Pro-Dex, Inc. (PDEX)
Pro-Dex, Inc. specializes in designing, developing, and manufacturing powered surgical instruments for medical device OEMs. Their focus is on orthopedic, thoracic, and craniomaxillofacial markets, offering both products and related services.
Company Overview
Pro-Dex, Inc. is a specialized medical device manufacturer focusing on powered surgical instruments, offering a compelling investment opportunity due to its high profit margin of 15.7%, strategic market positioning, and innovative product offerings within the orthopedic and related surgical fields.
Investment Thesis
Pro-Dex presents a compelling investment opportunity due to its specialized market position and strong financial performance. With a P/E ratio of 11.31 and a healthy profit margin of 15.7%, the company demonstrates efficient profitability. The increasing demand for minimally invasive surgical procedures, coupled with Pro-Dex's focus on innovative powered surgical instruments, positions it for sustained growth. Key value drivers include expanding its product offerings within the orthopedic and craniomaxillofacial markets and leveraging its engineering and regulatory consulting services to deepen OEM partnerships. The company's beta of -0.02 indicates low volatility, making it an attractive option for risk-averse investors seeking stable returns within the healthcare sector. Upcoming product launches and strategic partnerships could further accelerate revenue growth and enhance shareholder value.
Key Highlights
- Market Cap of $0.13B reflects the company's current valuation and growth potential within the medical device market.
- P/E Ratio of 11.31 indicates that the company is potentially undervalued compared to its earnings.
- Profit Margin of 15.7% demonstrates strong profitability and efficient operations.
- Gross Margin of 28.3% showcases the company's ability to manage production costs effectively.
- Beta of -0.02 suggests low volatility compared to the overall market, making it a relatively stable investment.
Competitors
Strengths
- Specialized expertise in powered surgical instruments.
- Strong relationships with medical device OEMs.
- High profit margin of 15.7%.
- Comprehensive engineering and regulatory consulting services.
Weaknesses
- Relatively small market capitalization.
- Dependence on a limited number of OEM customers.
- Limited geographic diversification.
- Potential vulnerability to changes in healthcare regulations.
Catalysts
- Upcoming: New product launches in the orthopedic and craniomaxillofacial markets planned for late 2026.
- Ongoing: Increasing demand for minimally invasive surgical procedures driving growth.
- Ongoing: Expansion of engineering and regulatory consulting services to attract new OEM partners.
- Upcoming: Potential strategic acquisitions to expand product offerings and market reach.
Risks
- Potential: Competition from larger medical device companies with greater resources.
- Potential: Technological obsolescence requiring continuous innovation and investment.
- Ongoing: Changes in healthcare regulations and reimbursement policies impacting profitability.
- Potential: Economic downturns affecting healthcare spending and demand for surgical procedures.
- Ongoing: Dependence on key OEM customers; loss of a major customer could significantly impact revenue.
Growth Opportunities
- Expanding Product Line in Orthopedics: Pro-Dex has the opportunity to expand its line of powered surgical instruments specifically for orthopedic procedures. The global orthopedic device market is projected to reach significant value by 2028. By developing innovative instruments for joint replacement, sports medicine, and trauma surgeries, Pro-Dex can capture a larger share of this growing market. This expansion can be achieved through internal R&D and strategic acquisitions of complementary technologies.
- Penetrating the Craniomaxillofacial Market: The craniomaxillofacial (CMF) device market is another high-growth area for Pro-Dex. The global CMF market is expected to see substantial growth, driven by increasing demand for reconstructive surgeries and trauma care. Pro-Dex can leverage its existing expertise in powered surgical instruments to develop specialized tools for CMF procedures, targeting both reconstructive and aesthetic applications. Strategic partnerships with CMF surgeons and hospitals will be crucial for market penetration.
- Leveraging Engineering and Regulatory Consulting Services: Pro-Dex's engineering and regulatory consulting services provide a significant growth opportunity. Medical device companies often require specialized expertise to navigate the complex regulatory landscape and develop innovative products. By expanding its consulting services, Pro-Dex can generate additional revenue streams and strengthen its relationships with OEM partners. This includes offering services related to FDA submissions, quality system compliance, and product design optimization.
- Geographic Expansion into Emerging Markets: Pro-Dex can pursue geographic expansion into emerging markets, where healthcare spending is increasing and demand for advanced surgical technologies is growing. Countries in Asia-Pacific and Latin America offer significant growth potential. Establishing strategic partnerships with local distributors and healthcare providers will be essential for successful market entry. Adapting product offerings to meet the specific needs of these markets will also be crucial.
- Strategic Acquisitions of Complementary Technologies: Pro-Dex can pursue strategic acquisitions of companies with complementary technologies or product lines. This can accelerate its growth and expand its market reach. Potential acquisition targets include companies specializing in surgical navigation systems, robotic surgery platforms, or advanced materials for medical devices. These acquisitions can enhance Pro-Dex's competitive position and create synergies across its existing business units.
Opportunities
- Expanding product line in orthopedics and craniomaxillofacial markets.
- Geographic expansion into emerging markets.
- Strategic acquisitions of complementary technologies.
- Increasing demand for minimally invasive surgical procedures.
Threats
- Competition from larger medical device companies.
- Technological obsolescence.
- Changes in healthcare regulations and reimbursement policies.
- Economic downturns affecting healthcare spending.
Competitive Advantages
- Specialized expertise in powered surgical instrument design and manufacturing.
- Strong relationships with medical device OEMs.
- Comprehensive service offerings including engineering and regulatory consulting.
- Proprietary technology and intellectual property in surgical instrument design.
About
Founded in 1978 and headquartered in Irvine, California, Pro-Dex, Inc. has established itself as a key player in the medical device industry. The company designs, develops, and manufactures powered surgical instruments for medical device original equipment manufacturers (OEMs) worldwide. Pro-Dex's core offerings include autoclavable, battery-powered and electric, and multi-function surgical drivers and shavers. These instruments are primarily utilized in orthopedic, thoracic, and craniomaxillofacial surgical procedures. Beyond its instrument manufacturing, Pro-Dex provides comprehensive engineering, quality, and regulatory consulting services, adding value for its OEM partners. Additionally, the company manufactures and sells rotary air motors to a diverse range of industries, diversifying its revenue streams. Pro-Dex's commitment to innovation and quality has enabled it to build strong relationships with leading medical device companies, solidifying its position in the competitive surgical instrument market. The company's evolution from a rotary air motor manufacturer to a specialized surgical instrument provider demonstrates its adaptability and strategic focus on high-growth sectors within the medical device landscape.
What They Do
- Designs and develops powered surgical instruments.
- Manufactures autoclavable, battery-powered, and electric surgical drivers.
- Produces multi-function surgical shavers.
- Serves the orthopedic market with specialized surgical tools.
- Provides instruments for thoracic surgical procedures.
- Offers solutions for craniomaxillofacial surgeries.
- Delivers engineering, quality, and regulatory consulting services.
- Manufactures and sells rotary air motors to various industries.
Business Model
- Designs and manufactures powered surgical instruments for medical device OEMs.
- Generates revenue through the sale of surgical instruments and rotary air motors.
- Provides engineering, quality, and regulatory consulting services for additional income.
- Focuses on building long-term relationships with medical device companies.
Industry Context
Pro-Dex operates within the medical instruments and supplies industry, a sector characterized by continuous innovation and increasing demand for advanced surgical technologies. The global medical devices market is projected to reach significant growth in the coming years, driven by an aging population, rising healthcare expenditures, and technological advancements. Pro-Dex competes with companies that offer surgical instruments and related services. Key competitors include APYX, CGTX, GLSI, IXHL, and LUCD. Pro-Dex differentiates itself through its focus on powered surgical instruments and its comprehensive service offerings, including engineering and regulatory consulting.
Key Customers
- Medical device original equipment manufacturers (OEMs).
- Hospitals and surgical centers using their instruments.
- Various industries purchasing rotary air motors.
- Orthopedic surgeons and medical professionals.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $19M | $5M | $0.00 |
| Q2 2025 | $17M | $1M | $0.00 |
| Q1 2025 | $17M | $3M | $0.00 |
| Q4 2024 | $17M | $2M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Pro-Dex, Inc. (PDEX) stock price: $38.72 (+1.00, +2.65%)
Latest News
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12 Health Care Stocks Moving In Monday's Intraday Session
benzinga · Oct 13, 2025
Technical Analysis
Rationale
AI-generated technical analysis for PDEX including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for PDEX.
Make a Prediction
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Current price: $38.72
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PDEX.
Price Targets
Wall Street price target analysis for PDEX.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 6/100
Revenue increased 23.7% YoY, reflecting moderate but steady business growth.
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Gross Margin 6/100
Gross margin of 28.3% is acceptable but leaves limited room for R&D and marketing investment.
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Operating Leverage 6/100
Revenue growth is driving operating leverage, meaning profits can grow faster than costs.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 8/100
Moderate net insider buying of +$0.53M suggests management sees value at current price levels.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates PDEX's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Pro-Dex, Inc. do?
Pro-Dex, Inc. specializes in the design, development, and manufacturing of powered surgical instruments for medical device original equipment manufacturers (OEMs). Their primary focus is on providing autoclavable, battery-powered, and electric surgical drivers and shavers used in orthopedic, thoracic, and craniomaxillofacial procedures. Additionally, Pro-Dex offers engineering, quality, and regulatory consulting services to support its OEM partners, and manufactures rotary air motors for various industries. The company operates as a key supplier to the medical device industry, providing specialized instruments and services.
Is PDEX stock a good buy?
PDEX stock presents a potentially attractive investment opportunity, supported by its specialized market position and strong financial metrics. With a P/E ratio of 11.31 and a profit margin of 15.7%, the company demonstrates efficient profitability. The increasing demand for minimally invasive surgical procedures and Pro-Dex's focus on innovative powered surgical instruments position it for sustained growth. However, investors should consider the company's relatively small market capitalization and dependence on key OEM customers. A balanced analysis of these factors is crucial before making an investment decision.
What are the main risks for PDEX?
Pro-Dex faces several key risks, including competition from larger medical device companies with greater resources and broader product portfolios. Technological obsolescence is another significant risk, requiring continuous innovation and investment in R&D to maintain a competitive edge. Changes in healthcare regulations and reimbursement policies could also negatively impact the company's profitability. Additionally, Pro-Dex's dependence on a limited number of OEM customers exposes it to the risk of revenue loss if a major customer terminates its relationship. Careful monitoring of these risks is essential for investors.
Is PDEX a good stock to buy?
Whether PDEX is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the PDEX MoonshotScore?
The MoonshotScore for PDEX is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is PDEX data updated?
PDEX stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to PDEX is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for PDEX?
Growth catalysts for Pro-Dex, Inc. (PDEX) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Pro-Dex, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are PDEX's main competitors?
Pro-Dex, Inc. (PDEX) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether PDEX has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about PDEX?
Wall Street analyst coverage for PDEX includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is PDEX's market cap?
Market capitalization (market cap) for PDEX is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows PDEX's current market cap alongside enterprise value and other valuation metrics.
How has PDEX stock performed recently?
PDEX's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing PDEX's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in PDEX?
Key risk categories for PDEX include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures PDEX's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling PDEX?
Insider trading activity for PDEX tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is PDEX a good stock for beginners?
Pro-Dex, Inc. (PDEX) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is PDEX for first-time investors?
Every stock carries risk, including Pro-Dex, Inc. (PDEX). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like PDEX.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Market projections are based on industry reports and analyst estimates.
- Competitive landscape analysis is based on publicly available information.