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Precision Optics Corporation (POCI)
NASDAQ:POCI
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Precision Optics Corporation
(NASDAQ:POCI)
46Neutral
Precision Optics Corporation (POCI) vs. S&P 500 (SPY)
Market Cap
$29.79M
Dividend YieldN/A
Average Volume (3M)14.83K
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth-2.78%
EPS Growth-124.17%
CountryUS
Employees83
SectorHealthcare
Sector Strength62
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.65
Shares Outstanding7,637,379
10 Day Avg. Volume12,826
30 Day Avg. Volume14,832
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.61
Price to Cash Flow (P/CF)-9.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Precision Optics Corporation Business Overview & Revenue Model
Company DescriptionPrecision Optics Corporation (POCI) is a technology company specializing in the design, development, and manufacture of advanced optical components and systems. The company operates primarily within the medical, defense, and industrial sectors, providing high-quality products that meet the demanding specifications of these industries. POCI's core offerings include micro-optics, optical assemblies, and endoscopic visualization systems, which are used in a variety of applications, such as minimally invasive surgery, military imaging, and industrial inspection.
How the Company Makes MoneyPrecision Optics Corporation generates revenue through the sale of its specialized optical products and systems to clients in the medical, defense, and industrial sectors. The company earns money by manufacturing and selling micro-optics and optical systems that are often customized to meet the specific needs of its clients. Additionally, POCI engages in collaborative partnerships and contracts with companies and organizations that require precision optical solutions. These partnerships can include long-term supply agreements or joint development projects, enabling POCI to secure a stable revenue stream while expanding its technological capabilities.
Precision Optics Corporation Financial Statement Overview
Summary
Precision Optics Corporation faces financial difficulties with declining revenues and profitability, increased leverage, and negative cash flows. The company needs to focus on improving operational efficiency and financial health to ensure long-term sustainability. Despite manageable debt levels, the negative cash flow and profitability metrics pose significant risks to its financial stability.Income Statement
Precision Optics Corporation has faced declining revenue growth with unstable profit margins. The TTM shows a decrease in revenue compared to previous years, and significant negative EBIT and EBITDA margins indicate operational challenges. The net profit margin remains negative, highlighting continued losses.45
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio, suggesting manageable leverage. However, the equity ratio reflects a declining trend in stockholders' equity relative to total assets, which could impact financial stability. The return on equity is negative, as net losses continue to affect shareholder returns.60
Neutral
Cash Flow
Free cash flow is negative and worsening, indicating liquidity challenges. The operating cash flow remains significantly negative, and the free cash flow to net income ratio suggests inefficiency in converting earnings to cash. Financing activities provide some relief but are not sufficient to cover operational cash shortfalls.40
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 18.68M | 19.10M | 21.04M | 15.68M | 10.67M | 9.92M | Gross Profit |
| 5.07M | 5.80M | 7.73M | 4.93M | 3.43M | 3.36M | EBIT |
| -3.77M | -2.72M | -638.55K | -1.35M | -905.58K | -1.42M | EBITDA |
| -3.62M | -2.51M | -427.81K | -526.57K | 50.18K | -1.31M | Net Income Common Stockholders |
| -4.01M | -2.95M | -144.61K | -928.42K | -102.83K | -1.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 201.90K | 405.28K | 2.93M | 605.75K | 861.65K | 1.13M | Total Assets |
| 2.09M | 16.91M | 19.74M | 16.70M | 6.26M | 6.35M | Total Debt |
| 25.71K | 3.43M | 3.16M | 3.00M | 251.99K | 1.01M | Net Debt |
| -176.18K | 3.03M | 233.51K | 2.39M | -609.66K | -119.76K | Total Liabilities |
| 1.61M | 6.84M | 7.69M | 7.73M | 2.83M | 3.58M | Stockholders Equity |
| 485.70K | 10.07M | 12.05M | 8.97M | 3.43M | 2.77M |
| Cash Flow | Free Cash Flow | ||||
| -2.82M | -2.98M | -133.59K | -1.09M | -75.85K | -752.78K | Operating Cash Flow |
| -2.61M | -2.68M | -81.09K | -933.37K | 46.55K | -592.49K | Investing Cash Flow |
| -211.29K | -293.88K | -52.50K | -407.80K | -289.06K | -1.60M | Financing Cash Flow |
| 1.70M | 456.32K | 2.45M | 1.09M | -30.53K | 1.04M |
Precision Optics Corporation Technical Analysis
Negative
4.05
Price Trends
4.67
Negative
4.83
Negative
5.10
Negative
Market Momentum
-0.14
Positive
32.90
Neutral
7.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Negative. The current price of 4.05 is below the 20-day moving average (MA) of 4.45, below the 50-day MA of 4.67, and below the 200-day MA of 5.10, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POCI.
Precision Optics Corporation Risk Analysis
Precision Optics Corporation disclosed 32 risk factors in its most recent earnings report. Precision Optics Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Precision Optics Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $152.45M | ― | -169.61% | ― | 0.60% | -115.20% | |
49 Neutral | $16.63M | ― | -153.37% | ― | -6.17% | 8.27% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $29.79M | ― | -38.56% | ― | -2.78% | -124.17% | |
45 Neutral | $171.07M | ― | -54.98% | ― | 92.38% | 12.79% |
* Healthcare Sector Average
Performance Comparison
POCI
Precision Optics Corporation
4.03
-1.66
-29.17%
IRIX
Iridex
0.95
-1.98
-67.58%
KOPN
Kopin
0.96
-0.66
-40.74%
TSE:ZEN
Zentek
1.60
0.05
3.23%
Precision Optics Corporation Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -18.84% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of positive and negative aspects. While there is significant optimism about future growth driven by successful product launches, strong backlogs, and strategic initiatives, the current financial performance indicates revenue and margin challenges. The company is facing increased losses and liquidity concerns but is optimistic about overcoming these hurdles with its strong pipeline and anticipated revenue increases.Highlights
Strong Production Growth
Production increased by 42% from Q1 to Q2, driven by key programs in single-use cystoscope and defense aerospace.
Launch of Unity Imaging Platform
The Unity imaging platform was launched, aiming to accelerate the development and reduce risks in CMOS-based endoscopic systems.
Record Production Revenue Forecast
Forecasted revenue for Q4 is approximately $6 million, which would be a quarterly record for Precision Optics.
Strong Backlog and Future Demand
Substantial backlogs for major programs, indicating strong future demand and anticipated continued growth.
Defense and Aerospace Program Success
Successful defense aerospace program with a production capacity increase aiming for a $3 million to $4 million annual run rate.
Lowlights
Decrease in Revenue and Gross Margins
Revenue for Q2 was $4.5 million, down from $4.8 million a year ago, with gross margins decreasing from 30% to 24%.
Higher R&D Costs and Lower Product Development Revenue
Increased R&D spending with lower product development revenue due to the focus on Unity platform preparation.
Net Loss Increase
Net loss for the quarter was $910,000, compared to a $704,000 net loss in the previous year.
Cash and Credit Line Concerns
Cash balance was approximately $200,000 with only $350,000 available on the line of credit, indicating potential liquidity concerns.
Company Guidance
During the Precision Optics Second Quarter Fiscal Year 2025 Results Conference Call, several key metrics and projections were discussed. The company reported a revenue of $4.5 million for the quarter ending December 31, 2024, slightly below their anticipated $5 million. Despite this, there was a notable 42% quarter-over-quarter increase in manufacturing revenue. Gross margins for the quarter stood at 24%, down from 30% the previous year, largely due to increased R&D spending, which rose to $318,000 from $222,000 in the prior year. The company anticipates reaching $5 million in revenue for the third quarter and a record $6 million in the fourth quarter, which would result in positive quarterly adjusted EBITDA. Precision Optics' backlog is at its largest in recent history, driven by strong demand in single-use cystoscope and defense aerospace programs. The company is forecasting sequential quarterly revenue increases and expects adjusted EBITDA break-even at approximately $5.5 million in quarterly revenue.Precision Optics Corporation Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Precision Optics Appoints New Board Member Pellegrino
Positive
Mar 20, 2025
On March 15, 2025, Peter Anania retired from the Board of Directors of Precision Optics Corporation, and on March 19, 2025, Joseph P. Pellegrino, Jr. was appointed to fill the vacancy. Pellegrino, who brings extensive experience from his previous role as CFO of LeMaitre Vascular, Inc., will also serve as Chair of the Audit Committee. The Board also announced stock options and compensation updates for its directors and executives, including an increase in CEO Joseph Forkey’s salary. These changes are part of the company’s strategy to enhance its leadership team and drive sustainable growth.
Executive/Board ChangesBusiness Operations and Strategy
Precision Optics Welcomes Buell Duncan to Board
Positive
Mar 4, 2025
On February 28, 2025, Precision Optics Corporation appointed Buell Duncan to its Board of Directors following the retirement of Dr. Richard Miles. Mr. Duncan, with a rich background in technology and business, notably from his tenure at IBM, is expected to bring valuable leadership and strategic expertise to the company. This change is anticipated to bolster Precision Optics’ commitment to innovation and growth, as the company seeks to capitalize on significant market opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.