Pro-Dex (NasdaqCM:PDEX) - Share price, News & Analysis

Q: What is the Fair Price of PDEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PDEX ($15.95) is trading below our estimate of [[fair value]] ($22.14)

PDEX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

PDEX Stock Overview

Pro-Dex, Inc. designs, develops, and manufactures powered surgical instruments for medical device original equipment manufacturers worldwide.

Rewards

Trading at 28% below our estimate of its fair value

Earnings are forecast to grow 72.3% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (4.8%) are lower than last year (19.1%)

Does not have a meaningful market cap ($58M)

Pro-Dex Competitors

Trinity Biotech

NasdaqGS:TRIB

US$42.8m

Rayont

OTCPK:RAYT

US$45.7m

Electromed

NYSEAM:ELMD

US$82.1m

Daxor

NasdaqCM:DXR

US$53.3m

Price History & Performance

Summary of all time highs, changes and price drops for Pro-Dex
Historical stock prices
Current Share Price	US$15.95
52 Week High	US$32.00
52 Week Low	US$12.40
Beta	1.11
1 Month Change	-0.25%
3 Month Change	-1.54%
1 Year Change	-49.04%
3 Year Change	19.93%
5 Year Change	153.17%
Change since IPO	193.33%

Recent News & Updates

May 10

Is Now The Time To Look At Buying Pro-Dex, Inc. (NASDAQ:PDEX)?

Pro-Dex, Inc. ( NASDAQ:PDEX ), is not the largest company out there, but it received a lot of attention from a...

Apr 21

Is Pro-Dex (NASDAQ:PDEX) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	PDEX	US Medical Equipment	US Market
7D	1.4%	3.4%	1.6%
1Y	-49.0%	-24.5%	-20.8%

Return vs Industry: PDEX underperformed the US Medical Equipment industry which returned -24.5% over the past year.

Return vs Market: PDEX underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is PDEX's price volatile compared to industry and market?
PDEX volatility
PDEX Average Weekly Movement	9.9%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PDEX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PDEX's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	118	Rick Van Kirk	https://www.pro-dex.com

Pro-Dex, Inc. designs, develops, and manufactures powered surgical instruments for medical device original equipment manufacturers worldwide. The company offers autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers that are primarily used in the orthopedic, thoracic, and craniomaxillofacial markets. It also provides engineering, quality, and regulatory consulting services; and manufactures and sells rotary air motors to various industries.

Pro-Dex Fundamentals Summary

How do Pro-Dex's earnings and revenue compare to its market cap?
PDEX fundamental statistics
Market Cap	US$57.72m
Earnings (TTM)	US$1.86m
Revenue (TTM)	US$38.86m

31.0x

P/E Ratio

1.5x

P/S Ratio

Is PDEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PDEX income statement (TTM)
Revenue	US$38.86m
Cost of Revenue	US$26.05m
Gross Profit	US$12.81m
Other Expenses	US$10.95m
Earnings	US$1.86m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.51
Gross Margin	32.96%
Net Profit Margin	4.79%
Debt/Equity Ratio	54.9%

How did PDEX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PDEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PDEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PDEX. This is calculated by dividing PDEX's market cap by their current preferred multiple.
What is PDEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$57.72m

PDEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	12.3x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does PDEX's PE Ratio compare to its peers?

PDEX PE Ratio vs Peers

The above table shows the PE ratio for PDEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	53.6x
TRIB Trinity Biotech	46.1x	109.0%	US$42.8m
RAYT Rayont	121.6x	n/a	US$45.7m
ELMD Electromed	35.3x	n/a	US$82.1m
DXR Daxor	11.2x	n/a	US$53.3m
PDEX Pro-Dex	31x	72.3%	US$57.7m

Forward PE

Price-To-Earnings vs Peers: PDEX is good value based on its Price-To-Earnings Ratio (31x) compared to the peer average (53.6x).

Price to Earnings Ratio vs Industry

How does PDEX's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: PDEX is good value based on its Price-To-Earnings Ratio (31x) compared to the US Medical Equipment industry average (33.6x)

Price to Earnings Ratio vs Fair Ratio

What is PDEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PDEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31x
Fair PE Ratio	75.9x

Price-To-Earnings vs Fair Ratio: PDEX is good value based on its Price-To-Earnings Ratio (31x) compared to the estimated Fair Price-To-Earnings Ratio (75.9x).

Share Price vs Fair Value

What is the Fair Price of PDEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PDEX ($15.95) is trading below our estimate of fair value ($22.14)

Significantly Below Fair Value: PDEX is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: PDEX is good value based on its PEG Ratio (0.4x)

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Future Growth

How is Pro-Dex forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

72.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDEX's forecast earnings growth (72.3% per year) is above the savings rate (1.9%).

Earnings vs Market: PDEX's earnings (72.3% per year) are forecast to grow faster than the US market (13.7% per year).

High Growth Earnings: PDEX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PDEX's revenue (2.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: PDEX's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PDEX's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Pro-Dex performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PDEX has a large one-off loss of $1.4M impacting its March 31 2022 financial results.

Growing Profit Margin: PDEX's current net profit margins (4.8%) are lower than last year (19.1%).

Past Earnings Growth Analysis

Earnings Trend: PDEX's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: PDEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PDEX had negative earnings growth (-75.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (12.9%).

Return on Equity

High ROE: PDEX's Return on Equity (8.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Pro-Dex's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PDEX's short term assets ($28.1M) exceed its short term liabilities ($7.7M).

Long Term Liabilities: PDEX's short term assets ($28.1M) exceed its long term liabilities ($13.9M).

Debt to Equity History and Analysis

Debt Level: PDEX's net debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: PDEX's debt to equity ratio has increased from 0.8% to 54.9% over the past 5 years.

Debt Coverage: PDEX's debt is well covered by operating cash flow (42.2%).

Interest Coverage: PDEX's interest payments on its debt are well covered by EBIT (11.5x coverage).

Balance Sheet

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Dividend

What is Pro-Dex current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PDEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PDEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PDEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PDEX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PDEX has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure

CEO

Rick Van Kirk (60 yo)

9.17yrs

Tenure

US$1,978,007

Compensation

Mr. Richard Lee Van Kirk, Jr., also known as Rick, has been the Chief Executive Officer, President and Director of Pro-Dex Inc., since January 12, 2015 and has been its Chief Operating Officer since April...

CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD1.98M) is above average for companies of similar size in the US market ($USD760.83K).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: PDEX's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: PDEX's board of directors are considered experienced (9.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: PDEX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30