MeritValue

PRO DEX INC

PDEXdata completeness 88%15 fiscal years on file
The thesis, from the filings

PRO DEX INC earns about 15% on invested capital, and has bought back 15% of its shares over 5 years. The applicable estimate puts fair value near $19.02 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$38M1$42M1$46.1M2$53.8M3$66.6M3
Net income$6.17M4$4.57M4$7.07M5$2.13M6$8.98M6
Operating cash flow−$2.08M7−$847,0007$5.46M8$6.22M9−$1.68M9
Capital expenditure$1.77M10$1.64M10———
Free cash flow (derived)−$3.85M7−$2.49M7———
Total debt$12.8M11$13.6M12$12.8M13$12M14$15.4M15
Cash & equivalents$3.72M16$849,00017$2.94M18$2.63M19$419,00019
Diluted shares3.9M3.8M3.6M3.6M3.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$108.98
your share of equity
Profit it earned you last year
$26.71
Free cash flow it threw off
—
Debt you’d be carrying
$45.91

10 shares is a claim on $108.98 of net worth that earned you $26.71 last year, against $45.91 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
15% avg · 5y
FY21 21%FY22 13%FY23 18%FY24 5%FY25 17%

It earned an average 15% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−15% shares · 5y

Share count is down 15% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 20% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$19.02
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$6.17M
  • growthAssumed0.0%
Graham Number
$25.59
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0001079973-23-001429 (Revenues)
  2. 10-K · period ending 2023-06-30 · accession 0001553350-24-000079 (Revenues)
  3. 10-K · period ending 2024-06-30 · accession 0001079973-25-001426 (Revenues)
  4. 10-K · period ending 2021-06-30 · accession 0001079973-23-001429 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0001553350-24-000079 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0001079973-25-001426 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-30 · accession 0001079973-23-001429 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0001553350-24-000079 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0001079973-25-001426 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-30 · accession 0001553350-22-000745 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-06-30 · accession 0001553350-21-000795 (LongTermDebt)
  12. 10-K · period ending 2022-06-30 · accession 0001553350-22-000745 (LongTermDebt)
  13. 10-K · period ending 2023-06-30 · accession 0001079973-23-001429 (LongTermDebt)
  14. 10-K · period ending 2024-06-30 · accession 0001553350-24-000079 (LongTermDebt)
  15. 10-K · period ending 2025-06-30 · accession 0001079973-25-001426 (LongTermDebt)
  16. 10-K · period ending 2021-06-30 · accession 0001553350-22-000745 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-06-30 · accession 0001079973-23-001429 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0001553350-24-000079 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0001079973-25-001426 (CashAndCashEquivalentsAtCarryingValue)