Pro-Dex Inc. Common Stock (PDEX)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $6 million in annual free cash flow (3.5% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 30.9% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.27, providing financial flexibility
• Altman Z-Score of 6.8 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($32) with negative 60% margin of safety—limited downside protection

AI Analysis

Pro-Dex Inc. Common Stock is a micro-cap healthcare company valued at $162 million. The business generates $72 million in annual revenue with a 6.5% net margin and $6 million in free cash flow. From a quality standpoint, Pro-Dex shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 6.8 confirms fortress-level solvency. On valuation, the stock is attractively valued at 14.9x earnings, with trades above its Graham Number with a negative 60% margin. Growth dynamics show revenue growing at 11.1% and profit growth of 7.2%. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Pro-Dex's consistent 31% ROE at just 15x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $6 million in annual free cash flow (3.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer