Precision Optics Corporation (POCI) AI Stock Analysis

• Market Cap: $35.11M
• Dividend Yield: N/A
• Average Volume (3M): 24.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -9.20%
• EPS Growth: -232.02%
• Country: US
• Employees: 83
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.30
• Shares Outstanding: 7,666,247
• 10 Day Avg. Volume: 17,228
• 30 Day Avg. Volume: 24,967
• PEG Ratio: 0.14
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.36
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 9.03
• Enterprise Value/Ebitda: -2.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $4.50 ▼(-1.75%Downside)

Precision Optics Corporation's overall score reflects significant challenges in financial performance and valuation. However, strategic moves and potential future growth opportunities, particularly in aerospace and new product launches, provide some optimism. Technical indicators show a neutral to slightly positive short-term outlook.

Precision Optics Corporation Business Overview & Revenue Model

Company Description

Precision Optics Corporation, Inc. designs, develops, manufactures, and sells specialized optical and illumination systems and related components primarily in the United States and the European Economic Area. It offers medical instrumentation products, including endoscopes and endocouplers, as well as other custom imaging and illumination products, such as Microprecision lenses and micro medical cameras, and 3D endoscopes for use in minimally invasive surgical procedures by hospitals and physicians. The company also provides components and assemblies for industrial and military use. It markets its products to medical device companies. The company was incorporated in 1982 and is based in Gardner, Massachusetts.

How the Company Makes Money

Precision Optics Corporation generates revenue through the sale of its highly specialized optical components and systems. The company's primary revenue streams include direct sales of medical endoscopes, micro-optical components, and custom optical assemblies to clients in the medical, defense, and industrial sectors. The company also engages in research and development partnerships, collaborating with other firms and institutions to innovate and develop new optical technologies. Additionally, Precision Optics may earn revenue through licensing agreements and intellectual property rights related to its proprietary technologies.

Precision Optics Corporation Financial Statement Overview

Summary

Precision Optics Corporation faces challenges in revenue growth and profitability, with declining revenues, negative net profit margins, and negative cash flows. However, the balance sheet shows improved equity and lower leverage, offering some stability. The company needs to improve operational efficiency and cash generation to enhance financial health.

Income Statement

Precision Optics Corporation has shown declining revenues with a significant drop from $21M in 2023 to $17.6M TTM. Gross profit margin decreased to 20.6% TTM, indicating pressure on cost management. Net profit margin remains negative, highlighting ongoing losses. The company struggles with negative EBIT and EBITDA margins, emphasizing operational inefficiencies.

Balance Sheet

The balance sheet reveals a strengthened equity position with stockholders' equity rising to $13.1M TTM. The debt-to-equity ratio improved to 0.05, reflecting lower leverage. The equity ratio of 67% TTM suggests a stable financial structure. However, the increase in liabilities is a concern, and the negative ROE indicates unprofitable utilization of equity.

Cash Flow

Operating cash flow is negative at -$3.95M TTM, and free cash flow remains negative, signaling cash generation issues. However, financing cash flow increased, suggesting reliance on external funding. The operating cash flow to net income ratio is not favorable due to consistent net losses.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
17.63M	19.10M	21.04M	15.68M	10.67M	9.92M
	Gross Profit
3.63M	5.80M	7.73M	4.93M	3.43M	3.36M
	EBIT
-5.55M	-2.72M	-638.55K	-1.35M	-905.58K	-1.42M
	EBITDA
-5.40M	-2.51M	-427.81K	-526.57K	50.18K	-1.31M
	Net Income Common Stockholders
-5.79M	-2.95M	-144.61K	-928.42K	-102.83K	-1.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.55M	405.28K	2.93M	605.75K	861.65K	1.13M
	Total Assets
19.62M	16.91M	19.74M	16.70M	6.26M	6.35M
	Total Debt
669.72K	3.43M	3.16M	3.00M	251.99K	1.01M
	Net Debt
-1.88M	3.03M	233.51K	2.39M	-609.66K	-119.76K
	Total Liabilities
6.44M	6.84M	7.69M	7.73M	2.83M	3.58M
	Stockholders Equity
13.18M	10.07M	12.05M	8.97M	3.43M	2.77M
Cash Flow		Free Cash Flow
-4.15M	-2.98M	-133.59K	-1.09M	-75.85K	-752.78K
	Operating Cash Flow
-3.95M	-2.68M	-81.09K	-933.37K	46.55K	-592.49K
	Investing Cash Flow
-161.64K	-293.88K	-52.50K	-407.80K	-289.06K	-1.60M
	Financing Cash Flow
5.74M	456.32K	2.45M	1.09M	-30.53K	1.04M

Precision Optics Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Neutral. The current price of 4.58 is above the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.38, and below the 200-day MA of 4.73, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for POCI.

Precision Optics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEPH	63 Neutral	$36.09M	50.07	9.17%	―	10.34%	―
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
POCI	53 Neutral	$35.11M	―	-47.37%	―	-9.20%	-232.02%
HBIO	50 Neutral	$22.51M	―	-138.80%	―	-14.41%	-549.88%
NXGL	49 Neutral	$26.32M	―	-62.82%	―	115.94%	17.42%
RVP	46 Neutral	$19.85M	―	-25.89%	―	-16.05%	-195.28%
FEMY	40 Underperform	$26.24M	―	-239.87%	―	61.97%	-6.89%

Precision Optics Corporation Corporate Events

Precision Optics Signs New Lease Agreement

On June 2, 2025, Precision Optics Corporation entered into a lease agreement for approximately 19,590 square feet of commercial space in Littleton, Massachusetts. The lease, which has an initial term of 7.5 years starting around August 1, 2025, includes options for two additional five-year extensions. The company will benefit from a six-month rent abatement and has a right of first offer on adjacent space. The landlord is responsible for tenant improvements, with penalties for delays, and the company can terminate the lease if occupancy is not granted by January 1, 2026.

Precision Optics Holds Annual Stockholders Meeting

On May 20, 2025, Precision Optics Corporation held its annual meeting of stockholders, where key proposals were voted upon. The meeting resulted in the election of directors, approval of executive compensation, and ratification of the appointment of Stowe & Degon, LLC as the independent registered public accounting firm for the fiscal year ending June 30, 2025.

Precision Optics Signs New Lease Agreement in Maine

On May 14, 2025, Precision Optics Corporation entered a lease agreement for 8,750 square feet of commercial space in South Portland, Maine, with an anticipated commencement date of August 1, 2025. The lease includes an initial term of eight years with options to extend, and features such as abated rent for the first five months, annual rent increases, and a tenant improvement allowance, indicating a strategic move to enhance operational capacity.

Precision Optics Signs Lease Extension with Texzona

On May 13, 2025, Precision Optics Corporation entered into a First Lease Extension Agreement with Texzona Industries, Inc. to continue leasing approximately 9,375 square feet of commercial space in El Paso, Texas. The lease extension, commencing on June 1, 2025, and ending on May 31, 2028, includes annual base rents of $49,219, $50,695, and $52,216, with additional responsibilities for taxes, insurance, and common area maintenance, resulting in an estimated monthly payment of $5,773.

Precision Optics Appoints New Board Member Pellegrino

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.