Precision Optics Corporation (POCI) AI Stock Analysis

• Market Cap: $37.56M
• Dividend Yield: N/A
• Average Volume (3M): 15.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -9.20%
• EPS Growth: -232.02%
• Country: US
• Employees: 83
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.30
• Shares Outstanding: 7,666,247
• 10 Day Avg. Volume: 9,362
• 30 Day Avg. Volume: 15,794
• PEG Ratio: 0.15
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.82
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: -2.33
• 1Y Price Target: $4.50
• Price Target Upside: -5.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: $5.00 ▲(5.26%Upside)

Precision Optics Corporation's stock score is primarily impacted by financial difficulties, including declining revenues and negative margins. However, positive technical indicators and strategic corporate events provide some optimism for future performance.

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 margins, and cash flow issues. The balance sheet shows improved equity and lower leverage, offering some stability.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	19.10M	21.04M	15.68M	10.67M	9.92M
Gross Profit	5.80M	7.73M	4.93M	3.43M	3.36M
EBITDA	-2.51M	286.99K	-526.57K	50.18K	-1.31M
Net Income	-2.95M	-144.61K	-928.42K	-102.83K	-1.43M
Balance Sheet
Total Assets	16.91M	19.74M	16.70M	6.26M	6.35M
Cash, Cash Equivalents and Short-Term Investments	405.28K	2.93M	605.75K	861.65K	1.13M
Total Debt	3.43M	3.16M	3.00M	251.99K	1.01M
Total Liabilities	6.84M	7.69M	7.73M	2.83M	3.58M
Stockholders Equity	10.07M	12.05M	8.97M	3.43M	2.77M
Cash Flow
Free Cash Flow	-2.98M	-133.59K	-1.09M	-75.85K	-752.78K
Operating Cash Flow	-2.68M	-81.09K	-933.37K	46.55K	-592.49K
Investing Cash Flow	-293.88K	-52.50K	-407.80K	-289.06K	-1.60M
Financing Cash Flow	456.32K	2.45M	1.09M	-30.53K	1.04M

Precision Optics Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.75 is below the 20-day moving average (MA) of 4.76, above the 50-day MA of 4.62, and above the 200-day MA of 4.66, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 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
NEPH	61 Neutral	$38.16M	50.07	9.17%	―	10.34%	―
NXGL	58 Neutral	$27.54M	―	-62.82%	―	115.94%	17.42%
POCI	56 Neutral	$37.56M	―	-47.37%	―	-9.20%	-232.02%
Sector *	52 Neutral	$7.52B	0.19	-63.81%	2.30%	16.15%	0.40%
RVP	51 Neutral	$20.06M	―	-25.89%	―	-16.05%	-195.28%
HBIO	49 Neutral	$19.66M	―	-138.80%	―	-14.41%	-549.88%
FEMY	44 Neutral	$30.57M	―	-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.