Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $157.00M
• Dividend Yield: N/A
• Average Volume (3M): 29.60K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.03
• Revenue Growth: 23.65%
• EPS Growth: 120.84%
• Country: US
• Employees: 146
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.66
• Shares Outstanding: 3,205,985
• 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: 1.03
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 7.92
• Enterprise Value/Ebitda: 9.30
• 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: 66 Neutral
• Price Target: $54.00 ▲(46.90% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid recent profitability and improving leverage, but moderated by volatile cash-flow conversion and year-to-year swings in results. Technical signals remain weak (negative MACD and trading below key moving averages), while valuation appears reasonably supported by a low P/E. Recent corporate events are constructive (contract extension and acquisition) but add financing and integration risk.

Positive Factors

Multi-year contract extension boosts revenue visibility

A three-year extension with minimum purchase volumes materially improves multi-year revenue visibility, enabling better capacity planning, smoother production runs, and higher likelihood that development programs convert into sustained manufacturing revenue. This reduces short-term order risk and supports durable top-line stability.

Strong TTM profitability and margins

High operating and net margins on a TTM basis indicate effective cost control and favorable product mix, supporting internal cash generation and high ROE. Durable margins give the company flexibility to invest in manufacturing capacity and withstand volume fluctuations if management preserves pricing and operational efficiency.

Vertical integration via APM acquisition

Bringing a long-time supplier in-house strengthens supply-chain resilience, increases in-house machining capacity, and can reduce unit costs via automation. Vertical integration supports margin preservation, faster production ramp-ups for customer programs, and expands addressable markets (aerospace/defense) for sustained revenue growth.

Negative Factors

Volatile cash flow conversion

Inconsistent cash conversion—positive TTM yet a recent annual period of negative OCF/FCF and sharply negative FCF growth—signals working-capital swings and unpredictable cash generation. This makes funding capital needs, acquisitions, or debt servicing more reliant on external financing during down cycles.

Earnings volatility over recent years

Multi-year swings in margins and earnings (including a sharp net margin dip in FY2024) reveal sensitivity to volumes, pricing, and operating leverage. Such earnings volatility increases execution risk, complicates forecasting, and can hinder sustained reinvestment or strategic planning across business cycles.

Customer concentration risk

Reliance on a small number of OEM customers concentrates revenue risk: adverse changes in purchasing patterns or sourcing decisions by a major client would materially affect sales. Even with a contract extension, concentration limits pricing power and leaves growth dependent on a few relationships.

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 makes money primarily by providing contract design, development, and manufacturing services for medical device customers, with revenue recognized from the sale of finished powered surgical instruments, instrument systems, and related parts/subassemblies produced for those customers. Key revenue streams typically include: (1) manufacturing revenue from building and delivering surgical instrument products and assemblies under customer purchase orders or supply arrangements; (2) engineering and product development revenue from design, prototyping, and development work performed for customers (often preceding or supporting manufacturing programs); and (3) recurring aftermarket/ongoing production revenue tied to customers’ continuing demand for replacement parts, service parts, or ongoing instrument production over a product’s lifecycle. The company’s earnings are influenced by the scale and duration of customer programs, regulatory/quality requirements for medical device manufacturing, customer concentration (where a limited number of OEM customers may account for a large share of sales), and the successful transition of development projects into sustained production. Specific partnership details and customer names are not available in the provided context; null.

Pro-Dex Financial Statement Overview

Summary

Profitability is strong on a TTM basis (healthy net and operating margins) and leverage has improved, supporting strong recent ROE. The main drag is consistency: earnings have been volatile over recent years and cash flow quality is mixed, with a recent annual period showing negative operating/free cash flow and sharp FCF volatility.

Income Statement

TTM (Trailing-Twelve-Months) shows strong profitability with a healthy net margin (~15.9%) and solid operating earnings (~22.6% operating margin), indicating good cost control and mix. Revenue growth is positive in the latest period, and multi-year revenue has trended up. Offsetting this, profitability has been volatile over the last few years (net margin dipped sharply in FY2024 before rebounding), which suggests earnings sensitivity to volumes, pricing, or operating leverage.

Balance Sheet

Leverage looks manageable, with debt-to-equity improving to ~0.33 in TTM (Trailing-Twelve-Months) from ~0.45 the prior year, and equity building over time. Returns on equity are strong in TTM (~30.8%), reflecting the sharp profit rebound. The main watch-out is that leverage was materially higher earlier (above ~0.65 in FY2021–FY2022), so while the trend is favorable, the balance sheet has not been consistently low-debt across cycles.

Cash Flow

Cash generation is mixed. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive (~$6.5M and ~$6.1M), but the latest annual period showed negative operating and free cash flow, pointing to working-capital swings and less consistent cash conversion. Free cash flow growth is sharply negative in TTM, reinforcing the volatility despite the current positive run-rate.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	72.10M	66.59M	53.84M	46.09M	42.04M	42.04M
Gross Profit	20.40M	19.51M	14.55M	12.75M	13.13M	13.13M
EBITDA	17.37M	14.13M	4.35M	10.82M	6.88M	6.88M
Net Income	11.34M	8.98M	2.13M	7.07M	4.57M	4.57M
Balance Sheet
Total Assets	62.26M	61.19M	52.48M	51.82M	49.09M	49.09M
Cash, Cash Equivalents and Short-Term Investments	8.82M	7.16M	6.85M	4.07M	1.60M	1.60M
Total Debt	11.83M	16.58M	13.55M	14.79M	15.97M	15.97M
Total Liabilities	20.63M	24.56M	21.61M	20.23M	23.66M	23.66M
Stockholders Equity	41.63M	36.63M	30.87M	31.59M	25.43M	25.43M
Cash Flow
Free Cash Flow	6.12M	-2.93M	5.22M	4.49M	-2.52M	-2.52M
Operating Cash Flow	6.46M	-1.68M	6.20M	5.46M	-847.00K	-847.00K
Investing Cash Flow	9.51M	-238.00K	-2.23M	-885.00K	-1.24M	-1.24M
Financing Cash Flow	-8.08M	-292.00K	-4.27M	-2.49M	-790.00K	-790.00K

Pro-Dex Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDEX, the sentiment is Positive. The current price of 36.76 is below the 20-day moving average (MA) of 44.89, below the 50-day MA of 42.03, and below the 200-day MA of 39.91, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 71.40 is Negative, neither overbought nor oversold. The STOCH value of 70.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDEX.

Pro-Dex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTMD	71 Outperform	$206.32M	16.41	9.56%	2.15%	-12.35%	-17.20%
PDEX	66 Neutral	$157.00M	14.29	29.25%	―	23.65%	120.84%
KRMD	52 Neutral	$201.71M	-137.80	-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 Completes Acquisition of Advanced Precision Machining

On February 9, 2026, Pro-Dex, Inc. completed the acquisition of Advanced Precision Machining LLC, a Costa Mesa, California-based manufacturer of machined components that serves medical device, aerospace, defense, and U.S. Government customers, making APM a wholly owned subsidiary. The deal, valued at approximately $8.65 million and funded largely with a new $6.65 million term loan from UMB Bank plus a subordinated seller note, brings in-house a long-standing supplier that already produces several of Pro-Dex’s machined sub-assemblies.

As part of the transaction, Pro-Dex plans to operate APM independently, retain APM co-owner Sean McCaig as a consultant through 2026, and leverage APM’s automation and technology to streamline manufacturing and assembly in Irvine. The acquisition supports Pro-Dex’s expansion plans tied to an earlier contract extension with its largest customer, is expected to contribute to future revenue growth, and may lead to later reporting of consolidated financial results due to APM’s longer accounting close, while also positioning the company to sustain and grow APM’s aerospace, defense, and U.S. Government contracting business.

The most recent analyst rating on (PDEX) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on Pro-Dex stock, see the PDEX Stock Forecast page.

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.

The most recent analyst rating on (PDEX) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Pro-Dex stock, see the PDEX Stock Forecast page.