Encision (ECIA) AI Stock Analysis

• Market Cap: $2.55M
• Dividend Yield: N/A
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -2.97%
• EPS Growth: 56.17%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.02
• 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: 2.72
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: -28.90
• 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: 48 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Encision's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability. Technical analysis suggests a bearish trend, though there may be potential for a reversal. Valuation concerns are significant due to negative earnings and the lack of a dividend yield.

Positive Factors

Innovative Product Offering

Encision's AEM technology addresses critical safety concerns in surgeries, providing a competitive edge in the medical device market.

Strategic Partnerships

Strategic partnerships enhance market reach and sales growth, supporting long-term revenue stability and expansion opportunities.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management, which can support future profitability improvements if revenue stabilizes.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses a risk to long-term growth and market position, necessitating strategic initiatives to reverse the trend.

Negative Cash Flow

Negative cash flow impacts the company's ability to invest in growth opportunities and may limit operational flexibility over time.

Negative Profitability

Negative profitability reflects operational inefficiencies, which can hinder long-term financial health and shareholder value creation.

Encision Business Overview & Revenue Model

Company Description

Encision Inc. (ECIA) is a medical device company specializing in the development and manufacturing of innovative surgical instruments designed to improve the safety and efficacy of minimally invasive surgeries. The company primarily operates in the healthcare sector, focusing on electrosurgical devices and technologies that enhance surgical outcomes. Key products include the AEM (Active Electrode Monitoring) technology, which is used to prevent unintended burns during laparoscopic surgeries, and various instruments that facilitate precise surgical procedures.

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

Encision faces financial challenges with declining revenues, negative profitability, and cash flow constraints. The company's leverage is moderate, but the negative return on equity and cash flow issues suggest a need for strategic improvements to enhance financial stability and performance.

Income Statement

Encision's income statement shows a declining revenue trend with a significant drop in revenue growth rate over the past periods. The company is experiencing negative net profit margins and EBIT margins, indicating operational challenges. The gross profit margin remains relatively stable, but the overall profitability is under pressure due to consistent net losses.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio below 1, suggesting manageable debt levels. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, highlighting liquidity challenges. Although there is a significant improvement in free cash flow growth in the latest period, the overall cash flow position remains weak. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	-201.62K	3.67M	3.81M	4.13M	4.79M	5.66M
Cash, Cash Equivalents and Short-Term Investments	-242.15K	257.43K	42.51K	189.00K	950.00K	1.47M
Total Debt	0.00	1.31M	1.33M	1.08M	1.15M	2.00M
Total Liabilities	0.00	2.02M	1.98M	1.64M	2.05M	2.86M
Stockholders Equity	0.00	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: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.15 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.24, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 26.95 is Positive, neither overbought nor oversold. The STOCH value of 37.04 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
MHUA	58 Neutral	$7.02M	40.95	5.90%	―	-4.99%	-19.10%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ECIA	48 Neutral	$2.55M	-5.32	-21.36%	―	-2.97%	56.17%
POAI	47 Neutral	$14.46M	-0.04	―	―	-47.20%	-163.70%
WOK	41 Neutral	$56.04K	―	―	―	―	―
LUCY	35 Underperform	$7.49M	-0.53	-74.10%	―	53.22%	72.69%
GCTK	28 Underperform	$4.72M	>-0.01	―	―	―	60.83%

Encision Corporate Events

Encision Completes $500,000 Private Placement of Shares

On August 19, 2025, Encision Inc. completed a $500,000 private placement of 5,000,000 shares of common stock at $0.10 per share with a group of investors, including company directors, executive officers, existing shareholders, and new investors. The funds are intended to support ongoing operations and the anticipated launch of a new ENT device in early 2026, reflecting the company’s strategic focus on expanding its product offerings and maintaining its competitive position in the medical device industry.

The most recent analyst rating on (ECIA) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Encision stock, see the ECIA Stock Forecast page.

Encision Inc. Delays Q2 2025 Financial Report

Encision Inc. has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending June 30, 2025. The delay is primarily due to unexpected complications with the inline XBRL process on the filing due date. The company expects to file the report within the five-day extension period allowed by Rule 12b-25. Encision has indicated that there will be no significant changes in the financial results compared to the corresponding period last year, and no forward-looking statements have been made. The company is committed to maintaining compliance with filing requirements, as evidenced by the signature of Brandon Shepard, the Controller and Principal Accounting Officer.