Encision (ECIA) AI Stock Analysis

• Market Cap: $3.80M
• Dividend Yield: N/A
• Average Volume (3M): 5.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -0.56%
• EPS Growth: 53.23%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 11,879,645
• 10 Day Avg. Volume: 8,736
• 30 Day Avg. Volume: 5,542
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: -47.05
• 1Y Price Target: $0.50
• Price Target Upside: 56.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $0.50 ▲(56.25% Upside)

Encision's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative profitability. However, the recent private placement and technical indicators provide some positive momentum. The valuation remains a concern due to negative earnings.

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 sale of its surgical instruments and related products. Key revenue streams include direct sales to hospitals and surgical centers, as well as distribution agreements with medical device wholesalers. The company also benefits from recurring revenue through the sale of consumables associated with its surgical instruments. Additionally, partnerships with healthcare providers and participation in surgical training and education initiatives contribute to brand recognition and sales growth. The combination of innovative technology, a focus on patient safety, and strategic partnerships helps Encision sustain its earnings.

Encision Financial Statement Overview

Summary

Encision faces several financial challenges, including negative profitability margins and cash flow issues. While the company maintains a manageable level of debt, its ability to generate returns and cash is concerning. The financial trajectory suggests a need for strategic improvements to enhance profitability and cash flow generation.

Income Statement

Encision's income statement shows a mixed performance. The company has experienced fluctuating revenue growth, with a significant decline in the latest year. Gross profit margins have been relatively stable, but net profit margins are negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet reveals 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 shareholder investments. The equity ratio is not provided, but the overall financial stability appears to be under pressure.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows in the most recent year. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting income into cash. The free cash flow to net income ratio is positive, but this is due to negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.53M	6.56M	6.59M	7.35M	7.67M	7.54M
Gross Profit	3.45M	3.51M	3.14M	4.03M	3.79M	3.90M
EBITDA	-143.16K	-95.08K	-544.20K	-217.51K	55.10K	760.82K
Net Income	-283.37K	-220.20K	-691.78K	-366.00K	463.34K	584.73K
Balance Sheet
Total Assets	4.13M	3.67M	3.81M	4.13M	4.79M	5.66M
Cash, Cash Equivalents and Short-Term Investments	47.92K	257.43K	42.51K	189.00K	950.00K	1.47M
Total Debt	1.84M	1.31M	1.33M	1.08M	1.15M	2.00M
Total Liabilities	2.51M	2.02M	1.98M	1.64M	2.05M	2.86M
Stockholders Equity	1.62M	1.65M	1.83M	2.50M	2.75M	2.80M
Cash Flow
Free Cash Flow	-268.43K	-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: 0.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.32 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.32, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.96 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	62 Neutral	$12.06M	1.10	7.10%	―	-0.19%	-18.41%
ECIA	52 Neutral	$3.80M	―	-16.28%	―	-0.56%	53.23%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%
MLSS	46 Neutral	$48.48M	―	-123.50%	―	7.84%	-43.00%
FEMY	44 Neutral	$16.17M	―	-329.45%	―	98.61%	-1.98%
POAI	39 Underperform	$9.85M	―	-708.73%	―	-38.79%	58.27%
STSS	―	$275.77M	―	-6.65%	―	―	―

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.