Omega Flex, Inc. (OFLX) | Investment Case

1. Company Snapshot

1.a. Company Description

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally.It offers flexible gas piping for use in residential and commercial buildings, as well as its fittings; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities.The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names.

It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries.The company sells its products through independent sales representatives, distributors, original equipment manufacturers, and direct sales, as well as through its website.The company was formerly known as Tofle America, Inc.

and changed its name to Omega Flex, Inc.in 1996.Omega Flex, Inc.

was incorporated in 1975 and is based in Exton, Pennsylvania.

Show Full description

1.b. Last Insights on OFLX

The recent 3-month performance of Omega Flex, Inc. was negatively impacted by a decline in housing starts, leading to suppressed market conditions and lower sales unit volumes. The company's net sales for Q4 2024 decreased by 4.2% year-over-year, primarily due to the aforementioned market challenges. Additionally, the company's net sales for 2024 decreased by 8.8% compared to 2023, resulting in a decline of $9.784 million.

1.c. Company Highlights

Last Price	27.77
Change Percentage	-2.15%
Open	28.48
Previous Close	28.38
Market Cap ( Millions)	280
Volume	29450
Year High	48.34
Year Low	25.58
M A 50	28.38
M A 200	32.51

FCF Yield	6.15%
Dividend Yield	4.90%
ROE	19.24%
Debt / Equity	5.86%
Net Debt / EBIDTA	-224.73%
Price To Book	3.33
Price Earnings Ratio	17.42
Price To FCF	16.25
Price To sales	2.8
EV / EBITDA	11.93

2. Transcript Summary

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3. NewsRoom

Omega Flex's Q3 Earnings Slip Y/Y Due to Elevated Costs

Nov -04

Source: zacks.com

Omega Flex, Inc. Announces Regular Quarterly Dividend for the Third Quarter 2025

Sep -12

Source: globenewswire.com

Omega Flex: A Robust Business, But Fairly Valued

Aug -07

Source: seekingalpha.com

OFLX's Q2 Earnings Slip Y/Y Amid Housing Market Slowdown

Aug -05

Source: zacks.com

Omega Flex (OFLX) Q2 Revenue Rises 4%

Aug -01

Source: fool.com

Omega Flex, Inc. Announces Second Quarter 2025 Earnings

Jul -30

Source: globenewswire.com

Omega Flex, Inc. Announces Regular Quarterly Dividend for the Second Quarter 2025

Jun -18

Source: globenewswire.com

Omega Flex Q1 Earnings Drop Y/Y on Weak Housing Demand, Stock Down 2%

May -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Flexible Metal Hose and Accessories

Expected Growth: 4.5%

Growing demand for corrosion-resistant connectors in industrial applications, increasing adoption in oil and gas, chemical processing, and power generation industries, and rising need for flexible and reliable fluid conveyance systems drive the growth of the flexible metal hose and accessories market.

7. Detailed Products

TruFlex

A flexible, corrugated, stainless steel tubing used for gas piping systems in residential and commercial applications.

CounterFlex

A flexible, corrugated, stainless steel tubing used for gas piping systems in commercial kitchen applications.

MedTran

A medical gas piping system used in healthcare facilities for oxygen, nitrous oxide, and other medical gases.

AutoFlare

A flexible, corrugated, stainless steel tubing used for fueling systems in automotive applications.

FlareFree

A flexible, corrugated, stainless steel tubing used for fueling systems in industrial applications.

8. Omega Flex, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Omega Flex, Inc. faces moderate threat from substitutes due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

Omega Flex, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, resulting in a low threat.

Bargaining Power Of Suppliers

Omega Flex, Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power, but the company's large scale of operations mitigates this threat.

Threat Of New Entrants

The capital-intensive nature of the industry and the need for specialized equipment and expertise make it difficult for new entrants to join the market, reducing the threat.

Intensity Of Rivalry

The industry is highly competitive, with several established players competing for market share, leading to a high level of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.61%
Debt Cost	3.95%
Equity Weight	96.39%
Equity Cost	5.75%
WACC	5.69%
Leverage	3.74%

11. Quality Control: Omega Flex, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Luxfer

A-Score: 6.1/10

Value: 6.7

Growth: 5.4

Quality: 5.8

Yield: 7.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Omega Flex

A-Score: 4.7/10

Value: 4.4

Growth: 3.2

Quality: 8.2

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

Xometry

A-Score: 4.6/10

Value: 6.6

Growth: 6.3

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

American Superconductor

A-Score: 4.1/10

Value: 0.2

Growth: 7.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Helios Technologies

A-Score: 3.8/10

Value: 3.0

Growth: 4.0

Quality: 5.8

Yield: 1.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

Hurco

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 3.4

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.70%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.69%

Omega Flex, Inc. - US6820951043

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OFLX

1.c. Company Highlights

Better Quality

Weak Momentum

Expensive

Fairly Valued

Average Yield

Higher Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Flexible Metal Hose and Accessories

Expected Growth: 4.5%

7. Detailed Products

TruFlex

CounterFlex

MedTran

AutoFlare

FlareFree

8. Omega Flex, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Omega Flex, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.77$

Current Price

27.77$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA