Precision Optics Corporation (POCI) AI Stock Analysis

• Market Cap: $32.63M
• Dividend Yield: N/A
• Average Volume (3M): 22.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• 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: 1.12
• 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: 52 Neutral
• Price Target: $4.50 ▲(7.14% 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 Business Overview & Revenue Model

Company Description

Precision Optics Corporation (POCI) is a leading provider of advanced optical technologies, specializing in the design and manufacture of precision optical components and systems for various industries, including defense, medical, and industrial markets. The company focuses on delivering high-quality optics solutions, such as lenses, mirrors, and optical assemblies, leveraging its expertise in engineering and manufacturing to meet the specific needs of its clientele.

How the Company Makes Money

POCI 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 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: Negative
• Last Price: 4.20
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 4.2 is below the 20-day moving average (MA) of 4.31, below the 50-day MA of 4.33, and below the 200-day MA of 4.47, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POCI.

Precision Optics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHUA	58 Neutral	$7.02M	40.95	5.90%	―	-4.99%	-19.10%
POCI	52 Neutral	$32.63M	-4.94	-57.98%	―	13.67%	-37.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
FEMY	49 Neutral	$46.54M	-1.11	-376.23%	―	63.53%	12.49%
RVP	46 Neutral	$24.55M	-3.68	-8.05%	―	-0.95%	58.17%
NXGL	43 Neutral	$16.84M	-4.12	-58.34%	―	73.38%	34.87%
MLSS	41 Neutral	$24.27M	-3.52	-136.47%	―	0.59%	-39.76%

Precision Optics Corporation Corporate Events

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.