Pro-Dex (PDEX) AI Stock Analysis

• Market Cap: $155.81M
• Dividend Yield: N/A
• Average Volume (3M): 36.20K
• Price to Earnings (P/E): 23.2
• Beta (1Y): -0.09
• Revenue Growth: 26.45%
• EPS Growth: 44.45%
• Country: US
• Employees: 148
• Sector: Healthcare
• Sector Strength: 78
• Industry: Medical Equipment & Supplies
• EPS (TTM): 2.00
• Shares Outstanding: 3,261,043
• 10 Day Avg. Volume: 51,763
• 30 Day Avg. Volume: 36,196
• PEG Ratio: 0.52
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.49
• Price to Cash Flow (P/CF): -9.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $54.00
• Price Target Upside: 18.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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 Business Overview & Revenue Model

Company Description

Pro-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 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 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
61.00M	53.84M	46.09M	42.04M	38.03M	34.83M
	Gross Profit
18.52M	14.55M	12.75M	13.13M	13.57M	13.14M
	EBIT
10.27M	7.17M	5.76M	5.12M	4.53M	7.07M
	EBITDA
12.03M	8.33M	6.62M	5.97M	8.07M	8.75M
	Net Income Common Stockholders
6.75M	2.13M	7.07M	4.57M	4.45M	6.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
66.00K	6.85M	4.07M	1.60M	5.02M	8.98M
	Total Assets
60.37M	52.48M	51.82M	47.33M	40.32M	31.13M
	Total Debt
17.33M	13.55M	14.79M	15.59M	15.20M	6.68M
	Net Debt
17.26M	10.92M	11.86M	14.74M	11.48M	263.00K
	Total Liabilities
28.55M	21.61M	20.23M	23.66M	20.24M	12.06M
	Stockholders Equity
31.82M	30.87M	31.59M	23.67M	20.08M	19.06M
Cash Flow		Free Cash Flow
2.61M	5.22M	4.49M	-2.52M	-10.38M	5.33M
	Operating Cash Flow
2.83M	6.20M	5.46M	-847.00K	-2.08M	5.90M
	Investing Cash Flow
-1.20M	-2.23M	-885.00K	-1.24M	-3.71M	-3.24M
	Financing Cash Flow
-2.86M	-4.27M	-2.49M	-790.00K	3.09M	-3.98M

Pro-Dex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PODD	76 Outperform	$17.23B	42.91	43.03%	―	22.07%	101.95%
ZBH	72 Outperform	$20.71B	23.47	7.24%	0.92%	3.84%	-9.29%
ATR	69 Neutral	$9.71B	26.42	15.68%	1.21%	2.74%	30.22%
PDEX	68 Neutral	$155.81M	23.23	21.22%	―	26.45%	44.45%
NVRO	61 Neutral	$221.79M	―	-43.28%	―	-3.92%	-18.67%
OMCL	60 Neutral	$1.56B	123.07	1.03%	―	-3.04%	―
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%

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.