Pro-Dex Inc (NASDAQ:PDEX): A Strong Candidate for Little Book Investors

Pro-Dex Inc (NASDAQ:PDEX) is a medical device manufacturer specializing in rotary drive surgical and dental instruments. The company’s strong financial metrics make it an interesting candidate for investors following the principles outlined in The Little Book That Makes You Rich by Louis Navellier. The book emphasizes growth investing strategies, focusing on companies with accelerating earnings, expanding margins, and strong cash flow—qualities that PDEX exhibits.

Why PDEX Fits the Little Book Criteria

Navellier’s eight rules for selecting superior growth stocks highlight key financial strengths. Here’s how PDEX measures up:

1. Positive Earnings Revisions – Analysts have raised EPS estimates for the next quarter by 9.30% over the past three months, signaling confidence in future performance.
2. Positive Earnings Surprises – PDEX has beaten EPS estimates in three of the last four quarters, with an average surprise of 48.25%.
3. Increasing Sales Growth – Revenue grew 26.44% year-over-year, with quarterly sales up 33.40% compared to the same period last year.
4. Expanding Operating Margin – Operating margin improved by 29.19% over the past year, indicating better profitability.
5. Strong Cash Flow – Free cash flow surged 142.74% year-over-year, reflecting financial flexibility.
6. Earnings Growth – EPS increased 168.00% year-over-year, with quarterly EPS up 335.71%.
7. Positive Earnings Momentum – The latest quarterly EPS growth (335.71%) far exceeds the same quarter’s growth from a year ago (-41.67%).
8. High Return on Equity – PDEX’s ROE stands at 21.21%, well above the 10% threshold Navellier recommends.

Fundamental Analysis Summary

Our fundamental analysis report assigns PDEX a rating of 6 out of 10, highlighting strong profitability and financial health. Key takeaways include:

• Profitability: High ROE (21.21%) and ROIC (18.51%) outperform most industry peers.
• Valuation: While the P/E ratio (32.68) appears high, growth prospects justify the premium.
• Growth: Revenue and earnings are accelerating, with expected EPS growth of 97.88% in coming years.

For investors seeking similar high-growth opportunities, our pre-built screen identifies stocks meeting Navellier’s criteria.