Encision (ECIA) AI Stock Analysis

• Market Cap: $1.77M
• Dividend Yield: N/A
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -2.97%
• EPS Growth: 56.17%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 16,879,644
• 10 Day Avg. Volume: 10,380
• 30 Day Avg. Volume: 16,177
• PEG Ratio: 0.38
• Price to Book (P/B): 3.45
• Price to Sales (P/S): 0.87
• P/FCF Ratio: -42.25
• Enterprise Value/Market Cap: 2.42
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: -17.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $0.10 ▼(-29.29% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by weak financial performance, including ongoing losses, negative TTM cash flow, and a major TTM balance-sheet red flag (zero equity/negative assets). Technicals add pressure with a clear downtrend (price below all key DMAs) and negative MACD, while valuation is difficult to rely on due to a negative P/E. The SEC deregistration announcement further weighs on the outlook due to reduced disclosure and potential liquidity risk.

Positive Factors

High gross margin

A sustained ~53% gross margin indicates strong unit economics in its medical instruments business. This margin provides a durable buffer to absorb operating costs and supports eventual operating leverage if management curbs SG&A, aiding medium-term path to profitability.

Proven cash generation in select years

The company has demonstrated it can generate positive operating and free cash flow in discrete years, showing the business model can be cash generative. That historic capability suggests management can restore cash conversion through cost control or volume recovery.

Lean cost structure

A headcount of 22 implies a low fixed-cost base and potential agility. Lower structural payroll and overhead can extend runway, enable tighter expense control, and allow the company to scale selectively without large increases in fixed operating leverage.

Negative Factors

TTM negative equity

Zero equity and negative total assets in the trailing-twelve-months materially weaken the financial cushion. Persistent negative net assets constrain borrowing, increase counterparty risk, and raise the likelihood of dilutive or punitive financing needs over the medium term.

Negative operating/free cash flow trend

Negative OCF and FCF on a TTM basis indicate ongoing cash burn despite occasional positive years. Continued outflows pressure liquidity, force reliance on external capital, and limit the company's ability to invest in product development or commercial expansion sustainably.

Voluntary SEC deregistration

Filing Form 15 to end SEC reporting reduces mandated transparency and may impair access to capital and investor liquidity. As a structural change, deregistration can increase cost of capital and reduce market participation, hurting long-term funding flexibility.

Encision Business Overview & Revenue Model

Company Description

Encision Inc., a medical device company, designs, develops, manufactures, and markets patented surgical instruments in the United States. The company provides active electrode monitoring (AEM) surgical instruments and monitors that enhance patient safety and patient outcomes in laparoscopic surgical procedures. Its AEM instruments product line comprises a range of endo-mechanical instruments, including scissors, graspers, and dissectors, as well as fixed-tip electrodes and suction-irrigation electrodes. The company also offers various handles, which are used for advanced laparoscopic procedures that incorporate stiffer shafts and ergonomic features; and AEM EndoShield 2 burn protection systems, as well as markets AEM monitor product line that is used in conjunction with AEM instruments. The company sells its products through a network of direct and independent sales representatives. Encision Inc. was incorporated in 1991 and is based in Boulder, Colorado.

How the Company Makes Money

Encision generates revenue primarily through the sales of its electrosurgical devices and related instruments to hospitals and surgical centers. The company's revenue model is based on direct sales of its products, which are often sold through a combination of direct sales representatives and distribution partnerships. Key revenue streams include the sale of AEM technology devices, disposable surgical instruments, and ongoing service and support agreements. Significant partnerships with medical device distributors and collaborations with healthcare institutions also contribute to its earnings, as these relationships help to expand market reach and drive sales growth.

Encision Financial Statement Overview

Summary

Weak overall fundamentals: TTM net margin is negative (~-6%) with negative EBIT/EBITDA margins, revenue is down (~-3.5% TTM), and TTM operating/free cash flow are negative. The biggest risk is the TTM balance sheet showing zero equity and negative total assets, despite a healthy gross margin (~53%) that suggests viable unit economics if costs are controlled.

Income Statement

ECIA’s profitability profile is weak: TTM (Trailing-Twelve-Months) net margin is negative (~-6%) with negative EBIT/EBITDA margins, indicating the core business is still loss-making. Revenue has also contracted over time (TTM revenue down ~3.5%, with several prior years also showing declines). A key positive is that gross margin remains healthy (TTM ~53%) and has been relatively resilient, suggesting the product economics are workable—but operating costs continue to prevent consistent bottom-line profitability (despite profitability in 2021–2022).

Balance Sheet

The balance sheet shows elevated risk signals. While annual periods (2023–2025) show moderate leverage (debt-to-equity roughly ~0.43–0.80), the TTM (Trailing-Twelve-Months) snapshot reports zero equity and negative total assets, which materially weakens the financial cushion and makes leverage/returns less meaningful at the TTM level. Annual return on equity also turned negative in 2023–2025, reinforcing that losses have been eroding shareholder value.

Cash Flow

Cash generation is inconsistent and currently pressured: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative, and free cash flow growth is also negative. The company did demonstrate it can generate cash in some years (positive operating and free cash flow in 2021 and 2024), but the multi-year pattern includes sizable cash burn (notably 2022–2023 and again TTM), which raises funding and liquidity concerns if the trend persists.

Breakdown	TTM	Jun 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.30M	6.56M	6.59M	7.35M	7.67M	7.54M
Gross Profit	3.32M	3.51M	3.14M	4.03M	3.79M	3.90M
EBITDA	-239.94K	-95.08K	-544.20K	-217.51K	55.10K	760.82K
Net Income	-380.94K	-220.20K	-691.78K	-366.00K	463.34K	584.73K
Balance Sheet
Total Assets	4.06M	3.67M	3.81M	4.13M	4.79M	5.66M
Cash, Cash Equivalents and Short-Term Investments	71.73K	257.43K	42.51K	189.00K	950.00K	1.47M
Total Debt	2.49M	1.31M	1.33M	1.08M	1.15M	2.00M
Total Liabilities	2.19M	2.02M	1.98M	1.64M	2.05M	2.86M
Stockholders Equity	1.86M	1.65M	1.83M	2.50M	2.75M	2.80M
Cash Flow
Free Cash Flow	-208.51K	-134.97K	107.57K	-1.04M	-480.00K	175.00K
Operating Cash Flow	-287.98K	-54.95K	144.39K	-861.00K	-444.00K	220.00K
Investing Cash Flow	-67.17K	-80.03K	-36.82K	-183.00K	-36.00K	-45.00K
Financing Cash Flow	132.63K	349.90K	-254.02K	284.00K	-44.00K	914.00K

Encision Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECIA, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 33.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECIA.

Encision Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
WOK	47 Neutral	$1.63M	-0.01	―	―	―	―
LUCY	43 Neutral	$5.99M	-0.45	-74.10%	―	53.22%	72.69%
GCTK	42 Neutral	$1.56M	>-0.01	―	―	―	60.83%
ECIA	38 Underperform	$1.77M	-5.28	-21.36%	―	-2.97%	56.17%

Encision Corporate Events

Encision to Deregister Common Stock and End SEC Reporting

On January 29, 2026, Encision Inc. announced that its board had approved the voluntary deregistration of its common stock with the Securities and Exchange Commission by filing a Form 15 under Section 12(g) of the Exchange Act. The move, expected to become fully effective 90 days after filing, will suspend the company’s SEC reporting obligations, including annual, quarterly, and current reports, and is aimed at reducing compliance costs and management burden relative to Encision’s size and market capitalization, while the company intends to continue publishing unaudited quarterly and annual financial results and expects its shares to keep trading on the over-the-counter market, albeit without assurance of continued liquidity.

The most recent analyst rating on (ECIA) stock is a Hold with a $0.14 price target. To see the full list of analyst forecasts on Encision stock, see the ECIA Stock Forecast page.