Precision Optics Corporation Inc. Common stock (POCI)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and sell at a discount to intrinsic value. Precision Optics does not yet qualify. It designs specialized optical and illumination systems, including endoscopes and medical cameras, for minimally invasive surgery. The niche is attractive, and revenue is moving in the right direction: in fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $8.7M versus $4.2M in fiscal Q3 2025, the quarter ended 2025-03-31. For fiscal 2026, the year ended 2026-06-30, revenue was $31.5M, up from $19.1M in fiscal 2025, the year ended 2025-06-30. Losses have also narrowed: the fiscal Q3 2026 net loss was $108,283, or $0.01 per diluted share, compared with a $2.1M net loss, or $0.30 per share, in fiscal Q3 2025. Fiscal 2026 net loss was $3.6M, or $0.43 per share, versus $5.8M, or $0.85 per share, in fiscal 2025. But the company has lost money in each of the last four years, so FairStock's Lynch screen assigns no category. The balance sheet carries only modest debt—D/E of 0.21—but trailing free cash flow is -$1.9M, a -3.7% FCF yield, and the Piotroski F-Score is 4/9 while the Altman Z-Score is 0.35, suggesting financial fragility. At the $4.56 close on 2026-10-13, the market cap is $50M. The P/E is -7.12 and P/B is 2.48. Paying 2.5 times book for a cash-burning company is not a Graham bargain. The latest quarter's -1.24% margin is close to breakeven, which is encouraging. If revenue scales and costs stay controlled, profits could follow. Until then, this is a speculative turnaround, not a proven compounder.

In plain English: Precision Optics makes special lenses, cameras, and lighting systems used in medical scopes and surgical imaging. Sales are growing and losses are getting smaller, but the company still loses money and spends more cash than it brings in. At $4.56, the price does not look cheap because there are no profits yet to support it.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer