Optex Systems Holdings (OPXS) has just posted its latest Q1 2026 numbers, with recent quarterly revenue sitting at US$11.3 million, basic EPS at roughly US$0.15 and trailing 12 month earnings growth of 36.4% backed by a net profit margin of 12.5% versus 11.1% a year ago. Over the past few quarters, the company has seen revenue move from US$9.4 million in Q4 2024 to US$11.3 million in Q4 2025. Basic EPS across those same quarters ranged between about US$0.12 and US$0.26, reflecting how the earnings line has tracked alongside the top line. With margins higher over the last year and profit growth firmly supported by the trailing numbers, this set of results gives investors a clean, margin focused snapshot of how the business is converting sales into bottom line profit.

With the headline figures on the table, the next step is to see how this earnings story lines up against the widely followed narratives around Optex Systems, and where the latest margin and growth trends might challenge those views.

TTM earnings growth running at 36.4%

• Over the trailing 12 months, earnings grew 36.4%, with net income reaching US$5.1 million on US$41.3 million of revenue and a net margin of 12.5% versus 11.1% a year earlier.
• What stands out for a bullish view is that this 36.4% earnings growth and 35.7% five year earnings growth rate sit alongside a 12.5% net margin, which suggests:
  • Recent profit levels are supported by both higher revenue over the trailing period and margins that are above the 11.1% margin reported a year ago.
  • The earnings line, with trailing basic EPS of about US$0.75, has moved in step with revenue rising from US$34.0 million to US$41.3 million over the last reported trailing periods, which is consistent with a growth focused thesis.

Investors who want to see how these trailing growth numbers fit into the wider story around Optex can dig into the broader community views in the Curious how numbers become stories that shape markets? Explore Community Narratives.

P/E of 19.3x versus 41.9x industry

• Optex is currently on a trailing P/E of 19.3x compared with a peer average of 26.6x and a US Aerospace & Defense industry average of 41.9x, while the share price sits at US$14.40.
• Supporters of a bullish angle often point to this lower P/E and the reported earnings profile as a potential value gap, but the numbers also invite a closer look:
  • The P/E of 19.3x is being applied to trailing basic EPS of roughly US$0.75, which is based on TTM net income of about US$5.1 million, so any change in profitability could move that multiple quickly.
  • Compared with the DCF fair value of US$25.59 per share, the current price of US$14.40 sits about 43.7% below that modelled level, which is a wide spread that different investors may interpret in different ways.

Bulls and skeptics often read the same valuation data very differently, so if you want to see how each side frames these numbers, it is worth reviewing the full range of views in 📊 Read the full Optex Systems Holdings Consensus Narrative..

DCF fair value US$25.59 vs US$14.40 price

• The supplied DCF fair value of US$25.59 per share is well above the current share price of US$14.40, a gap of about 43.7% based on the latest inputs.
• General market opinion often uses this kind of gap alongside the profit record as a cross check, and here the contrast is quite clear:
  • On one side, trailing 12 month net income of US$5.1 million and basic EPS of about US$0.75 are consistent with the DCF model using current profitability as a base input.
  • On the other, the lower market P/E of 19.3x relative to the 41.9x industry average signals that investors are pricing Optex differently from many Aerospace & Defense names despite the 36.4% trailing earnings growth.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Optex Systems Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Despite solid trailing earnings growth and a 12.5% net margin, the relatively low 19.3x P/E compared with a 41.9x industry average suggests the market may be cautious on the stock.

If that gap makes you want a stronger margin of safety, take a few minutes to scan our 52 high quality undervalued stocks and see which ideas might better fit your risk and return expectations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.