Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $113.97M
• Dividend Yield: N/A
• Average Volume (3M): 38.60K
• Price to Earnings (P/E): 12.9
• Beta (1Y): -0.20
• Revenue Growth: 23.68%
• EPS Growth: 341.25%
• Country: US
• Employees: 146
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.36
• Shares Outstanding: 3,261,979
• 10 Day Avg. Volume: 40,443
• 30 Day Avg. Volume: 38,601
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 7.98
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $40.00
• Price Target Upside: 14.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: $40.00 ▲(14.48% Upside)

Pro-Dex's overall stock score is primarily influenced by its strong financial performance and reasonable valuation. However, technical indicators suggest a bearish trend, which weighs down the score. The positive sentiment from recent corporate events provides some support, but liquidity concerns and the absence of a dividend yield are notable risks.

Positive Factors

Revenue Growth

Pro-Dex's consistent revenue growth indicates a strong market position and demand for its products, supporting long-term business expansion.

Profit Margins

Sustained healthy profit margins reflect efficient cost management and pricing power, contributing to long-term financial stability.

Executive Confidence

The awarding of executive bonuses signals management's confidence in the company's strategic direction and future prospects.

Negative Factors

Negative Cash Flow

Negative cash flow could impact liquidity and operational efficiency, posing a risk to sustaining growth and financial health.

Debt Levels

Rising debt levels may strain financial resources and limit flexibility, potentially affecting long-term strategic initiatives.

Gross Margin Decline

A declining gross margin suggests potential cost pressures, which could affect profitability if not managed effectively.

Pro-Dex Business Overview & Revenue Model

Company Description

Pro-Dex, Inc. designs, develops, and manufactures powered surgical instruments for medical device original equipment manufacturers worldwide. The company offers autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers that are primarily used in the orthopedic, thoracic, and craniomaxillofacial markets. It also provides engineering, quality, and regulatory consulting services; and manufactures and sells rotary air motors to various industries. The company was founded in 1978 and is headquartered in Irvine, California.

How the Company Makes Money

Pro-Dex generates revenue through multiple key streams. The primary source is the sale of its proprietary products, including precision systems and components for medical devices and automation applications. The company also earns income from its contract manufacturing services, where it produces custom products for clients, thus diversifying its revenue base. Additionally, Pro-Dex benefits from partnerships with original equipment manufacturers (OEMs) and other businesses in the healthcare and industrial sectors, enabling it to leverage its technology and expertise. The company's focus on high-quality, innovative solutions, along with a growing demand in the medical and automation markets, plays a crucial role in driving its earnings.

Pro-Dex Financial Statement Overview

Summary

Pro-Dex exhibits strong revenue growth and profitability, supported by a stable balance sheet. However, the negative cash flow in the latest period requires attention to ensure liquidity and operational efficiency. The company is well-positioned in its industry, but careful management of debt and cash flow will be crucial for sustaining its financial health.

Income Statement

Pro-Dex has demonstrated consistent revenue growth over the years, with a 3.85% increase in the latest period. The company maintains healthy profit margins, with a gross profit margin of 29.30% and a net profit margin of 13.48% in the most recent year. The EBIT and EBITDA margins are also strong, indicating efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.45. Return on equity is robust at 24.51%, indicating effective use of shareholder funds. The equity ratio is solid, suggesting a strong capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Pro-Dex's cash flow situation presents some challenges, with negative operating and free cash flows in the latest period. Despite this, the company has shown significant improvement in free cash flow growth. The free cash flow to net income ratio is high, indicating that the company is generating cash relative to its net income, but the negative operating cash flow coverage ratio highlights potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	66.59M	66.59M	53.84M	46.09M	42.04M	38.03M
Gross Profit	19.51M	19.51M	14.55M	12.75M	13.13M	13.57M
EBITDA	14.13M	14.13M	4.35M	6.62M	5.97M	8.07M
Net Income	8.98M	8.98M	2.13M	7.07M	4.57M	4.45M
Balance Sheet
Total Assets	61.19M	61.19M	52.48M	51.82M	47.33M	40.32M
Cash, Cash Equivalents and Short-Term Investments	7.16M	7.16M	6.85M	4.07M	1.60M	5.02M
Total Debt	16.58M	16.58M	13.55M	14.79M	15.59M	15.20M
Total Liabilities	24.56M	24.56M	21.61M	20.23M	23.66M	20.24M
Stockholders Equity	36.63M	36.63M	30.87M	31.59M	23.67M	20.08M
Cash Flow
Free Cash Flow	-2.93M	-2.93M	5.22M	4.49M	-2.52M	-10.38M
Operating Cash Flow	-1.68M	-1.68M	6.20M	5.46M	-847.00K	-2.08M
Investing Cash Flow	-238.00K	-238.00K	-2.23M	-885.00K	-1.24M	-3.71M
Financing Cash Flow	-292.00K	-292.00K	-4.27M	-2.49M	-790.00K	3.09M

Pro-Dex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.94
• 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 PDEX, the sentiment is Negative. The current price of 34.94 is below the 20-day moving average (MA) of 38.13, below the 50-day MA of 43.09, and below the 200-day MA of 45.17, indicating a bearish trend. The MACD of -2.85 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 66.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDEX.

Pro-Dex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTMD	77 Outperform	201.54M	16.85	11.81%	1.94%	-16.64%	-13.64%
INFU	70 Outperform	209.37M	43.21	9.30%	―	8.13%	1293.06%
STXS	66 Neutral	266.84M	-10.34	-210.33%	―	33.94%	-6.91%
SMTI	61 Neutral	289.95M	-28.05	-28.07%	―	34.29%	-49.21%
PDEX	60 Neutral	$113.97M	12.95	26.60%	―	23.68%	341.25%
OSUR	50 Neutral	236.23M	-4.72	-13.40%	―	-49.35%	-285.61%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pro-Dex Corporate Events

Pro-Dex Awards Executive Bonuses Amid Strong Performance

On August 14, 2025, Pro-Dex‘s Compensation Committee approved discretionary cash bonuses for its executives. CEO Richard L. Van Kirk received a $70,000 bonus due to the company’s sales growth and financial performance surpassing expectations, while CFO Alisha K. Charlton was awarded a $50,000 bonus. These bonuses are set to be paid on August 21, 2025.