Pro Dex Inc (PDEX) stock analysis

P/E above its 5-year median

Pro Dex's P/E of 19.7 is above its own 5-year median of 15.1.

P/E below the industry

Pro Dex's P/E of 19.7 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA above its 5-year median

Pro Dex's EV/EBITDA of 15.3 is above its 5-year median of 10.9.

P/B above the industry

Pro Dex's price-to-book of 4.64 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading above fair value

The share price of $71.49 is above our fair value estimate of $71.32.

Margin of safety under 20%

The price is 0.2% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 18.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 28.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 7.5% over the last twelve months, against a 5-year average of 17.2% a year.

Growing faster than the industry

Revenue grew 13.3% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 32.5% over the last twelve months, against 28.1% a year earlier.

Return on equity over 15%

Return on equity was 26.5% over the last twelve months and averaged 22.1% over five years.

Return on capital over 10%

Return on invested capital was 24.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Pro Dex's return on equity of 26.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings grew over 5 years

Net income grew 17.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 15.1% over the last twelve months, against a 5-year average of 12.3%.

Net margin above the industry

Pro Dex's net margin of 15.1% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

Low debt

Debt is 24.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 60.4% five years ago to 24.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 93.1% of total debt.

Interest well covered

Operating income covers interest expense 15.4 times.

Short-term assets cover short-term debts

Current assets are 4.19 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.20; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Pro Dex has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.