NasdaqCM:PDEX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Pro-Dex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PDEX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

PDEX

0.4%

US Medical Equipment

2.6%

US Market


1 Year Return

56.5%

PDEX

16.8%

US Medical Equipment

15.4%

US Market

Return vs Industry: PDEX exceeded the US Medical Equipment industry which returned 17% over the past year.

Return vs Market: PDEX exceeded the US Market which returned 16.2% over the past year.


Shareholder returns

PDEXIndustryMarket
7 Day2.9%0.4%2.6%
30 Day15.8%9.8%6.1%
90 Day21.3%11.9%16.6%
1 Year56.5%56.5%17.8%16.8%17.8%15.4%
3 Year237.7%237.7%77.1%72.3%43.9%34.7%
5 Year788.0%788.0%121.8%104.5%76.2%57.3%

Price Volatility Vs. Market

How volatile is Pro-Dex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pro-Dex undervalued compared to its fair value and its price relative to the market?

18.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PDEX ($20.6) is trading above our estimate of fair value ($4.32)

Significantly Below Fair Value: PDEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PDEX is good value based on its PE Ratio (18.4x) compared to the US Medical Equipment industry average (53.5x).

PE vs Market: PDEX is poor value based on its PE Ratio (18.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: PDEX is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: PDEX is overvalued based on its PB Ratio (4.6x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDEX's forecast earnings growth (6.4% per year) is above the savings rate (2.2%).

Earnings vs Market: PDEX's earnings (6.4% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: PDEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: PDEX's revenue (2.8% per year) is forecast to grow slower than the US market (9.4% 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


Next Steps

Past Performance

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

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDEX has a high level of non-cash earnings.

Growing Profit Margin: PDEX's current net profit margins (14.5%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: PDEX has become profitable over the past 5 years, growing earnings by 32.2% per year.

Accelerating Growth: PDEX's earnings growth over the past year (29.7%) is below its 5-year average (32.2% per year).

Earnings vs Industry: PDEX earnings growth over the past year (29.7%) exceeded the Medical Equipment industry 1.2%.


Return on Equity

High ROE: PDEX's Return on Equity (26%) is considered high.


Next Steps

Financial Health

How is Pro-Dex's financial position?


Financial Position Analysis

Short Term Liabilities: PDEX's short term assets ($20.6M) exceed its short term liabilities ($4.4M).

Long Term Liabilities: PDEX's short term assets ($20.6M) exceed its long term liabilities ($6.6M).


Debt to Equity History and Analysis

Debt Level: PDEX's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: PDEX's debt to equity ratio has increased from 1.1% to 23.8% over the past 5 years.

Debt Coverage: PDEX's debt is well covered by operating cash flow (62.1%).

Interest Coverage: PDEX's interest payments on its debt are well covered by EBIT (38.1x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PDEX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Healthcare industry.

Management

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

7.6yrs

Average board tenure


CEO

Rick Van Kirk (59 yo)

5.58yrs

Tenure

US$454,757

Compensation

Mr. Richard Lee Van Kirk, Jr., also known as Rick, has been the Chief Executive Officer and President of Pro-Dex Inc., since January 12, 2015 and has been its Chief Operating Officer since April 23, 2013. ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD454.76K) is about average for companies of similar size in the US market ($USD606.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard Van Kirk
CEO, President5.58yrsUS$454.76k1.03%
$ 810.1k
Raymond Cabillot
Independent Director7.58yrsUS$18.00kno data
David Hovda
Independent Director7.58yrsUS$25.00k0.021%
$ 16.5k
Nicholas Swenson
Independent Chairman of the Boardno dataUS$18.00k2.51%
$ 2.0m
William Farrell
Independent Director7.58yrsUS$18.00k0.16%
$ 128.2k
Katrina Philp
Director0.67yrno data0.18%
$ 140.5k

7.6yrs

Average Tenure

57yo

Average Age

Experienced Board: PDEX's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

Company Information

Pro-Dex, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pro-Dex, Inc.
  • Ticker: PDEX
  • Exchange: NasdaqCM
  • Founded: 1978
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$78.814m
  • Shares outstanding: 3.81m
  • Website: https://www.pro-dex.com

Number of Employees


Location

  • Pro-Dex, Inc.
  • 2361 McGaw Avenue
  • Irvine
  • California
  • 92614
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDEXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 1986
PDXNDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1986

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 23:36
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.