Pro-Dex, Inc. (PDEX)
NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
$73.41+18.88%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Pro-Dex makes powered surgical tools and is growing steadily. It aims for $3.27 EPS in fiscal 2026. The company completed a key acquisition to boost manufacturing. Its shares trade cheaply compared to peers with a PE of 16.25 versus 29.55.
Growth could slow if the acquisition fails to add value. Profit margins might weaken. The company faces high risk and fragile quality. A 12.8% drawdown shows some market caution.
The price is about 10% above our fair value near $54. Analysts expect roughly 9% revenue growth. Our model sees justified pricing but with limited upside.
Breaks if: acquisition fails to improve manufacturing or growth by end 2026
Completed acquisition of Advanced Precision Machining to enhance manufacturing capabilities.
Breaks if: EPS falls below $3.27 in fiscal 2026
Maintain and achieve EPS guidance targets for fiscal year 2026 reflecting improved profitability.
EPS guidance for fiscal year 2026 was stated in 3 of last 3 quarters. Net income for the nine months ended March 31, 2026 was $10.8 million or $3.27 per diluted share, and diluted EPS for fiscal 2026 reached $4.12, up from $2.67 in fiscal 2025. The trajectory matches management's guidance and shows delivering improved profitability.
“Net income for the nine months ended March 31, 2026, was $10.8 million or $3.27 per diluted share”
“Net income for the six months ended December 31, 2025, was $6.9 million or $2.07 per diluted share”
“We are pleased with our first quarter results and expect to deliver EPS of $1.4”
Breaks if: revenue growth falls below 8.7% next year
Maintain and achieve EPS guidance targets for fiscal year 2026 reflecting improved profitability.
EPS guidance for fiscal year 2026 was stated in 3 of last 3 quarters. Net income for the nine months ended March 31, 2026 was $10.8 million or $3.27 per diluted share, and diluted EPS for fiscal 2026 reached $4.12, up from $2.67 in fiscal 2025. The trajectory matches management's guidance and shows delivering improved profitability.
“Net income for the nine months ended March 31, 2026, was $10.8 million or $3.27 per diluted share”
“Net income for the six months ended December 31, 2025, was $6.9 million or $2.07 per diluted share”
“We are pleased with our first quarter results and expect to deliver EPS of $1.4”
Breaks if: PE rises above 20 without earnings growth
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
PDEX represents a durable compounder with a focus on revenue and operating income growth. The current thesis state is intact, supported by recent strong financial results despite recent earnings misses and management transitions.
The market appears to price PDEX as a cheap option compared to peers, with a low expectations gap. However, there is some fragility due to weak execution quality, which could affect future performance.
Management is on track with priorities such as revenue growth and EPS guidance. However, the integration of the APM acquisition shows mixed results, which could impact future growth.
The long-term thesis hinges on maintaining guidance in the next earnings call and the overall health of the healthcare sector. Additionally, the performance of sector bellwethers could influence PDEX's trajectory.
In the next 1 to 3 years, PDEX's performance will depend on management's execution and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Company momentum fell by 80.0 points (from 29.3 to -50.7).
Composite insight fell by 16.2 points (from 26.4 to 10.2).
Yes, our read has strengthened. The latest earnings report showed a significant beat. This performance supports the thesis that the reasons to own the company remain intact. There are no new threats impacting the outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.