Precision Optics Corporation Inc

Precision Optics Corporation Inc has a price-to-book ratio of 4.46, significantly above the industry median of 2.3, indicating a premium valuation relative to its tangible book value. The company's liquidity position is characterized by a current ratio of 1.64, which is below the industry median of 2.1, suggesting potential short-term liquidity constraints. The company's free cash flow is negative at -376,040 USD, and its operating cash flow is also negative at -1,707,000 USD, indicating cash flow challenges.

The company's profitability metrics are weak, with a return on equity of -2.82% and a return on assets of -1.74%, both well below the industry median of 8.5% and 6.2%, respectively. The operating margin is -4.93%, compared to an industry median of 12.3%, highlighting significant underperformance in cost control and operational efficiency. The company's gross margin of 35.45% is also below the industry median of 42.1%, indicating inefficiencies in production or pricing.

The company's revenue is concentrated in the healthcare services and equipment segment, with no disclosed geographic diversification. The company's exposure to a single business line increases its vulnerability to sector-specific risks. The company's revenue concentration in a single segment is a concern, as it lacks diversification to buffer against market fluctuations.

The company's revenue growth is negative, with a year-over-year decline of 52.4% in the most recent fiscal year. The company's outlook for the next fiscal year is also negative, with an expected revenue decline of 15%. The company's capital expenditure of -282,080 USD indicates a reduction in investment in long-term assets, which may affect future growth.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could impact its ability to meet short-term obligations. The company's debt-to-equity ratio of 0.25 is below the industry median of 0.4, suggesting a relatively conservative capital structure. However, the company's negative operating cash flow and free cash flow raise concerns about its ability to service debt and fund operations.

Recent events include a significant decline in revenue and earnings, with the last actual EPS at -11.25 USD and revenue at 2,477,000 USD. The company's financial performance has deteriorated, and there are no recent filings or transcripts indicating strategic initiatives to address these challenges.

Revenue grew at a 15.6% compound annual rate over the four-year period ending in fiscal 2007.

The company maintains a debt-to-equity ratio of 0.15, which is below the cohort median of 0.20.

Cash conversion metrics are rated best-in-class at 5.38, significantly exceeding the cohort median of 0.84.

Dilution risk is assessed as low, suggesting limited immediate pressure on existing shareholder equity value.

The current ratio of 1.64 indicates adequate short-term liquidity to cover immediate operational obligations.

Credit risk is flagged as high, reflecting significant concerns regarding the company's financial stability.

Revenue $6.7M, +59,2% YoY; Operating income −27,9% YoY.

• ▍Revenue $6.7M, +59,2% YoY
• ▍Operating income −27,9% YoY
• ▍Net income −24,8% YoY
• ▍Free cash flow −45,4% YoY
• ▍Net margin -24.5%

Revenue $6.2M, +31,1% YoY; Operating income +0,0% YoY.

• ▍Revenue $6.2M, +31,1% YoY
• ▍Operating income +0,0% YoY
• ▍Net income +0,6% YoY
• ▍Free cash flow −2,6% YoY
• ▍Net margin -22.7%

Revenue $4.2M, −20,1% YoY; Operating income −688,4% YoY.

• ▍Revenue $4.2M, −20,1% YoY
• ▍Operating income −688,4% YoY
• ▍Net income −561,3% YoY
• ▍Free cash flow −473,2% YoY
• ▍Net margin -50.1%

Revenue $4.5M; Operating income -$910.0k.

• ▍Revenue $4.5M
• ▍Operating income -$910.0k
• ▍Net margin -21.4%

Revenue $4.2M; Operating income -$1.2M.

• ▍Revenue $4.2M
• ▍Operating income -$1.2M
• ▍Net margin -31.2%

Revenue $4.7M; Operating income -$1.4M.

• ▍Revenue $4.7M
• ▍Operating income -$1.4M
• ▍Net margin -29.9%

Revenue $5.2M; Operating income -$258.5k.

• ▍Revenue $5.2M
• ▍Operating income -$258.5k
• ▍Net margin -6.0%

Revenue $19.1M, −0,1% YoY; Operating income −103,8% YoY.

• ▍Revenue $19.1M, −0,1% YoY
• ▍Operating income −103,8% YoY
• ▍Net income −95,8% YoY
• ▍Free cash flow −91,3% YoY
• ▍Net margin -30.3%

Revenue $19.1M, −9,2% YoY; Operating income −3 672,9% YoY.

• ▍Revenue $19.1M, −9,2% YoY
• ▍Operating income −3 672,9% YoY
• ▍Net income −1 940,9% YoY
• ▍Free cash flow −22 351,5% YoY
• ▍Net margin -15.4%

Revenue $21.0M, +34,2% YoY; Operating income +109,9% YoY.

• ▍Revenue $21.0M, +34,2% YoY
• ▍Operating income +109,9% YoY
• ▍Net income +84,4% YoY
• ▍Free cash flow +101,6% YoY
• ▍Net margin -0.7%

Revenue $15.7M, +46,9% YoY; Operating income −698,8% YoY.

• ▍Revenue $15.7M, +46,9% YoY
• ▍Operating income −698,8% YoY
• ▍Net income −802,8% YoY
• ▍Free cash flow −965,7% YoY
• ▍Net margin -5.9%

Revenue $10.7M; Operating income -$96.6k.

• ▍Revenue $10.7M
• ▍Operating income -$96.6k
• ▍Net margin -1.0%