Education
About Us
Working with TipRanks
Follow Us
Precision Optics Corporation (POCI)
NASDAQ:POCI
Top Page
Precision Optics Corporation
(NASDAQ:POCI)
Select Model
Select Model
Rating:52Neutral
Price Target:
$4.50
▲(6.89% Upside)
Precision Optics Corporation's overall stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow issues. Despite strong revenue growth and strategic expansion highlighted in the earnings call, the company's valuation remains unattractive due to negative earnings. Technical indicators suggest a neutral market sentiment, with no significant bullish or bearish signals.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective strategic expansion, enhancing the company's market position and potential for future profitability.
New Product Development
These agreements expand POCI's product offerings and market reach, particularly in aerospace and defense, supporting long-term growth and diversification.
Aerospace Program Growth
The substantial growth in aerospace revenue underscores POCI's competitive advantage and strong positioning in a high-demand sector, bolstering future revenue streams.
Negative Factors
Gross Margin Challenges
Declining gross margins highlight operational inefficiencies and cost management issues, which could impact profitability and require strategic adjustments to sustain growth.
Net Loss
Continued net losses indicate ongoing profitability challenges, potentially affecting financial stability and necessitating improvements in cost control and revenue generation.
Cash Flow Issues
Persistent cash flow challenges could constrain POCI's ability to invest in growth opportunities and maintain operational liquidity, impacting long-term financial health.
Precision Optics Corporation (POCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.94M
Dividend YieldN/A
Average Volume (3M)22.99K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth13.67%
EPS Growth-37.01%
CountryUS
Employees83
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.21
Shares Outstanding7,714,701
10 Day Avg. Volume30,022
30 Day Avg. Volume22,992
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)2.71
Price to Sales (P/S)1.74
P/FCF Ratio-8.82
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit11.35
Enterprise Value/Ebitda-6.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Precision Optics Corporation Business Overview & Revenue Model
Company DescriptionPrecision 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 MoneyPOCI generates revenue primarily through the sale of its optical products and services. Key revenue streams include custom optical component manufacturing, which caters to specialized requirements from sectors like defense and healthcare, and standard optical products sold to various industrial clients. The company also benefits from long-term contracts with government agencies and partnerships with major defense contractors, ensuring a steady flow of income. Additionally, POCI invests in research and development to innovate its product offerings, which helps in capturing new market opportunities and enhancing profitability.
Precision Optics Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which parts of the company are driving growth and profitability, and where there might be challenges or opportunities for expansion.
Breaks down revenue by different business segments, highlighting which parts of the company are driving growth and profitability, and where there might be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyPrecision Optics Corporation Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented significant revenue growth and new development agreements, indicating strong market demand and strategic expansion. However, challenges with gross margins and a net loss slightly offset the positive momentum. The company is optimistic about future profitability and growth.Q1-2026 Updates
Positive Updates
Record Quarterly Revenue
Precision Optics reported record quarterly revenue of $6.7 million in Q1 fiscal 2026, representing a 46% increase compared to the same quarter a year ago after adjusting for tariff reimbursements.
Aerospace Program Growth
Revenue from the aerospace program reached $2.5 million, net of tariffs, marking an increase of more than 800% compared to a year ago, with a backlog of over $9 million.
Cystoscope Program Expansion
Revenue from the single-use cystoscope program was $1.5 million, net of tariff reimbursements, an 85% increase compared to the previous quarter and a 180% year-over-year increase.
New Product Development Agreements
Signed two new large development agreements for augmented reality systems for defense and a high-resolution borescope for jet engine inspection, totaling approximately $1.4 million.
Ross Optical Division Growth
Ross Optical division saw a 10% quarter-over-quarter revenue increase, indicating a potential recovery in the optical components market.
Negative Updates
Gross Margin Challenges
Gross margins were 14.4%, a decrease from 26.6% in the same quarter a year ago, due to the aggressive ramp of production operations and under-absorption of engineering resources.
Net Loss
Reported a net loss of $1.6 million for the quarter compared to $1.3 million in the year-ago first quarter.
Delayed Defense Reorder
Delay in receiving a reorder from a large defense customer, impacting the Micro-optics division's revenue.
Company Guidance
During the Precision Optics Q1 2026 earnings call, the company reported record quarterly revenue of $6.7 million, marking a 46% increase from the same quarter last year when excluding tariff reimbursements. This growth was primarily driven by two significant manufacturing programs: one in aerospace, which contributed $2.5 million net of tariffs—an 800% increase year-over-year—and another in surgical robotics with a single-use cystoscope, delivering $1.5 million net of tariffs, an 85% increase from the previous quarter and a 180% increase year-over-year. Despite a gross margin of 14.4%, impacted by production scaling challenges, the company anticipates improvements as efficiencies are realized. Precision Optics remains optimistic about fiscal year 2026, projecting revenue over $25 million and approximately $0.5 million in positive adjusted EBITDA. The company also recorded a significant uptick in Ross Optical division revenue and announced two new development programs in augmented reality systems and high-resolution borescopes, enhancing their presence in the aerospace and defense sectors.Precision Optics Corporation Financial Statement Overview
Summary
Precision Optics Corporation shows revenue growth but faces significant profitability and cash flow challenges. The balance sheet is stable with low leverage, but the company struggles to convert sales into profits and cash.Income Statement
Precision Optics Corporation shows a mixed performance in its income statement. The company has experienced a revenue growth rate of 13.01% in the TTM period, indicating positive sales momentum. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has decreased over time, suggesting pressure on cost management.45
Neutral
Balance Sheet
The balance sheet of Precision Optics Corporation shows moderate financial stability. The debt-to-equity ratio is relatively low at 0.166, indicating a conservative leverage position. However, the company has a negative return on equity, highlighting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets.50
Neutral
Cash Flow
Cash flow analysis reveals challenges in cash generation. The company has negative operating and free cash flows, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Despite this, the free cash flow to net income ratio suggests some alignment between cash flow and reported earnings.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.58M | 19.09M | 19.10M | 21.04M | 15.68M | 10.67M |
| Gross Profit | 3.23M | 3.40M | 5.80M | 7.73M | 4.93M | 3.43M |
| EBITDA | -5.67M | -5.34M | -2.51M | 286.99K | -526.57K | 50.18K |
| Net Income | -6.11M | -5.78M | -2.95M | -144.61K | -928.42K | -102.83K |
Balance Sheet | ||||||
| Total Assets | 22.38M | 19.79M | 16.91M | 19.74M | 16.70M | 6.26M |
| Cash, Cash Equivalents and Short-Term Investments | 1.39M | 1.77M | 405.28K | 2.93M | 605.75K | 861.65K |
| Total Debt | 3.38M | 2.04M | 3.43M | 3.16M | 3.00M | 251.99K |
| Total Liabilities | 11.46M | 7.53M | 6.84M | 7.69M | 7.73M | 2.83M |
| Stockholders Equity | 10.92M | 12.26M | 10.07M | 12.05M | 8.97M | 3.43M |
Cash Flow | ||||||
| Free Cash Flow | -3.66M | -3.77M | -2.98M | -133.59K | -1.09M | -75.85K |
| Operating Cash Flow | -3.15M | -3.55M | -2.68M | -81.09K | -933.37K | 46.55K |
| Investing Cash Flow | -507.16K | -233.47K | -293.88K | -52.50K | -407.80K | -289.06K |
| Financing Cash Flow | 4.41M | 5.15M | 456.32K | 2.45M | 1.09M | -30.53K |
Precision Optics Corporation Technical Analysis
Positive
4.21
Price Trends
4.33
Positive
4.36
Positive
4.45
Negative
Market Momentum
0.01
Negative
59.39
Neutral
87.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POCI, the sentiment is Positive. The current price of 4.21 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 4.33, and below the 200-day MA of 4.45, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 87.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $33.94M | -5.17 | -57.98% | ― | 13.67% | -37.01% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $17.27M | -4.26 | -58.34% | ― | 73.38% | 34.87% | |
48 Neutral | $21.73M | -3.26 | -8.05% | ― | -0.95% | 58.17% | |
42 Neutral | $22.54M | -3.46 | -136.47% | ― | 0.59% | -39.76% | |
41 Neutral | $38.71M | -0.90 | -376.23% | ― | 63.53% | 12.49% |
* Healthcare Sector Average
POCI
Precision Optics Corporation
4.40
-0.63
-12.52%
RVP
Retractable Technologies
0.73
-0.08
-10.26%
MLSS
Milestone Scientific
0.29
-0.98
-77.48%
FEMY
Femasys
0.65
-0.54
-45.38%
NXGL
NexGel Inc
1.61
-1.76
-52.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.