Pro-Dex, Inc (NASDAQ:PDEX) Accelerates Margin Recovery With Under-Valued WMDST Valuation

Pro-Dex shows accelerating operational profitability alongside renewed investor outreach, leaving fundamentals supportive of a re-rating. Technical momentum and a below-peer enterprise multiple frame a near-term bias toward higher market recognition.

Recent News

On June 17, 2026 Pro‑Dex filed a Regulation FD investor presentation and began public investor/analyst presentations. On May 26, 2026 the company disclosed a Form 4 reporting the CEO’s open‑market sale of 10,000 shares executed May 21–22, 2026. On May 12, 2026 an analyst at Ascendiant Capital maintained a Buy rating and raised the price target. On July 14, 2026 filings and news services reported a director’s reported open‑market sale of 998 shares (transaction date March 16, 2026).

Technical Analysis

Directional indicators show bullish bias: DI+ at 24.33 and increasing while DI‑ at 15.21 is decreasing, which signals constructive directional momentum supporting near‑term upside toward fair value.

ADX reads 25.21, indicating a measurable trend strength; that trend strength increases the probability that recent bullish directional signals will persist and therefore supports the near‑term price bias implied by momentum indicators.

MACD stands at 1.24 and trends upward with the MACD line above the signal line (signal = 0.09), constituting a bullish momentum confirmation that aligns with short‑term continuation potential.

MRO registers ‑19.06 and is increasing; the negative MRO indicates price sits below the model target and, with the oscillator rising, suggests mean reversion pressure that favors further upside toward the target level implied by momentum improvements.

RSI at 52.73 and rising implies available upside without overbought extremes; price recently trades above the 20‑day and 50‑day averages and above the 12/26 EMAs, which reinforces bias for continued advance while keeping pullback risk intact near the upper Bollinger band (upper 1× std = $66.23).

 


Fundamental Analysis

Revenue expanded sharply year‑over‑year: YoY revenue growth stands at 86.34%, with the most recent QoQ revenue change showing a large reported increase (converted: 859.75% QoQ). Total revenue: $19,949,000. Such top‑line acceleration drives operating leverage despite some margin variability.

Operating profitability strengthened: EBIT equals $5,541,000 and EBIT margin equals 27.78%, above the industry peer mean of 12.30% and above the industry peer median of 14.54% while remaining within the industry peer range. This level of operating margin supports the WMDST under‑valued view by showing superior conversion of revenue into operating profit versus typical peers.

Cash and liquidity remain ample: cash of $9,993,000 and cash plus short‑term investments of $10,979,000 produce a current ratio of 3.67 and a quick ratio of 2.14, both above the industry peer mean levels and indicating a conservative short‑term liquidity position relative to liabilities of $29,779,000.

Capital structure and leverage: total debt of $19,334,000 produces debt‑to‑assets of 25.79% and debt‑to‑equity of 42.78%; interest coverage at 27.57× shows strong capacity to service debt. Free cash flow equals $1,521,000 with a free cash flow yield of 1.00%, modestly above the industry peer mean of 0.70%.

Market multiples present mixed signals: price‑to‑book at 3.36 sits below the industry peer mean of 4.01 but above the peer median of 3.09; forward P/E near 84.71 aligns close to the industry peer mean. Enterprise multiple at 27.17 falls well below the industry peer mean, implying a valuation gap relative to peers on an EV basis.

The current valuation as determined by WMDST: under‑valued. WMDST’s assessment draws on superior EBIT margin, ample liquidity, positive cash conversion and a below‑peer enterprise multiple that collectively suggest upside to market valuation if operating momentum sustains.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-07-29
NEXT REPORT DATE: 2026-10-28
CASH FLOW  Begin Period Cash Flow 8.0 M
 Operating Cash Flow 3.2 M
 Capital Expenditures -112.00 K
 Change In Working Capital -423.00 K
 Dividends Paid
 Cash Flow Delta 2.0 M
 End Period Cash Flow 10.0 M
 
INCOME STATEMENT REVENUE
 Total Revenue 19.9 M
 Forward Revenue 2.1 M
COSTS
 Cost Of Revenue 13.8 M
 Depreciation 363.0 K
 Depreciation and Amortization 363.0 K
 Research and Development 827.0 K
 Total Operating Expenses 16.9 M
PROFITABILITY
 Gross Profit 6.1 M
 EBITDA 5.9 M
 EBIT 5.5 M
 Operating Income 3.1 M
 Interest Income 53.0 K
 Interest Expense 201.0 K
 Net Interest Income -148.00 K
 Income Before Tax 5.3 M
 Tax Provision 1.4 M
 Tax Rate 26.255 %
 Net Income 3.9 M
 Net Income From Continuing Operations 3.9 M
EARNINGS
 EPS Estimate
 EPS Actual
 EPS Difference
 EPS Surprise
 Forward EPS 0.52
 
BALANCE SHEET ASSETS
 Total Assets 75.0 M
 Intangible Assets 7.2 M
 Net Tangible Assets 38.0 M
 Total Current Assets 53.7 M
 Cash and Short-Term Investments 11.0 M
 Cash 10.0 M
 Net Receivables 19.5 M
 Inventory 22.4 M
 Long-Term Investments 60.0 K
LIABILITIES
 Accounts Payable 5.2 M
 Short-Term Debt 4.2 M
 Total Current Liabilities 14.6 M
 Net Debt 8.5 M
 Total Debt 19.3 M
 Total Liabilities 29.8 M
EQUITY
 Total Equity 45.2 M
 Retained Earnings 45.2 M
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 14.14
 Shares Outstanding 3.197 M
 Revenue Per-Share 6.24
VALUATION
 Market Capitalization 152.1 M
 Enterprise Value 160.4 M
 Enterprise Multiple 27.172
Enterprise Multiple QoQ -27.588 %
Enterprise Multiple YoY -21.74 %
Enterprise Multiple IPRWA high: 210.697
median: 67.577
mean: 66.828
PDEX: 27.172
low: -182.088
 EV/R 8.042
CAPITAL STRUCTURE
 Asset To Equity 1.659
 Asset To Liability 2.518
 Debt To Capital 0.3
 Debt To Assets 0.258
Debt To Assets QoQ 47.38 %
Debt To Assets YoY -13.234 %
Debt To Assets IPRWA high: 1.319
median: 0.307
mean: 0.282
PDEX: 0.258
low: 0.003
 Debt To Equity 0.428
Debt To Equity QoQ 63.479 %
Debt To Equity YoY -20.991 %
Debt To Equity IPRWA high: 2.015
median: 0.573
mean: 0.503
PDEX: 0.428
low: -0.582
PRICE-BASED VALUATION
 Price To Book (P/B) 3.364
Price To Book QoQ 12.173 %
Price To Book YoY -29.429 %
Price To Book IPRWA high: 20.69
mean: 4.006
PDEX: 3.364
median: 3.093
low: -9.075
 Price To Earnings (P/E)
Price To Earnings QoQ
Price To Earnings YoY
Price To Earnings IPRWA
 PE/G Ratio
 Price To Sales (P/S) 7.623
Price To Sales QoQ 13.933 %
Price To Sales YoY -21.083 %
Price To Sales IPRWA high: 74.697
mean: 19.683
median: 14.423
PDEX: 7.623
low: 0.182
FORWARD MULTIPLES
Forward P/E 84.712
Forward PE/G
Forward P/S 72.938
EFFICIENCY OPERATIONAL
 Operating Leverage 11.689
ASSET & SALES
 Asset Turnover Ratio 0.291
Asset Turnover Ratio QoQ -1.427 %
Asset Turnover Ratio YoY 4.051 %
Asset Turnover Ratio IPRWA high: 0.561
PDEX: 0.291
mean: 0.153
median: 0.113
low: 0.0
 Receivables Turnover 1.068
Receivables Turnover Ratio QoQ 3.346 %
Receivables Turnover Ratio YoY 5.271 %
Receivables Turnover Ratio IPRWA high: 3.497
mean: 1.482
median: 1.415
PDEX: 1.068
low: 0.24
 Inventory Turnover 0.627
Inventory Turnover Ratio QoQ 5.011 %
Inventory Turnover Ratio YoY 16.176 %
Inventory Turnover Ratio IPRWA high: 3.533
mean: 0.875
median: 0.726
PDEX: 0.627
low: 0.012
 Days Sales Outstanding (DSO) 85.436
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 208.009
Cash Conversion Cycle Days QoQ -1.087 %
Cash Conversion Cycle Days YoY -1.945 %
Cash Conversion Cycle Days IPRWA high: 648.716
PDEX: 208.009
mean: 130.722
median: 108.208
low: -188.101
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 0.511
 CapEx To Revenue -0.006
 CapEx To Depreciation -0.309
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 59.5 M
 Net Invested Capital 63.7 M
 Invested Capital 63.7 M
 Net Tangible Assets 38.0 M
 Net Working Capital 39.1 M
LIQUIDITY
 Cash Ratio 0.75
 Current Ratio 3.67
Current Ratio QoQ -8.97 %
Current Ratio YoY 34.59 %
Current Ratio IPRWA high: 12.603
PDEX: 3.67
mean: 2.279
median: 2.204
low: 0.303
 Quick Ratio 2.142
Quick Ratio QoQ -4.874 %
Quick Ratio YoY 48.008 %
Quick Ratio IPRWA high: 8.924
PDEX: 2.142
mean: 1.687
median: 1.392
low: 0.248
COVERAGE & LEVERAGE
 Debt To EBITDA 3.275
 Cost Of Debt 0.981 %
 Interest Coverage Ratio 27.567
Interest Coverage Ratio QoQ 26.653 %
Interest Coverage Ratio YoY 41.282 %
Interest Coverage Ratio IPRWA high: 300.909
PDEX: 27.567
mean: 24.616
median: 9.328
low: -568.3
 Operating Cash Flow Ratio 0.219
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 33.043
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate 20.433 %
 Revenue Growth 6.891 %
Revenue Growth QoQ 859.749 %
Revenue Growth YoY 86.344 %
Revenue Growth IPRWA high: 61.8 %
PDEX: 6.891 %
median: -0.442 %
mean: -2.887 %
low: -74.909 %
 Earnings Growth
Earnings Growth QoQ
Earnings Growth YoY
Earnings Growth IPRWA
MARGINS
 Gross Margin 30.743 %
Gross Margin QoQ -0.094 %
Gross Margin YoY -7.665 %
Gross Margin IPRWA high: 93.08 %
median: 58.684 %
mean: 57.327 %
PDEX: 30.743 %
low: -35.079 %
 EBIT Margin 27.776 %
EBIT Margin QoQ 68.913 %
EBIT Margin YoY 0.769 %
EBIT Margin IPRWA high: 240.7 %
PDEX: 27.776 %
median: 14.538 %
mean: 12.3 %
low: -936.333 %
 Return On Sales (ROS) 15.51 %
Return On Sales QoQ -11.179 %
Return On Sales YoY -43.731 %
Return On Sales IPRWA high: 34.917 %
PDEX: 15.51 %
median: 12.048 %
mean: 10.696 %
low: -1069.0 %
CASH FLOW
 Free Cash Flow (FCF) 1.5 M
 Free Cash Flow Yield 1.0 %
Free Cash Flow Yield QoQ -63.316 %
Free Cash Flow Yield YoY 193.255 %
Free Cash Flow Yield IPRWA high: 5.328 %
PDEX: 1.0 %
mean: 0.702 %
median: 0.569 %
low: -48.467 %
 Free Cash Growth -55.317 %
Free Cash Growth QoQ -216.804 %
Free Cash Growth YoY -50.713 %
Free Cash Growth IPRWA high: 295.958 %
mean: -38.164 %
median: -50.328 %
PDEX: -55.317 %
low: -327.794 %
 Free Cash To Net Income 0.386
 Cash Flow Margin 16.036 %
 Cash Flow To Earnings 0.812
VALUE & RETURNS
 Economic Value Added 0.04
 Return On Assets (ROA) 5.739 %
Return On Assets QoQ 66.059 %
Return On Assets YoY 9.21 %
Return On Assets IPRWA high: 8.267 %
PDEX: 5.739 %
mean: 1.419 %
median: 1.093 %
low: -71.084 %
 Return On Capital Employed (ROCE) 9.183 %
 Return On Equity (ROE) 0.087
Return On Equity QoQ 65.867 %
Return On Equity YoY -6.13 %
Return On Equity IPRWA high: 0.619
PDEX: 0.087
mean: 0.036
median: 0.021
low: -0.992
 DuPont ROE 9.07 %
 Return On Invested Capital (ROIC) 6.415 %
Return On Invested Capital QoQ 45.829 %
Return On Invested Capital YoY -0.45 %
Return On Invested Capital IPRWA high: 12.45 %
PDEX: 6.415 %
mean: 2.364 %
median: 1.401 %
low: -17.565 %

Six-Week Outlook

Momentum indicators point toward continued upside, led by a bullish MACD crossover, increasing DI+, and a rising RSI that still sits near neutral — conditions that favor continuation toward higher recognition of the company’s underlying earnings power. The negative but rising MRO indicates room for mean reversion to higher prices. Short‑term risk centers on price testing the upper Bollinger band near current levels, where intermittent pullbacks could appear before trend continuation. Overall, expect asymmetric upside potential subject to normal intra‑trend volatility and periodic consolidation over the next six weeks.

About Pro-Dex, Inc.

Pro-Dex, Inc. (NASDAQ:PDEX) designs and manufactures powered surgical instruments for medical device original equipment manufacturers globally. With a focus on the orthopedic, thoracic, and craniomaxillofacial markets, Pro-Dex produces autoclavable, battery-powered, and electric surgical drivers and shavers. These instruments find applications in hospitals, medical engineering labs, and scientific research facilities. Beyond surgical tools, Pro-Dex offers engineering, quality, and regulatory consulting services, ensuring comprehensive support to its clients. Additionally, the company manufactures and distributes rotary air motors for various industrial applications. Founded in 1978, Pro-Dex maintains its headquarters in Irvine, California, where it continues to innovate and deliver high-quality products to the medical and industrial sectors.



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