Encision (ECIA) AI Stock Analysis

• Market Cap: $1.99M
• Dividend Yield: N/A
• Average Volume (3M): 16.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• 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: 1.48
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: -12.31
• 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: $0.11 ▼(-20.71% 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

Healthy gross margin

A sustained ~53% gross margin indicates strong unit economics in medical instruments. That structural profitability at the gross level gives management room to absorb SG&A and R&D, and supports margin recovery if operating costs are stabilized over the next several quarters.

Proven cash generation in some years

Intermittent positive operating and free cash flow shows the business can be cash-generative under the right operating conditions. This reduces the structural funding burden risk and suggests the underlying business can self-fund growth or withstand shocks if management restores repeatable cash conversion.

Management cost-reduction move (deregistration)

Voluntary SEC deregistration is a durable, strategic move to cut recurring compliance costs and management time. Over months this can materially lower operating expenses and preserve cash, allowing reallocation to core operations if the company maintains transparent voluntary reporting to key stakeholders.

Negative Factors

TTM balance-sheet red flag

Zero equity and negative total assets on a TTM basis is a structural solvency concern. It erodes the company’s buffer against losses, constrains borrowing capacity, increases counterparty risk, and makes the business vulnerable to setbacks over the next several months without decisive balance-sheet repair or new financing.

Ongoing negative cash flow and losses

Persistent negative margins and TTM cash burn signal the core operations are not consistently self-sustaining. Over a multi-month horizon this pressures liquidity, forces dependence on external funding, and limits investment in go-to-market or product development needed to reverse revenue decline.

Transparency and liquidity risk from deregistration

Removing SEC reporting reduces audited disclosure and can deter institutional holders, lowering market liquidity and raising the company’s cost of capital. Structurally, this makes future equity raises harder and increases investor exit risk over the coming months.

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

null

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	1.53M	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 0.14, below the 50-day MA of 0.16, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.84 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	$1.35M	-2.02	―	―	―	―
LUCY	43 Neutral	$5.72M	-1.28	-74.10%	―	53.22%	72.69%
GCTK	42 Neutral	$1.10M	-0.36	―	―	―	60.83%
ECIA	38 Underperform	$1.99M	-5.16	-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.