Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $122.23M
• Dividend Yield: N/A
• Average Volume (3M): 44.07K
• Price to Earnings (P/E): 11.2
• 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): 1.40
• Shares Outstanding: 3,262,004
• 10 Day Avg. Volume: 31,765
• 30 Day Avg. Volume: 44,071
• 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: 0.96
• 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: 74 Outperform
• Price Target: $41.00 ▲(11.53% Upside)

Pro-Dex's overall stock score reflects strong financial performance and attractive valuation. The company's robust revenue growth and profitability are significant strengths, though cash flow challenges need attention. Technical indicators suggest short-term bullish momentum, but resistance may be encountered at higher levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Pro-Dex's products and services, supporting long-term business expansion and market presence.

Profitability

Strong profitability margins reflect efficient operations and cost management, ensuring sustainable earnings and competitive advantage in the industry.

Balance Sheet Health

A moderate leverage ratio indicates financial stability and flexibility, allowing Pro-Dex to invest in growth opportunities without excessive risk.

Negative Factors

Cash Flow Challenges

Negative operating cash flow suggests potential liquidity issues, which could impact Pro-Dex's ability to fund operations and growth initiatives.

Free Cash Flow Decline

A decline in free cash flow may limit Pro-Dex's capacity to reinvest in the business, affecting future growth and competitive positioning.

Cash Flow to Net Income Ratio

While the ratio indicates cash generation relative to income, the overall negative cash flow remains a concern for long-term financial health.

Pro-Dex Business Overview & Revenue Model

Company Description

Pro-Dex, Inc. (PDEX) is a leading manufacturer of precision engineered products and systems, primarily serving the medical device, dental, and industrial automation sectors. The company specializes in developing and producing advanced motion control and power solutions, including servo motors, drives, and other components that enhance the performance of medical instruments and equipment. Pro-Dex's core offerings also include contract manufacturing services, which provide tailored solutions to meet the specific needs of its clients across various industries.

How the Company Makes Money

Pro-Dex generates revenue through multiple key streams. The primary source is the sale of its proprietary products, including precision systems and components for medical devices and automation applications. The company also earns income from its contract manufacturing services, where it produces custom products for clients, thus diversifying its revenue base. Additionally, Pro-Dex benefits from partnerships with original equipment manufacturers (OEMs) and other businesses in the healthcare and industrial sectors, enabling it to leverage its technology and expertise. The company's focus on high-quality, innovative solutions, along with a growing demand in the medical and automation markets, plays a crucial role in driving its earnings.

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

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 above the 20-day moving average (MA) of 33.15, above the 50-day MA of 31.82, and below the 200-day MA of 42.18, indicating a neutral trend. The MACD of 1.37 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, 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
PDEX	74 Outperform	$122.23M	11.18	30.92%	―	23.65%	120.84%
UTMD	63 Neutral	$176.71M	15.61	9.59%	2.09%	-12.35%	-17.20%
KRMD	59 Neutral	$178.47M	-39.27	-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 Reports Strong Earnings Growth in Q3 2025

Pro-Dex, Inc. is a company specializing in the design, development, and manufacture of surgical drivers and shavers primarily used in the orthopedic, thoracic, and maxocranial facial markets, with additional services in engineering, quality, and regulatory consulting. In its latest earnings report for the quarter ended September 30, 2025, Pro-Dex reported significant growth in net income and sales, driven by strong performance in its core markets. The company achieved net sales of $18.53 million, a notable increase from $14.89 million in the same period last year, with a net income of $4.68 million, nearly doubling from $2.47 million the previous year. Key financial highlights include a substantial increase in investments and a notable unrealized gain on investments, contributing to a strong financial position with total assets rising to $64.3 million from $61.2 million. The company continues to maintain a robust balance sheet with increased shareholder equity and reduced liabilities, positioning it well for future growth. Looking forward, Pro-Dex’s management remains optimistic about continued growth, supported by its strategic investments and strong market demand for its innovative medical device solutions.

Pro-dex Faces Financial Strain Amid Rising U.S. Tariffs and Global Trade Uncertainty

Pro-dex faces significant business risks due to the recent increase in tariffs imposed by the United States government on imported goods, which began in the first quarter of 2025. These tariffs, along with reciprocal actions from other countries, are likely to increase the costs of raw materials and components sourced through Pro-dex’s complex supply chain. The unpredictability of tariff rates and the potential inability to pass these costs onto customers or find alternative suppliers could adversely affect Pro-dex’s financial condition and operational results. The ongoing uncertainty in international trade policies further exacerbates the risk, potentially impacting Pro-dex’s business and liquidity in the long term.

Pro-Dex Reports Strong Fiscal 2025 Results Amid Challenges

Pro-Dex, Inc. is a company specializing in the design, development, and manufacture of autoclavable, battery-powered, and electric multi-function surgical drivers and shavers primarily used in the orthopedic, thoracic, and maxocranial facial markets. The company is known for its patented adaptive torque-limiting software and proprietary sealing solutions, catering mainly to medical device distributors.

Pro-Dex Awards Executive Bonuses Amid Strong Performance

On August 14, 2025, Pro-Dex‘s Compensation Committee approved discretionary cash bonuses for its executives. CEO Richard L. Van Kirk received a $70,000 bonus due to the company’s sales growth and financial performance surpassing expectations, while CFO Alisha K. Charlton was awarded a $50,000 bonus. These bonuses are set to be paid on August 21, 2025.

The most recent analyst rating on (PDEX) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Pro-Dex stock, see the PDEX Stock Forecast page.