📊 PMDI Key Takeaways
Is Psychemedics Corp. (PMDI) a Good Investment?
Psychemedics exhibits deteriorating operational fundamentals with declining revenue (-10.9% YoY) and persistent operating losses (margin -9.6%), despite positive free cash flow and a debt-free balance sheet. The company's improving net income is masked by worsening EPS (-58.3% YoY), signaling deepening per-share earnings erosion that requires either significant revenue recovery or substantial cost restructuring to restore viability.
Why Buy Psychemedics Corp. Stock? PMDI Key Strengths
- Positive free cash flow of $878K despite net losses, indicating disciplined capital management
- Strong liquidity with current ratio of 1.82x and cash position of $1.4M providing operational cushion
- Zero debt and positive stockholders' equity of $5.1M with solid balance sheet foundation
- Decent gross margin of 36.1% suggests pricing power in medical laboratory services segment
PMDI Stock Risks: Psychemedics Corp. Investment Risks
- Revenue decline of 10.9% YoY indicates lost market share or reduced demand in competitive medical lab sector
- Deeply negative operating margin of -9.6% shows core business is unprofitable before financing costs
- Deteriorating EPS (-58.3% YoY) despite improving net income reveals unfavorable share dilution and shareholder value destruction
- Limited cash runway relative to persistent operating losses if revenue decline accelerates further
Key Metrics to Watch
- Revenue growth rate reversal from negative to positive territory
- Operating margin improvement toward breakeven and profitability thresholds
- Free cash flow sustainability as cash reserves deplete from ongoing losses
- Gross margin stability or expansion to offset operating leverage pressures
Psychemedics Corp. (PMDI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility.
PMDI Profit Margin, ROE & Profitability Analysis
PMDI vs Healthcare Sector: How Psychemedics Corp. Compares
How Psychemedics Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Psychemedics Corp. Stock Overvalued? PMDI Valuation Analysis 2026
Based on fundamental analysis, Psychemedics Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Psychemedics Corp. Balance Sheet: PMDI Debt, Cash & Liquidity
PMDI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Psychemedics Corp.'s revenue has declined by 48% over the 5-year period, indicating business contraction. The most recent EPS of $-0.70 indicates the company is currently unprofitable.
PMDI Revenue Growth, EPS Growth & YoY Performance
PMDI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $5.2M | -$535.0K | $-0.09 |
| Q2 2024 | $4.7M | -$726.0K | $-0.13 |
| Q1 2024 | $5.4M | -$384.0K | $-0.07 |
| Q3 2023 | $5.7M | -$97.0K | $-0.02 |
| Q2 2023 | $5.5M | -$299.0K | $-0.05 |
| Q1 2023 | $5.9M | $39.0K | $0.01 |
| Q3 2022 | $6.5M | -$97.0K | $-0.02 |
| Q2 2022 | $6.1M | $134.0K | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Psychemedics Corp. Dividends, Buybacks & Capital Allocation
PMDI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Psychemedics Corp. (CIK: 0000806517)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PMDI
What is the AI rating for PMDI?
Psychemedics Corp. (PMDI) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PMDI's key strengths?
Claude: Positive free cash flow of $878K despite net losses, indicating disciplined capital management. Strong liquidity with current ratio of 1.82x and cash position of $1.4M providing operational cushion.
What are the risks of investing in PMDI?
Claude: Revenue decline of 10.9% YoY indicates lost market share or reduced demand in competitive medical lab sector. Deeply negative operating margin of -9.6% shows core business is unprofitable before financing costs.
What is PMDI's revenue and growth?
Psychemedics Corp. reported revenue of $19.7M.
Does PMDI pay dividends?
Psychemedics Corp. does not currently pay dividends.
Where can I find PMDI SEC filings?
Official SEC filings for Psychemedics Corp. (CIK: 0000806517) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PMDI's EPS?
Psychemedics Corp. has a diluted EPS of $-0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PMDI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Psychemedics Corp. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PMDI stock overvalued or undervalued?
Valuation metrics for PMDI: ROE of -36.3% (sector avg: 15%), net margin of -9.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy PMDI stock in 2026?
Our dual AI analysis gives Psychemedics Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PMDI's free cash flow?
Psychemedics Corp.'s operating cash flow is $929.0K, with capital expenditures of $51.0K. FCF margin is 4.5%.
How does PMDI compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -9.5% (avg: 12%), ROE -36.3% (avg: 15%), current ratio 1.82 (avg: 2).