Pro-Dex, Inc. — Earnings Quality Grade F
PDEX · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 90 days, change -4 days YoY
AR growth 18.3% vs revenue growth 23.7%
Revenue grew 23.7% but CFFO declined -127.0%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory growth 45.5% far exceeds COGS 19.8%, margin rising. Fraud signal
Small-cap context: Inventory ratios on a small base are noisy; a single product launch can move them sharply.
CapEx growth 26.8% vs revenue 23.7%. Normal
SG&A/Gross Profit = 26.6%, excellent (<30%)
Gross margin 29.3%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = -0.19. Only -19% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = 17.4%. Exceeds 10%
Cash $0.0B covers only 43% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 0% of equity. Manageable
Debt/EBITDA = 1.2x. Healthy
Other assets 4.8% vs revenue 23.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -52% YoY. Normal
Manipulation Score
M-Score = -1.77 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25