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Pro-Dex (PDEX)
NASDAQ:PDEX

Pro-Dex (PDEX) AI Stock Analysis

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Pro-Dex

(NASDAQ:PDEX)

68Neutral
Pro-Dex's overall stock score is driven by robust financial health, with strong revenue and profit growth being key strengths. The technical analysis suggests current bullish momentum but highlights potential risks due to overbought conditions. Valuation is reasonable, albeit with limited short-term upside due to the current P/E ratio. The absence of dividend yield might be a drawback for some investors. Overall, Pro-Dex is well-positioned for growth, with caution advised on technical grounds.
Positive Factors
Market Confidence
Analyst maintains a BUY rating and raises the 12-month price target to $52, reflecting confidence in the company’s strong growth potential.
Product Development
Pro-Dex is diversifying its customer base and product lines by developing new devices, which is seen as a positive move.
Revenue Growth
Pro-Dex reported fiscal Q2 2025 revenue of $16.8 million, a 33% increase year-over-year, exceeding estimates.
Negative Factors

Pro-Dex (PDEX) vs. S&P 500 (SPY)

Pro-Dex Business Overview & Revenue Model

Company DescriptionPro-Dex, Inc. engages in the design, development, and manufacture of rotary drive surgical and dental instruments used primarily in the orthopedic, spine, maxocranial facial and dental markets. It specializes in medical device and services, industrial and scientific, dental and component, repairs, and other. Its products include finished medical devices, micro air-motors, dental products, plastic injection molding, and torque wrenches. The company was founded on January 26, 1994 and is headquartered in Irvine, CA.
How the Company Makes MoneyPro-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 financial performance with robust revenue and profit growth. The company maintains a healthy balance between debt and equity, supporting financial stability. While cash flow generation is positive, there is potential for improving cash conversion efficiency. Overall, Pro-Dex is in a sound financial position with opportunities for further growth and optimization.
Income Statement
85
Very Positive
Pro-Dex has demonstrated strong revenue growth with a significant increase from $53.84 million to $61.00 million in TTM. The Gross Profit Margin is healthy at 30.36%, and the Net Profit Margin improved to 11.06%. This indicates effective cost management and pricing strategies. However, the Net Income in TTM exceeded EBIT, which suggests potential one-off gains or accounting adjustments.
Balance Sheet
78
Positive
The Balance Sheet reflects a solid equity base with a Debt-to-Equity Ratio of 0.54, indicating manageable leverage. Return on Equity stands at 21.20%, showcasing strong profitability relative to shareholder's equity. However, the Equity Ratio is slightly low at 52.72%, suggesting a moderate reliance on debt.
Cash Flow
72
Positive
Cash flow analysis indicates a positive Free Cash Flow with a growth rate of 1.20% in TTM, reflecting effective cash management. The Operating Cash Flow to Net Income ratio is 0.42, suggesting room for improvement in converting sales into cash. The Free Cash Flow to Net Income ratio is 0.39, indicating moderate efficiency in cash generation relative to profits.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
61.00M53.84M46.09M42.04M38.03M34.83M
Gross Profit
18.52M14.55M12.75M13.13M13.57M13.14M
EBIT
10.27M7.17M5.76M5.12M4.53M7.07M
EBITDA
12.03M8.33M6.62M5.97M8.07M8.75M
Net Income Common Stockholders
6.75M2.13M7.07M4.57M4.45M6.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
66.00K6.85M4.07M1.60M5.02M8.98M
Total Assets
60.37M52.48M51.82M47.33M40.32M31.13M
Total Debt
17.33M13.55M14.79M15.59M15.20M6.68M
Net Debt
17.26M10.92M11.86M14.74M11.48M263.00K
Total Liabilities
28.55M21.61M20.23M23.66M20.24M12.06M
Stockholders Equity
31.82M30.87M31.59M23.67M20.08M19.06M
Cash FlowFree Cash Flow
2.61M5.22M4.49M-2.52M-10.38M5.33M
Operating Cash Flow
2.83M6.20M5.46M-847.00K-2.08M5.90M
Investing Cash Flow
-1.20M-2.23M-885.00K-1.24M-3.71M-3.24M
Financing Cash Flow
-2.86M-4.27M-2.49M-790.00K3.09M-3.98M

Pro-Dex Technical Analysis

Technical Analysis Sentiment
Positive
Last Price45.70
Price Trends
50DMA
40.11
Positive
100DMA
41.69
Positive
200DMA
31.82
Positive
Market Momentum
MACD
1.71
Negative
RSI
65.54
Neutral
STOCH
89.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDEX, the sentiment is Positive. The current price of 45.7 is above the 20-day moving average (MA) of 36.89, above the 50-day MA of 40.11, and above the 200-day MA of 31.82, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 89.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDEX.

Pro-Dex Risk Analysis

Pro-Dex disclosed 23 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

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$17.23B42.9143.03%22.07%101.95%
ZBZBH
72
Outperform
$20.71B23.477.24%0.92%3.84%-9.29%
ATATR
69
Neutral
$9.71B26.4215.68%1.21%2.74%30.22%
68
Neutral
$155.81M23.2321.22%26.45%44.45%
61
Neutral
$221.79M-43.28%-3.92%-18.67%
60
Neutral
$1.56B123.071.03%-3.04%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PDEX
Pro-Dex
45.70
28.30
162.64%
ATR
AptarGroup
144.76
5.46
3.92%
PODD
Insulet
244.67
76.97
45.90%
OMCL
Omnicell
32.28
4.69
17.00%
ZBH
Zimmer Biomet Holdings
107.57
-17.09
-13.71%
NVRO
Nevro Corp
5.79
-8.11
-58.35%

Pro-Dex Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Pro-Dex Grants Restricted Shares to Key Executives
Positive
Nov 25, 2024

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.