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Pro-Dex
(NASDAQ:PDEX)
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Rating:74Outperform
Price Target:
$72.00
▲(10.40% Upside)
Action:Reiterated
Date:09/19/26
The score is driven primarily by strong financial performance—robust revenue expansion and materially improved 2026 profitability with improving leverage—tempered by historically inconsistent cash flow and sub-1x cash conversion versus net income. Technicals add support (price above major moving averages and positive MACD), while valuation is reasonable but not clearly cheap and lacks dividend support in the provided data. Corporate events are mildly positive but not a major driver.
Positive Factors
Revenue and Profitability Growth
Pro-Dex has expanded revenue substantially while also achieving much stronger profitability in the latest year. This combination suggests improved operating scale and earnings power, giving the company greater capacity to reinvest in products, engineering capabilities, and customer relationships over the next several quarters.
Negative Factors
Weak and Inconsistent Cash Conversion
Although operating and free cash flow turned positive in 2026, the history of negative years and cash flow below net income show that earnings have not converted consistently into cash. Working-capital or timing swings could limit internally funded investment and make financial performance less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Pro-Dex has expanded revenue substantially while also achieving much stronger profitability in the latest year. This combination suggests improved operating scale and earnings power, giving the company greater capacity to reinvest in products, engineering capabilities, and customer relationships over the next several quarters.
Read all positive factors
Pro-Dex Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, revealing which areas are driving growth and which may need strategic adjustments.
Highlights revenue from different business segments, revealing which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyPro-Dex (PDEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$205.24M
Dividend YieldN/A
Average Volume (3M)69.16K
Price to Earnings (P/E)15.2
Beta (1Y)0.38
Revenue Growth16.45%
EPS Growth53.76%
CountryUS
Employees204
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)4.22
Shares Outstanding3,203,334
10 Day Avg. Volume64,532
30 Day Avg. Volume69,163
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)3.97
Price to Sales (P/S)2.44
P/FCF Ratio27.94
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.61
Enterprise Value/Gross Profit8.32
Enterprise Value/Ebitda10.15
Forecast
1Y Price Target
$74.00Price Target Upside13.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.78
Revenue Forecast (FY)$81.00M
Pro-Dex Business Overview & Revenue Model
Company Description
Pro-Dex, Inc. focuses on the development and manufacturing of advanced motorized surgical instruments. These sophisticated tools are supplied globally to original equipment manufacturers (OEMs) in the medical device sector. Their product portfolio...
How the Company Makes Money
Pro-Dex primarily makes money by providing contract manufacturing and engineering services to medical device original equipment manufacturers (OEMs). Revenue is generated through (1) manufacturing and assembly of powered surgical instruments and r...
Pro-Dex Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
79
Positive
Cash Flow
62
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 77.55M | 66.59M | 53.84M | 46.09M | 42.04M |
| Gross Profit | 24.34M | 19.51M | 14.55M | 12.75M | 13.13M |
| EBITDA | 14.38M | 14.13M | 4.35M | 10.82M | 6.88M |
| Net Income | 13.66M | 8.98M | 2.13M | 7.07M | 4.57M |
Balance Sheet | |||||
| Total Assets | 74.51M | 61.19M | 52.48M | 51.82M | 49.09M |
| Cash, Cash Equivalents and Short-Term Investments | 9.34M | 7.16M | 6.85M | 4.07M | 1.60M |
| Total Debt | 18.10M | 16.58M | 13.55M | 14.79M | 15.97M |
| Total Liabilities | 26.88M | 24.56M | 21.61M | 20.23M | 23.66M |
| Stockholders Equity | 47.63M | 36.63M | 30.87M | 31.59M | 25.43M |
Cash Flow | |||||
| Free Cash Flow | 6.76M | -2.93M | 5.22M | 4.49M | -2.52M |
| Operating Cash Flow | 7.24M | -1.68M | 6.20M | 5.46M | -847.00K |
| Investing Cash Flow | 3.91M | -238.00K | -2.23M | -885.00K | -1.24M |
| Financing Cash Flow | -3.38M | -292.00K | -4.27M | -2.49M | -790.00K |
Pro-Dex Technical Analysis
Neutral
65.22
Price Trends
65.59
Negative
63.59
Positive
54.48
Positive
Market Momentum
0.79
Positive
42.55
Neutral
8.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDEX, the sentiment is Neutral. The current price of 65.22 is below the 20-day moving average (MA) of 68.61, below the 50-day MA of 65.59, and above the 200-day MA of 54.48, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDEX.
Pro-Dex Risk Analysis
Pro-Dex disclosed 24 risk factors in its most recent earnings report. Pro-Dex 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
Pro-Dex Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $235.28M | 22.60 | 8.74% | 1.67% | -7.00% | -12.28% | |
74 Outperform | $205.24M | 15.18 | 31.05% | ― | 16.45% | 53.76% | |
60 Neutral | $136.67M | -75.51 | -10.63% | ― | 22.41% | 60.02% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
PDEX
Pro-Dex
64.07
30.23
89.33%
UTMD
Utah Medical Products
74.13
12.59
20.47%
MBOT
Microbot Medical
1.16
-2.06
-63.98%
KRMD
REPRO-MED Systems
2.96
-1.00
-25.25%
ZJYL
Jin Medical International Ltd.
1.94
-9.41
-82.91%
Pro-Dex Corporate Events
Business Operations and Strategy
Pro-Dex Extends Irvine Headquarters Lease Through 2030
Positive
Sep 18, 2026
On September 16, 2026, Pro-Dex entered into a Third Amendment to its long-standing lease for its Irvine headquarters and manufacturing facility, effective August 18, 2026, extending the lease term to September 30, 2030. The amendment introduces 3....
Executive/Board ChangesFinancial Disclosures
Pro-Dex Awards Executive Bonuses After Strong Fiscal 2026
Positive
Aug 28, 2026
On August 26, 2026, Pro-Dex’s compensation committee approved discretionary cash bonuses for Chief Executive Officer Richard L. Van Kirk and Chief Financial Officer Alisha K. Charlton, to be paid in the next bi-weekly pay period with a pay d...
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.