ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Optical Cable's annualized net income for the quarter that ended in Apr. 2026 was $4.22 Mil. Optical Cable's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was $21.67 Mil. Therefore, Optical Cable's annualized ROE % for the quarter that ended in Apr. 2026 was 19.47%.
The historical rank and industry rank for Optical Cable's ROE % or its related term are showing as below:
OCC'
s ROE % Range Over the Past 10 Years
Min: -33.54 Med: -6.89 Max: 35.29
Current: 4.78
During the past 13 years, Optical Cable's highest ROE % was 35.29%. The lowest was -33.54%. And the median was -6.89%.
OCC's ROE % is ranked better than 50.56% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs OCC: 4.78
Optical Cable (NAS:OCC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Optical Cable ROE % Related Terms
Optical Cable ROE % Historical Data
* Premium members only.
The historical data trend for Optical Cable's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Communication Equipment subindustry, Optical Cable's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Optical Cable ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Optical Cable's ROE % distribution charts can be found below:
* The bar in red indicates where Optical Cable's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Optical Cable (OCC) has a ROE % of 19.47% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Optical Cable and its competitors. According to the industry distribution chart, Optical Cable ranks #1198 out of 2423 companies in the Hardware industry, placing it in the top 49.4%.
Is Optical Cable's ROE % too high?
Optical Cable's current ROE % is 19.47%. The Hardware industry median ROE % is 4.61. Optical Cable's value of 19.47% is 322.3% above this industry median. Based on the distribution chart, Optical Cable ranks #1198 out of 2423 companies in the Hardware industry, which is above the industry midpoint. Overall, Optical Cable has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Optical Cable's ROE % compare to AMPG and WATT?
According to the Hardware industry distribution chart, Optical Cable ranks #1198 out of 2423 companies for ROE %. This puts Optical Cable in the upper half of its industry. The industry median ROE % is 4.61. Optical Cable's value of 19.47% is 322.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Optical Cable's current ROE % of 19.47% is 322.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Optical Cable and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optical Cable's current ROE % is 19.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optical Cable stock overvalued right now?
Based on GuruFocus' analysis, Optical Cable (OCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.22, compared to a current price of $18.81 — trading 484.2% above its estimated fair value. The current ROE % is 19.47% and 322.3% above the Hardware industry median of 4.61. Optical Cable's overall GF Score™ is 46/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Optical Cable (OCC), the current ROE % is 19.47% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Optical Cable (OCC) Overvalued in 2026?
Based on GuruFocus' analysis, Optical Cable stock appears to be overvalued.
The current stock price of $18.81 is trading 484.2% above its estimated GF Value™ of $3.22.
GuruFocus considers Optical Cable to be Significantly Overvalued.
Key valuation signals for OCC:
ROE %: 19.47%
GF Value™: $3.22 vs. price of $18.81 (484.2% above fair value)
Industry Position: 322.3% above the Hardware median (#1198 of 2423)
No single metric tells the full story. See the OCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Optical Cable Corp manufactures a broad range of fiber optic and copper data communication cabling and connectivity solutions for the enterprise, wireless carrier, and specialty markets. The Company offers high quality products that operate as a system solution or integrate with other components, including fiber, copper, hybrid cabling, cabinets, racks, enclosures, and deployable solutions for enterprise networks, data centers, residential, campus, Passive Optical LAN installations, and customized applications in military, industrial, mining, petrochemical, renewable energy, and broadcast industries. It operates a single reportable segment covering the design, development, manufacture, and marketing of its cabling and connectivity solutions.
46GF Score
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