Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $149.55M
• Dividend Yield: N/A
• Average Volume (3M): 53.05K
• Price to Earnings (P/E): 22.9
• Beta (1Y): -0.04
• Revenue Growth: 26.45%
• EPS Growth: 44.45%
• Country: US
• Employees: 146
• Sector: Healthcare
• Sector Strength: 57
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.00
• Shares Outstanding: 3,261,043
• 10 Day Avg. Volume: 70,380
• 30 Day Avg. Volume: 53,052
• PEG Ratio: 0.52
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.62
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.00
• Price Target Upside: 17.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Pro-Dex's strong financial performance and technical indicators suggest potential growth, but recent cash flow issues and moderate valuation temper the outlook. The stock's positive price momentum is offset by low RSI, indicating caution.

Positive Factors

Analyst Rating

Analyst maintains a BUY rating and raises the 12-month price target to $52, reflecting confidence in the company’s strong growth potential.

Earnings

Pro-Dex reported fiscal Q2 2025 revenue of $16.8 million, a 33% increase year-over-year, exceeding estimates.

Product Development

Pro-Dex is diversifying its customer base and product lines by developing new devices, which is seen as a positive move.

Negative Factors

Backlog

The company experienced a large jump in backlog, with Q1 backlog rising to $57 million from $20 million in the previous quarter.

Pro-Dex Business Overview & Revenue Model

Company Description

Pro-Dex, Inc. (PDEX) is a company specializing in the design and manufacture of precision rotary drive systems and multi-axis motion control solutions, primarily serving the medical device and dental implant industries. The company also provides engineering consulting and manufacturing services, focusing on delivering innovative, high-performance products tailored to meet specific customer needs. Pro-Dex's core offerings include micro air-motors, surgical drivers, and related products, which are essential components in advanced surgical and dental procedures.

How the Company Makes Money

Pro-Dex makes money by designing, manufacturing, and selling precision rotary drive systems and related products primarily used in medical and dental applications. Its revenue model is based on direct sales to original equipment manufacturers (OEMs) that integrate Pro-Dex's products into their own medical and dental devices. The company also generates income through engineering consulting services, leveraging its expertise to assist clients in developing custom solutions. Key revenue streams include sales of surgical drivers, air motors, and motion control systems. Strategic partnerships and long-term contracts with leading medical device companies contribute significantly to Pro-Dex's earnings, ensuring a stable and recurring revenue base.

Pro-Dex Financial Statement Overview

Summary

Pro-Dex exhibits strong revenue growth and stable margins, reflecting efficient operations and sound financial health. However, recent cash flow declines indicate potential liquidity challenges.

Income Statement

Pro-Dex has shown robust revenue growth over the years, with a significant increase from $38.03M in 2021 to $64.12M in the TTM period. The gross profit margin and net profit margin have been stable, indicating efficient cost management and profitability. The EBIT margin has improved, suggesting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. The equity ratio has remained relatively strong, reflecting a solid financial structure. However, the total debt level remains a consideration for potential risks.

Cash Flow

There has been a decline in operating cash flow and free cash flow in the TTM period, suggesting cash management challenges. The free cash flow to net income ratio has also declined, indicating potential issues in converting earnings to cash. However, previous years showed positive cash flow trends.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
53.84M	46.09M	42.04M	38.03M	34.83M
	Gross Profit
14.55M	12.75M	13.13M	13.57M	13.14M
	EBIT
7.17M	5.76M	5.12M	4.53M	7.07M
	EBITDA
4.35M	6.62M	5.97M	8.07M	8.75M
	Net Income Common Stockholders
2.13M	7.07M	4.57M	4.45M	6.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.85M	4.07M	1.60M	5.02M	8.98M
	Total Assets
52.48M	51.82M	47.33M	40.32M	31.13M
	Total Debt
13.55M	14.79M	15.59M	15.20M	6.68M
	Net Debt
10.92M	11.86M	14.74M	11.48M	263.00K
	Total Liabilities
21.61M	20.23M	23.66M	20.24M	12.06M
	Stockholders Equity
30.87M	31.59M	23.67M	20.08M	19.06M
Cash Flow		Free Cash Flow
5.22M	4.49M	-2.52M	-10.38M	5.33M
	Operating Cash Flow
6.20M	5.46M	-847.00K	-2.08M	5.90M
	Investing Cash Flow
-2.23M	-885.00K	-1.24M	-3.71M	-3.24M
	Financing Cash Flow
-4.27M	-2.49M	-790.00K	3.09M	-3.98M

Pro-Dex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 45.86 is below the 20-day moving average (MA) of 60.93, below the 50-day MA of 50.65, and above the 200-day MA of 38.35, indicating a neutral trend. The MACD of 2.85 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 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	67 Neutral	$172.82M	13.94	10.59%	2.30%	-19.92%	―
PDEX	65 Neutral	$149.55M	22.89	28.29%	―	26.45%	44.45%
INFU	65 Neutral	$101.93M	45.33	4.27%	―	7.22%	166.34%
SMTI	64 Neutral	$292.33M	―	-22.95%	―	33.36%	-118.51%
STXS	58 Neutral	$173.68M	―	-144.19%	―	0.55%	-8.47%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
OSUR	50 Neutral	$230.92M	25.27	-4.64%	―	-54.17%	-135.78%

Pro-Dex Corporate Events

Pro-Dex Grants Restricted Shares to Key Executives

Pro-Dex, Inc. has granted restricted shares to its non-employee directors and select employees, including key executives like the CEO and CFO, under its 2016 Equity Incentive Plan. These shares will vest over five years, providing an incentive for continued employment and aligning interests with the company’s long-term growth. This move reflects a strategic approach to rewarding and retaining top talent within the company.