Pro-Dex, Inc.
Pro-Dex, Inc. Fundamental Analysis
Pro-Dex, Inc. (PDEX) shows strong financial fundamentals with a PE ratio of 11.32, profit margin of 15.73%, and ROE of 29.25%. The company generates $0.1B in annual revenue with strong year-over-year growth of 23.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PDEX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPDEX demonstrates superior asset utilization.
Valuation Score
ModeratePDEX shows balanced valuation metrics.
Growth Score
ModeratePDEX shows steady but slowing expansion.
Financial Health Score
ExcellentPDEX maintains a strong and stable balance sheet.
Profitability Score
ExcellentPDEX achieves industry-leading margins.
Key Financial Metrics
Is PDEX Expensive or Cheap?
P/E Ratio
PDEX trades at 11.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PDEX's PEG of 9.71 indicates potential overvaluation.
Price to Book
The market values Pro-Dex, Inc. at 3.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.20 times EBITDA. This is generally considered low.
How Well Does PDEX Make Money?
Net Profit Margin
For every $100 in sales, Pro-Dex, Inc. keeps $15.73 as profit after all expenses.
Operating Margin
Core operations generate 15.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.25 in profit for every $100 of shareholder equity.
ROA
Pro-Dex, Inc. generates $18.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pro-Dex, Inc. generates limited operating cash flow of $6.49M, signaling weaker underlying cash strength.
Free Cash Flow
Pro-Dex, Inc. produces free cash flow of $6.14M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.88 in free cash annually.
FCF Yield
PDEX converts 4.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How PDEX Stacks Against Its Sector Peers
| Metric | PDEX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.32 | 29.43 | Better (Cheaper) |
| ROE | 29.25% | 800.00% | Weak |
| Net Margin | 15.73% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.30 | Neutral |
| Current Ratio | 4.03 | 4.64 | Strong Liquidity |
| ROA | 18.21% | -17936.00% (disorted) | Strong |
PDEX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pro-Dex, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
127.40%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
74.73%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-133.93%
Industry Style: Defensive, Growth, Innovation
Declining