Encision (ECIA) AI Stock Analysis

• Market Cap: $3.18M
• Dividend Yield: N/A
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• 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: 1.82
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: -24.07
• 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: 42 Neutral
• Price Target: $0.14 ▲(2.86% Upside)

ECIA scores low primarily due to weak financial performance—ongoing losses, negative TTM cash flow, and especially the TTM balance-sheet red flags (zero equity/negative assets). Technicals also weigh on the score with a clear downtrend and negative MACD, despite an RSI near oversold. Valuation provides limited support because the negative P/E reflects unprofitable operations and there is no dividend yield.

Positive Factors

Innovative Product Line

Encision's focus on innovative products like AEM technology provides a competitive edge in enhancing surgical safety, potentially driving long-term demand.

Strategic Partnerships

Strategic partnerships expand market reach and sales channels, supporting revenue growth and enhancing the company's competitive position.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management at the production level, which can support profitability improvements with revenue growth.

Negative Factors

Declining Revenue

Declining revenue trends suggest challenges in market demand or competitive pressures, impacting the company's ability to sustain growth.

Negative Cash Flow

Negative cash flow indicates liquidity issues, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies, which can hinder the company's ability to achieve sustainable profitability.

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

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: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECIA, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.19, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
LUCY	48 Neutral	$8.45M	-0.58	-74.10%	―	53.22%	72.69%
ECIA	42 Neutral	$3.18M	-6.62	-21.36%	―	-2.97%	56.17%
GCTK	42 Neutral	$3.36M	>-0.01	―	―	―	60.83%
WOK	41 Neutral	$219.80K	―	―	―	―	―