ProDex Inc delivered a solid QQ3 2024 set of results with revenue of 14.29 million USD, representing a 9.28% year-over-year growth and a 13.54% quarter-over-quarter lift. The company posted a gross profit of 4.10 million USD and a gross margin of 28.7%, supported by strategic mix and favorable operating leverage. Operating income reached 2.21 million USD, yielding an operating margin of 15.5%, while net income was 0.655 million USD, or 4.6% net margin, and basic EPS of 0.19. EBITDA stood at 2.50 million USD (EBITDA margin of ~17.5%). The quarter also showcased meaningful operating cash flow (CFO) of 4.08 million USD and free cash flow of 3.96 million USD, underscoring durable cash generation for a small-cap healthcare supplier.
Liquidity remains robust, with cash and short-term investments totaling about 7.80 million USD and a healthy balance sheet characterized by a current ratio of 3.42 and a quick ratio of 2.05. Net debt stood at 9.82 million USD, while interest coverage was strong at 16.04x, supporting modest leverage (debt to equity 0.42, total debt 13.04 million USD). The company achieved a stabilizing working capital profile, evidenced by a 1.75 million USD increase in net working capital, which funded growth and inventory build for near-term demand. Trailing four-quarter revenue runs at approximately 49.46 million USD, highlighting a positive trajectory in a niche orthopedic/medical instrument market.
Despite these positives, the year-over-year net income declined by about 59.5%, reflecting non-operational factors or timing variances that warrant monitoring. The company’s valuation metrics show a price-to-sales around 4.24x and an enterprise value multiple near 28.2x, positioning PDEX as a mid-to-high multiple small-cap healthcare name with solid cash generation but limited scale in a competitive field. Investors should monitor order intake, customer concentration, and any potential ramp in research and development or regulatory costs that could affect margins.