- Pro-Dex is a manufacturer of surgical tools for the orthopedic, thoracic, and maxocranial facial markets but the company can provide turnkey solutions across numerous industry sectors.
- After 2 strong quarters and 28% revenue growth in FY20 to $38.3m, Pro-Dex stock currently trades at $29 and PE is 19x.
- 2 new product launches have given Pro-Dex strong growth momentum but it is not clear how this will be sustained.
- I suspect the share price may correct if the company fails to outperform in Q121 (3m to September '20).
- If Pro-Dex can realise its potential with new contract wins whilst renewing its contract with its largest customer, I would consider a price <$25 an attractive entry point.
For further details see:
Pro-Dex: Overvalued At Current Price Unless New Revenue Streams Are Found