Pro-Dex: Crash After Strong Earnings Leads To A Buying Opportunity

Edward Vranic, CFA
6.46K Followers
(8min)

Summary

  • Pro-Dex, Inc. experienced a 32% stock crash despite record Q3 2025 performance, presenting a buying opportunity for risk-tolerant investors.
  • Q3 2025 revenue grew 22% YoY, with gross profit up 45% due to favorable product mix; operating income increased 64%.
  • PDEX's PEG ratio of 0.27x indicates undervaluation compared to the sector median, despite higher valuation multiples in other metrics.
  • Revenue concentration risk exists but is mitigated by strong, established customer relationships and continued growth in next-generation products.
  • Apparent slowing growth YoY could be a mirage as Q3 2024 was strong. Sequential growth from prior quarters shows Q3 2025 was a significant step-up.
Female doctor arranging surgical equipment

Morsa Images

Pro-Dex, Inc. (PDEX) is a contract manufacturer, primarily designing, developing, and manufacturing surgical devices for the medical device industry. The stock has been on a wild ride over the last year, trading as high as $70 and as low as $16. Despite a record performance for

This article was written by

6.46K Followers
I am a private investor based out of Toronto, Canada and I have been investing since 2003. After 8 years in Corporate Finance with a Canadian Telecom company I have decided to dedicate myself full-time to the capital markets. I write on Seeking Alpha to demonstrate my financial analysis and writing skills across a variety of industries and to take advantage of any story-based trading opportunity that may arise. My passion and greatest depth of knowledge is on Canadian small cap stocks and I consider my blog posts to be some of my best work. I am interested in any freelance opportunities that may arise outside of Seeking Alpha on Canadian or American listed stocks. Currently challenging myself to do a high volume of quality analysis.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PDEX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PDEX Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PDEX

Related Stocks

SymbolLast Price% Chg
PDEX
--