 OFLX Key Takeaways
Is Omega Flex, Inc. (OFLX) a Good Investment?
Omega Flex exhibits a severe operational disconnect: revenue surged 4842% YoY while net income grew only 1.7%, accompanied by negative free cash flow of -$101K despite reported profitability. The strong balance sheet ($49.8M cash, zero debt) provides downside protection, but deteriorating cash generation and extremely weak returns (ROE 2.5%, ROA 2.1%) signal serious quality-of-earnings concerns requiring clarification before investment.
Omega Flex exhibits high-quality fundamentals: strong margins, double‑digit ROE/ROA without leverage, and robust free cash flow supported by low capex and excellent liquidity. The business is cash‑generative and resilient, but the outsized reported revenue jump appears anomalous while EPS declined, signaling potential mix, expense, or dilution pressure. Overall, balance sheet strength and profitability quality support a constructive view if margins and cash conversion hold.
Omega Flex, Inc. Key Strengths (OFLX)
- Fortress balance sheet with $49.8M cash and zero debt
- Exceptional liquidity with 5.72x current ratio and 4.76x quick ratio
- Healthy gross margin of 56.7% indicates strong unit economics
- Debt-free, cash-rich balance sheet with 5.2x current ratio
- High margins (60% gross, 17% operating) and strong ROE/ROA without leverage
- Strong cash conversion (OCF > NI) and low capex driving solid FCF margin
OFLX Stock Risks: Omega Flex, Inc. Investment Risks
- Negative free cash flow of -$101K despite positive net income signals working capital strain or earnings quality issues
- Massive revenue growth (4842% YoY) with negligible net income growth (1.7%) suggests one-time revenue event, margin compression, or accounting anomaly
- Critically low returns on equity (2.5%) and assets (2.1%) indicate assets are not productively deployed despite healthy margins
- Reported revenue spike likely non-recurring; growth normalization could reduce operating leverage
- EPS decline despite higher net income suggests dilution or margin/expense pressure
- Exposure to construction cycles and raw material costs may compress margins
Key Metrics to Watch
- Free cash flow reconciliation: operating cash flow growth must align with reported profitability
- Gross margin trend on revenue from the 4842% growth period to isolate whether growth is accretive or dilutive
- Working capital changes: examine accounts receivable and inventory turnover to identify cash drain sources
- Gross margin trend
- OCF/Net income (cash conversion)
Omega Flex, Inc. (OFLX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.72x current ratio provides a solid financial cushion.
OFLX Profit Margin, ROE & Profitability Analysis
OFLX vs Consumer Sector: How Omega Flex, Inc. Compares
How Omega Flex, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Omega Flex, Inc. Stock Overvalued? OFLX Valuation Analysis 2026
Based on fundamental analysis, Omega Flex, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Omega Flex, Inc. Balance Sheet: OFLX Debt, Cash & Liquidity
OFLX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Omega Flex, Inc.'s revenue has declined by 22% over the 5-year period, indicating business contraction. The most recent EPS of $1.78 reflects profitable operations.
OFLX Revenue Growth, EPS Growth & YoY Performance
OFLX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $23.1M | $2.1M | $0.21 |
| Q3 2025 | $24.2M | $3.7M | $0.37 |
| Q2 2025 | $24.6M | $4.2M | $0.41 |
| Q1 2025 | $23.3M | $3.6M | $0.35 |
| Q3 2024 | $24.9M | $4.6M | $0.46 |
| Q2 2024 | $24.6M | $4.5M | $0.45 |
| Q1 2024 | $25.2M | $4.2M | $0.42 |
| Q3 2023 | $27.5M | $5.6M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Omega Flex, Inc. Dividends, Buybacks & Capital Allocation
OFLX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Omega Flex, Inc. (CIK: 0001317945)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OFLX
What is the AI rating for OFLX?
Omega Flex, Inc. (OFLX) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OFLX's key strengths?
Claude: Fortress balance sheet with $49.8M cash and zero debt. Exceptional liquidity with 5.72x current ratio and 4.76x quick ratio. ChatGPT: Debt-free, cash-rich balance sheet with 5.2x current ratio. High margins (60% gross, 17% operating) and strong ROE/ROA without leverage.
What are the risks of investing in OFLX?
Claude: Negative free cash flow of -$101K despite positive net income signals working capital strain or earnings quality issues. Massive revenue growth (4842% YoY) with negligible net income growth (1.7%) suggests one-time revenue event, margin compression, or accounting anomaly. ChatGPT: Reported revenue spike likely non-recurring; growth normalization could reduce operating leverage. EPS decline despite higher net income suggests dilution or margin/expense pressure.
What is OFLX's revenue and growth?
Omega Flex, Inc. reported revenue of $23.1M.
Does OFLX pay dividends?
Omega Flex, Inc. pays dividends, with $3.4M distributed to shareholders in the trailing twelve months.
Where can I find OFLX SEC filings?
Official SEC filings for Omega Flex, Inc. (CIK: 0001317945) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OFLX's EPS?
Omega Flex, Inc. has a diluted EPS of $0.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OFLX's fundamental grade?
Based on our AI fundamental analysis in May 2026, Omega Flex, Inc. has a A grade with 60% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is OFLX stock overvalued or undervalued?
Valuation metrics for OFLX: ROE of 2.5% (sector avg: 18%), net margin of 9.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is OFLX's AI grade for 2026?
Our dual AI analysis gives Omega Flex, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is OFLX's free cash flow?
Omega Flex, Inc.'s operating cash flow is $608.0K, with capital expenditures of $709.0K. FCF margin is -0.4%.
How does OFLX compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.0% (avg: 8%), ROE 2.5% (avg: 18%), current ratio 5.72 (avg: 1.5).