Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $131.78M
• Dividend Yield: N/A
• Average Volume (3M): 29.60K
• Price to Earnings (P/E): 11.8
• Beta (1Y): -0.05
• Revenue Growth: 23.65%
• EPS Growth: 120.84%
• Country: US
• Employees: 146
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.40
• Shares Outstanding: 3,262,004
• 10 Day Avg. Volume: 32,852
• 30 Day Avg. Volume: 29,604
• PEG Ratio: 0.05
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -49.00
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 6.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $70.00M

• Rating: 78 Outperform
• Price Target: $44.00 ▲(19.70% Upside)

Pro-Dex's overall stock score is driven by strong financial performance and a favorable valuation, indicating a solid investment opportunity. The recent extension of a major customer contract further strengthens future revenue prospects. However, cash flow challenges and mixed technical indicators suggest areas for caution.

Positive Factors

Contract Extension

The extension of a major customer contract through 2028 provides significant revenue visibility and underscores the company's strategy of maintaining long-term relationships with key clients, enhancing future growth prospects.

Revenue Growth

Consistent revenue growth reflects the company's expanding market reach and product adoption, supporting long-term financial performance and competitive positioning.

Profitability

Strong profitability metrics indicate efficient operations and effective cost management, which are crucial for sustaining long-term business success and shareholder value.

Negative Factors

Cash Flow Challenges

Negative operating cash flow and declining free cash flow can strain financial resources, potentially limiting the company's ability to invest in growth opportunities and manage financial obligations.

Cash Flow Challenges

Persistent cash flow challenges may impact the company's ability to sustain operations and invest in future growth, posing a risk to long-term financial health.

Cash Flow Challenges

A significant decrease in free cash flow indicates potential liquidity issues, which could affect the company's capacity to fund new projects and meet financial commitments.

Pro-Dex Business Overview & Revenue Model

Company Description

Pro-Dex, Inc. (PDEX) is a publicly traded company that specializes in the development and manufacture of innovative products for the medical and industrial sectors. The company focuses primarily on the production of precision-engineered devices and components, including surgical instruments, dental equipment, and robotic systems. Pro-Dex is known for its commitment to quality and technological advancement, providing solutions that enhance efficiency and safety in medical procedures and industrial applications.

How the Company Makes Money

Pro-Dex generates revenue through the sale of its medical and industrial products, which include surgical instruments, dental devices, and automation solutions. The company typically operates on a business-to-business (B2B) model, supplying healthcare institutions, dental practices, and industrial clients. Key revenue streams include direct sales of products, contracts with hospitals and clinics, as well as partnerships with original equipment manufacturers (OEMs) for custom solutions. Additionally, Pro-Dex may benefit from service agreements and maintenance contracts related to its products. The company’s emphasis on innovation and quality allows it to command premium pricing, contributing to its overall profitability.

Pro-Dex Financial Statement Overview

Summary

Pro-Dex exhibits strong financial health with robust revenue growth and profitability. The balance sheet is well-managed, with moderate leverage and high return on equity. However, cash flow challenges persist, with negative operating cash flow, which could pose risks if not addressed.

Income Statement

Pro-Dex has demonstrated strong revenue growth with a 5.46% increase in the TTM period. The company maintains healthy profitability metrics, with a gross profit margin of 28.09% and a net profit margin of 15.93%. The EBIT and EBITDA margins are also solid at 13.41% and 19.17%, respectively, indicating efficient operations. The consistent improvement in revenue and margins suggests a positive trajectory in financial performance.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity (ROE) is impressive at 30.82%, showcasing effective use of equity to generate profits. The equity ratio stands at 64.58%, suggesting a strong equity base relative to total assets. Overall, the balance sheet is robust, with a good balance between debt and equity.

Cash Flow

Cash flow analysis reveals challenges, as operating cash flow is negative at -$1.26 million, and free cash flow has decreased by 29.17% in the TTM period. However, the free cash flow to net income ratio is strong at 1.65, indicating that the company is generating cash relative to its net income. Despite the negative cash flow, the ability to convert income into cash remains a positive aspect.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.23M	66.59M	53.84M	46.09M	42.04M	42.04M
Gross Profit	19.73M	19.51M	14.55M	12.75M	13.13M	13.13M
EBITDA	17.09M	14.13M	4.35M	10.82M	6.88M	6.88M
Net Income	11.19M	8.98M	2.13M	7.07M	4.57M	4.57M
Balance Sheet
Total Assets	64.30M	61.19M	52.48M	51.82M	49.09M	49.09M
Cash, Cash Equivalents and Short-Term Investments	514.00K	7.16M	6.85M	4.07M	1.60M	1.60M
Total Debt	13.79M	16.58M	13.55M	14.79M	15.97M	15.97M
Total Liabilities	22.79M	24.56M	21.61M	20.23M	23.66M	23.66M
Stockholders Equity	41.51M	36.63M	30.87M	31.59M	25.43M	25.43M
Cash Flow
Free Cash Flow	-2.07M	-2.93M	5.22M	4.49M	-2.52M	-2.52M
Operating Cash Flow	-1.26M	-1.68M	6.20M	5.46M	-847.00K	-847.00K
Investing Cash Flow	95.00K	-238.00K	-2.23M	-885.00K	-1.24M	-1.24M
Financing Cash Flow	-1.40M	-292.00K	-4.27M	-2.49M	-790.00K	-790.00K

Pro-Dex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDEX, the sentiment is Neutral. The current price of 36.76 is below the 20-day moving average (MA) of 40.87, above the 50-day MA of 34.66, and below the 200-day MA of 42.65, indicating a neutral trend. The MACD of 1.91 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 36.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDEX.

Pro-Dex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDEX	78 Outperform	$131.78M	11.77	30.92%	―	23.65%	120.84%
UTMD	63 Neutral	$180.33M	15.92	9.59%	2.15%	-12.35%	-17.20%
KRMD	59 Neutral	$300.17M	-77.20	-21.71%	―	22.12%	69.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pro-Dex Corporate Events

Pro-Dex Extends Major Customer Contract Through 2028

On December 19, 2025, Pro-Dex, Inc. announced that it executed a contract amendment on December 17, 2025, extending its agreement with its largest customer for three additional years, from a prior termination date of December 31, 2025, to a new end date of December 31, 2028. The renewed contract includes minimum purchase volumes for 2026 and 2027, reinforcing what will become more than 15 years of collaboration with this key customer and providing greater visibility into future revenue, which management says positions the company for continued revenue growth and underscores its strategy of maintaining long-term relationships with major clients.

Pro-Dex Grants Shares and Holds Annual Meeting

On November 20, 2025, Pro-Dex, Inc.’s Compensation Committee approved the grant of restricted common shares to non-employee directors and select employees, including 1,000 shares to CFO Alisha K. Charlton, under its 2016 Equity Incentive Plan. Additionally, a discretionary cash bonus equivalent to 1,000 shares was awarded to CEO Richard L. Van Kirk. The same day, the company held its 2025 Annual Meeting of Shareholders, where all board candidates were elected, Baker Tilly US, LLP was ratified as the independent auditor, executive compensation was approved, and the 2016 Equity Incentive Plan was extended by ten years.