Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $150.63M
• Dividend Yield: N/A
• Average Volume (3M): 61.73K
• Price to Earnings (P/E): 16.5
• Beta (1Y): -0.09
• Revenue Growth: 29.65%
• EPS Growth: 131.78%
• Country: US
• Employees: 146
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.98
• Shares Outstanding: 3,261,043
• 10 Day Avg. Volume: 57,385
• 30 Day Avg. Volume: 61,729
• PEG Ratio: 0.40
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.33
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $56.00
• Price Target Upside: 21.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $53.00 ▲(14.74%Upside)

Pro-Dex's strong financial performance, marked by robust revenue growth and stable profitability, is the primary driver of its stock score. Technical indicators show a positive momentum, although caution is advised due to potential overbought conditions. Valuation is reasonable, but the lack of a dividend yield may deter income-seeking investors.

Positive Factors

Analyst Confidence

Analyst maintains a BUY rating and raises the 12-month price target to $52, reflecting confidence in the company’s strong growth potential.

Product Diversification

Pro-Dex is diversifying its customer base and product lines by developing new devices, which is seen as a positive move.

Revenue Growth

Pro-Dex reported fiscal Q2 2025 revenue of $16.8 million, a 33% increase year-over-year, exceeding estimates.

Negative Factors

Operational Challenges

The company experienced a large jump in backlog, with Q1 backlog rising to $57 million from $20 million in the previous quarter.

Pro-Dex Business Overview & Revenue Model

Company Description

Pro-Dex, Inc. designs, develops, and manufactures powered surgical instruments for medical device original equipment manufacturers worldwide. The company offers autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers that are primarily used in the orthopedic, thoracic, and craniomaxillofacial markets. It also provides engineering, quality, and regulatory consulting services; and manufactures and sells rotary air motors to various industries. The company was founded in 1978 and is headquartered in Irvine, California.

How the Company Makes Money

Pro-Dex generates revenue through the sale of its precision medical devices and related products. The company primarily earns money by providing custom and standard products to original equipment manufacturers (OEMs) in the medical device industry. Pro-Dex's revenue streams include direct sales of powered surgical tools and other precision devices used in surgeries. Additionally, the company may engage in engineering services and manufacturing agreements with key partners, contributing to its revenue. The firm's focus on high-quality, specialized medical equipment allows it to maintain relationships with significant players in the healthcare sector, bolstering its earnings.

Pro-Dex Financial Statement Overview

Summary

Pro-Dex demonstrates strong revenue growth and stable profitability, benefiting from improved operational efficiencies. The balance sheet reflects sound financial health with manageable leverage. However, recent cash flow challenges suggest the need for improved cash management strategies.

Income Statement

Pro-Dex has shown robust revenue growth over the years, with a significant increase from $38.03M in 2021 to $64.12M in the TTM period. The gross profit margin and net profit margin have been stable, indicating efficient cost management and profitability. The EBIT margin has improved, suggesting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. The equity ratio has remained relatively strong, reflecting a solid financial structure. However, the total debt level remains a consideration for potential risks.

Cash Flow

There has been a decline in operating cash flow and free cash flow in the TTM period, suggesting cash management challenges. The free cash flow to net income ratio has also declined, indicating potential issues in converting earnings to cash. However, previous years showed positive cash flow trends.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	53.84M	46.09M	42.04M	38.03M	34.83M
Gross Profit	14.55M	12.75M	13.13M	13.57M	13.14M
EBITDA	4.35M	6.62M	5.97M	8.07M	8.75M
Net Income	2.13M	7.07M	4.57M	4.45M	6.11M
Balance Sheet
Total Assets	52.48M	51.82M	47.33M	40.32M	31.13M
Cash, Cash Equivalents and Short-Term Investments	6.85M	4.07M	1.60M	5.02M	8.98M
Total Debt	13.55M	14.79M	15.59M	15.20M	6.68M
Total Liabilities	21.61M	20.23M	23.66M	20.24M	12.06M
Stockholders Equity	30.87M	31.59M	23.67M	20.08M	19.06M
Cash Flow
Free Cash Flow	5.22M	4.49M	-2.52M	-10.38M	5.33M
Operating Cash Flow	6.20M	5.46M	-847.00K	-2.08M	5.90M
Investing Cash Flow	-2.23M	-885.00K	-1.24M	-3.71M	-3.24M
Financing Cash Flow	-4.27M	-2.49M	-790.00K	3.09M	-3.98M

Pro-Dex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 46.19 is above the 20-day moving average (MA) of 44.89, above the 50-day MA of 43.45, and above the 200-day MA of 43.82, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 57.40 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	74 Outperform	$180.34M	14.70	10.59%	2.20%	-19.92%	-16.22%
PDEX	71 Outperform	$150.63M	16.50	28.29%	―	29.65%	131.78%
INFU	71 Outperform	$114.94M	37.33	5.94%	―	7.98%	3304.55%
STXS	67 Neutral	$199.52M	―	-179.82%	―	1.50%	-20.00%
Sector *	65 Neutral	¥347.74B	11.06	-2.99%	2.56%	11.77%	-10.16%
OSUR	57 Neutral	$239.36M	25.27	-7.77%	―	-46.95%	-237.44%
SMTI	49 Neutral	$233.84M	―	-28.58%	―	34.65%	-128.56%

Pro-Dex Corporate Events

Pro-Dex Grants Restricted Shares to Key Executives

Pro-Dex, Inc. has granted restricted shares to its non-employee directors and select employees, including key executives like the CEO and CFO, under its 2016 Equity Incentive Plan. These shares will vest over five years, providing an incentive for continued employment and aligning interests with the company’s long-term growth. This move reflects a strategic approach to rewarding and retaining top talent within the company.