Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $130.36M
• Dividend Yield: N/A
• Average Volume (3M): 29.60K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.06
• 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: 1.02
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 7.65
• 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: $41.00 ▲(11.53% 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

Strong TTM profitability

Sustained TTM operating and net margins indicate durable pricing power and effective cost control across medical and industrial product lines. Higher margins support reinvestment and returns, improve resilience to input-cost shocks, and underpin longer-term ROE and free cash flow potential.

Multi-year customer contract extension

A three-year extension with minimum purchase volumes materially raises revenue visibility and reduces near-term customer concentration risk. This supports planning, capacity utilization, and justified capital allocation, providing a stable demand base for the next 2–3 years and strengthening long-term customer ties.

Vertical integration via APM acquisition

Bringing a long-standing machining supplier in-house secures supply, adds manufacturing automation and tech, and can improve cost structure and lead times. Over months this enhances operational control, supports scale for medical/aerospace demand, and reduces outsource dependency risk.

Negative Factors

Inconsistent cash-flow conversion

Irregular operating and free cash flow driven by working-capital swings reduces internal funding reliability. That volatility complicates capital spending, debt servicing and shareholder returns planning, increasing reliance on external financing during troughs and adding structural financial risk.

Earnings volatility across years

Sharp year-to-year swings in margins indicate sensitivity to volumes, pricing or operating leverage. Persistent earnings volatility undermines predictability of cash generation and returns, complicates budgeting and may magnify downside in cyclical demand or pricing pressure environments.

Higher leverage and integration risk

Financing the acquisition with a sizable term loan raises near-term leverage and interest obligations. Combined with historical periods of higher leverage and the operational integration burden, this can strain liquidity, limit flexibility for opportunistic investments, and increase execution risk over quarters.

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

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: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 39.41, below the 50-day MA of 40.49, and below the 200-day MA of 39.70, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.14 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	$206.99M	18.55	9.59%	2.15%	-12.35%	-17.20%
PDEX	66 Neutral	$130.36M	11.46	30.92%	―	23.65%	120.84%
KRMD	59 Neutral	$217.72M	-58.12	-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.

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.

The most recent analyst rating on (PDEX) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Pro-Dex stock, see the PDEX Stock Forecast page.