Precision Optics Corporation (POCI) AI Stock Analysis

• Market Cap: $36.18M
• Dividend Yield: N/A
• Average Volume (3M): 22.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 13.67%
• EPS Growth: -37.01%
• Country: US
• Employees: 83
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.21
• Shares Outstanding: 7,714,701
• 10 Day Avg. Volume: 30,022
• 30 Day Avg. Volume: 22,992
• 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 Cap: 1.01
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 11.35
• Enterprise Value/Ebitda: -6.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $4.50 ▼(-1.32% Downside)

The overall stock score reflects significant revenue growth and strategic expansion, particularly in high-growth areas like aerospace and surgical robotics. However, profitability and cash flow challenges, along with a negative P/E ratio, weigh heavily on the score. Technical indicators are neutral, providing little directional insight.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful execution of strategic initiatives, enhancing long-term business prospects.

New Product Development

These agreements expand POCI's product offerings and market reach, positioning the company for sustained growth in the aerospace and defense sectors.

Strategic Partnerships

This partnership validates POCI's capabilities and enhances its reputation in the defense sector, potentially leading to more long-term contracts.

Negative Factors

Gross Margin Challenges

Decreasing gross margins indicate production inefficiencies, which could impact profitability if not addressed, posing a risk to financial health.

Net Loss

Continued net losses highlight financial instability and may limit the company's ability to invest in growth opportunities without strategic restructuring.

Cash Flow Issues

Negative cash flows suggest liquidity constraints, which could hinder operational flexibility and long-term sustainability if not improved.

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

POCI generates revenue primarily through the sale of its optical components and systems to clients in the medical, defense, and industrial sectors. The company employs a business model that includes direct sales to end-users, long-term contracts with government agencies, and partnerships with other technology firms for co-development projects. Key revenue streams include custom optical solutions tailored to specific client needs, standard optical components sold in bulk, and maintenance and support services for installed systems. Significant partnerships with major players in the medical and defense industries enhance POCI's market reach and contribute to stable earnings through recurring contracts and collaborative development projects.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4.56
• 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 POCI, the sentiment is Positive. The current price of 4.56 is above the 20-day moving average (MA) of 4.48, above the 50-day MA of 4.37, and above the 200-day MA of 4.50, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 50.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POCI.

Precision Optics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHUA	63 Neutral	$6.64M	38.76	5.90%	―	-4.99%	-19.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
POCI	51 Neutral	$36.18M	-5.52	-57.98%	―	13.67%	-37.01%
FEMY	48 Neutral	$53.80M	―	-376.23%	―	63.53%	12.49%
RVP	48 Neutral	$25.18M	-2.81	-8.05%	―	-0.95%	58.17%
MLSS	41 Neutral	$29.73M	-4.35	-136.47%	―	0.59%	-39.76%
NXGL	41 Neutral	$23.44M	-5.47	-58.34%	―	73.38%	34.87%

Precision Optics Corporation Corporate Events

Precision Optics Reports Revenue Growth Amid Net Loss

Precision Optics Corporation, Inc. is a company specializing in the development and manufacturing of advanced optical instruments, primarily serving the medical devices and defense/aerospace sectors. The company is known for its expertise in custom optical designs and manufacturing capabilities.

Precision Optics’ Earnings Call: Record Revenue Amid Challenges

Precision Optics Corporation, Inc. recently held its earnings call, revealing a mix of achievements and challenges. The company celebrated record-breaking revenue and secured significant contracts, yet faced hurdles with gross margins and production issues. Despite these obstacles, the sentiment remained optimistic, with positive projections for fiscal 2026.

Precision Optics Appoints New Chief Operating Officer

Precision Optics Corporation announced changes in its executive team, with Mr. Mahesh Lawande transitioning to an advisory role before his departure on October 31, 2025, and Mr. Joseph Traut being appointed as the new Chief Operating Officer effective October 1, 2025. These leadership changes are part of the company’s strategic realignment, with Mr. Traut bringing extensive experience in operations and manufacturing to his new role, potentially impacting the company’s operational efficiency and market positioning.

The most recent analyst rating on (POCI) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Precision Optics Corporation stock, see the POCI Stock Forecast page.

Precision Optics Corporation Faces Financial Risks Amid Potential U.S. Tariff Changes

Precision Optics Corporation, Inc. faces significant risks due to potential changes in U.S. tariff policies and related trade actions. These changes could disrupt their international supply chain, increase costs, and weaken their competitive position. The reliance on overseas suppliers for specialized optical components makes them vulnerable to new tariffs or trade restrictions, particularly from countries like China. Such developments could lead to higher prices, reduced demand, and operational inefficiencies, ultimately impacting their financial condition and market share.

Precision Optics Corporation Reports Strategic Growth and Innovation

Precision Optics Corporation, Inc. is a Massachusetts-based company specializing in the development and manufacturing of advanced optical instruments, primarily serving the medical devices and defense/aerospace sectors. The company is known for its proprietary optical and imaging technology, which includes the production of endoscopes, micro medical cameras, and other custom imaging products.