Pro-Dex

PDEX

Medical - Instruments & Supplies · Healthcare

Price

$65.67

-0.64 (-0.97%)

Market Cap

$209.7M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Good

Stability

Strong

Valuation

Mixed

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Share count falling — buybacks

−14.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 3.9M (2021) → 3.4M (2025)

Winston Score History

The full picture

Pro-Dex, Inc. makes small, handheld surgical tools — mainly powered screwdrivers and drills used by surgeons during orthopedic and spine procedures. Its customers are large medical device companies that put their own brand names on Pro-Dex's tools before selling them to hospitals. This makes Pro-Dex a contract manufacturer, meaning it builds products designed to someone else's specifications rather than selling directly to end users.

Pro-Dex earns revenue by selling finished devices to a small number of medical OEM (original equipment manufacturer) customers under long-term supply agreements. The company operates primarily in the United States and is quite small, with annual revenues typically under $75 million. Its main competitive strength is deep engineering expertise in miniaturized, battery-powered surgical instruments, but its biggest risk is customer concentration — losing even one major customer could significantly hurt sales. Growth depends on winning new OEM contracts and expanding the range of procedures its tools are used in.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+23.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$4M/ year

↑ Rising (+14% vs prior year)

5.5% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

45.8%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$11M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Pro-Dex is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

30.7%

Modest — 30.7% gross margin

Profit after running costs

Operating Margin

15.5%

Healthy — 15.5% operating margin

Return on the money invested

ROCE

16.7%

Strong — 16.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+16.4%

Fast-growing sales (+16.4% YoY)

Profit growth

EPS YoY

+29.4%

Earnings growing fast (+29.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

61%

Modest — 61% of profit becomes cash

Spare cash per sale

FCF Margin

9.3%

Modest free cash flow (9.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.43

Conservative — low debt load (0.43)

Covers its interest

Interest Cover

14.05x

Comfortably covers interest (14.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

17.7x

Fair value — P/E 17.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-3.3

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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