One-glance verdict
Overvalued
$0.89 our estimate vs market $4.43
Wall Street consensus: $8.00 (794.8% higher than our fair-value estimate)
395% above our estimate, beyond the bull case
Fundamentals snapshot
Precision Optics Corporation, Inc.
POCI · NCM · Healthcare · Medical Instruments & Supplies
Current price
$4.43
52-week range
$3.55 - $6.15
Market cap
$48.61M
Balance sheet
Healthy
-24.45x Concerning
Net cash $5.78M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 65.2% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -22.3% last year — the company lost money on shareholders' equity.
What this company does
Precision Optics Corporation, Inc.
Precision Optics Corporation designs and makes special lens and light systems, mostly for medical devices used in surgery. Their main customers are medical companies who then sell these tools to hospitals and doctors, meaning their money mostly comes from selling these high-tech parts to other businesses. This matters because it shows they are a key supplier for important medical equipment.
How the company got here
Precision Optics Corporation, Inc. was founded in 1982 and has since focused on creating specialized optical and illumination systems. The company's journey has been marked by a consistent effort to innovate in the field of medical imaging and precision optics. Over the years, they have built a reputation for developing sophisticated components used in critical applications, particularly within the healthcare sector. Their base in Littleton, Massachusetts, has been central to their operations and growth in the specialized manufacturing landscape.
What it actually does
Precision Optics Corporation designs, builds, and sells advanced optical and lighting systems. Think of them as the experts who create the tiny, powerful "eyes" and "lights" that go inside complex medical equipment. These aren't your everyday eyeglasses; they are highly specialized components that allow doctors to see inside the human body during surgery or diagnose conditions with incredible detail. They also make similar precision optical parts for defense and industrial uses, ensuring clarity and accuracy in demanding environments.
Medical Instrumentation Products
This is the core of Precision Optics' business, where they create specialized optical and illumination systems for the medical field. They produce items like endoscopes (tubes with cameras and lights used to look inside the body) and endocouplers (devices that connect cameras to endoscopes). They also develop custom imaging solutions, including miniature medical cameras and 3D endoscopes, which are crucial for minimally invasive surgeries. Hospitals and doctors rely on these products to perform procedures with greater precision and less disruption to the patient.
Components and Assemblies for Defense, Aerospace, and Industrial Customers
Beyond healthcare, Precision Optics also applies its optical expertise to other high-tech sectors. They manufacture and supply precision optical components and assembled systems to defense contractors, aerospace companies, and various industrial clients. These components are vital for applications requiring extreme accuracy and reliability, such as in surveillance equipment, aircraft systems, or specialized manufacturing tools. This diversification allows the company to leverage its core optical technology across a broader range of demanding markets.
What management is betting on now
Precision Optics is focused on advancing its capabilities in medical imaging technology, particularly for minimally invasive procedures. They are likely investing in research and development to create even smaller, higher-resolution cameras and illumination systems. The company aims to be a key partner for medical device companies looking for cutting-edge optical solutions. By continuing to innovate in this specialized niche, Precision Optics seeks to maintain its competitive edge and capture growth opportunities within the evolving healthcare landscape.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-342.97K
FY2025 Q2
$-816.63K
FY2025 Q3
$-2.00M
FY2025 Q4
$-615.46K
FY2026 Q4
$-1.08M
Revenue
$8.77M
Net income
$-103.79K
Diluted EPS
0.02
Operating cash flow
$-649.11K
Free cash flow
$-1.08M
Fetching…
Sources
Revenue
$8.71M
Net income
$-108.28K
Diluted EPS
-0.01
Operating cash flow
$-723.26K
Free cash flow
—
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Sources
Revenue
$7.37M
Net income
$-1.78M
Diluted EPS
-0.23
Operating cash flow
$-256.08K
Free cash flow
—
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Sources
Revenue
$6.68M
Net income
$-1.64M
Diluted EPS
-0.21
Operating cash flow
$78.23K
Free cash flow
—
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Sources
Revenue
$6.18M
Net income
$-1.40M
Diluted EPS
-0.19
Operating cash flow
$-569.24K
Free cash flow
$-615.46K
Fetching…
Sources
Revenue
$4.19M
Net income
$-2.10M
Diluted EPS
-0.30
Operating cash flow
$-1.87M
Free cash flow
$-2.00M
Fetching…
Sources
Revenue
$4.53M
Net income
$-969.68K
Diluted EPS
-0.15
Operating cash flow
$-786.81K
Free cash flow
$-816.63K
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Sources
Revenue
$4.20M
Net income
$-1.31M
Diluted EPS
-0.21
Operating cash flow
$-318.62K
Free cash flow
$-342.97K
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Sources
Is it cheap or expensive?
Fair value $0.89 vs current price $4.43
Wall Street consensus is the average analyst price target: $8.00 (794.8% higher than our fair-value estimate).
Our most-likely fair value is $0.89 a share — about 79.8% below today's price of $4.43, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $5.8M - more cash than debt. Interest coverage -24.5x.
Net debt
$-5.78M
Interest coverage
-24.45x
Precision Optics Corporation, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
POCI
BASELINE
Precision Optics Corporation, Inc.
Total debt $4.06M Interest coverage -24.45x This is the baseline the peer rows are being compared against.
What you should know
The case for and against POCI
2 Rewards
1 Risk
Rewards
-
Revenue grew 65.2% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -22.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
147.67x
P/B
2.39x
P/S
1.54x
EV/EBITDA
-12.99x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
17.2%
Operating margin
-1.2%
Net margin
-11.5%
ROE
-22.3%
ROA
-8.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.20x
Current ratio
2.28x
Quick ratio
1.79x
Total debt
$4.06M
Total cash
$9.84M
Growth
How the business has been compounding
Revenue TTM
$31.53M
Revenue 5Y CAGR
19.1%
EPS TTM
-0.43
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-1.55M
Free CF TTM
$-1.98M
FCF margin
-6.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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