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Precision Optics Corporation, Inc.. (POCI) Fundamental Analysis & AI Grade 2026

POCI Nasdaq Electromedical & Electrotherapeutic Apparatus MA CIK: 0000867840
Updated This Month • Analysis: May 15, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
87% Confidence
N/A
D
87% Conf
Pending
Analysis scheduled

📊 POCI Key Takeaways

Revenue: $22.8M
Net Margin: -15.5%
Free Cash Flow: $-1.1M
Current Ratio: 2.10x
Debt/Equity: 0.07x
EPS: $-0.46
AI Grade: D with 87% confidence
Precision Optics Corporation, Inc.. (POCI) receives a D fundamental grade with 87% confidence from our AI analysis based on SEC 10-K filings. With revenue of $22.8M, net profit margin of -15.5%, and return on equity (ROE) of -17.5%, Precision Optics Corporation, Inc.. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete POCI stock analysis for 2026.

Is Precision Optics Corporation, Inc.. (POCI) a Good Investment?

Claude

Precision Optics exhibits structural unprofitability with negative operating income (-$3.4M) and negative free cash flow (-$1.1M) despite $22.8M in revenue, indicating an unsustainable business model. Flat revenue growth (-0.1% YoY), deteriorating EPS (-73.5% YoY), and low gross margins (14.1%) demonstrate a company losing competitive ground in the medical device sector with no evident operational improvement.

Precision Optics Corporation, Inc.. Key Strengths (POCI)

Claude
  • + Strong liquidity position with 2.10x current ratio and 1.74x quick ratio
  • + Conservative capital structure with 0.07x debt-to-equity ratio and minimal long-term debt of $1.5M
  • + Adequate cash reserves of $10.7M providing operational runway

POCI Stock Risks: Precision Optics Corporation, Inc.. Investment Risks

Claude
  • ! Negative operating and net income combined with negative free cash flow (-$1.1M) indicates unsustainable cash burn despite positive revenue
  • ! Flat revenue growth (-0.1% YoY) and deteriorating EPS (-73.5% YoY) suggest loss of market competitiveness in electromedical devices sector
  • ! Low gross margin of 14.1% and negative operating margins (-14.9%) constrain any path to profitability

Key Metrics to Watch

Claude
  • * Operating cash flow trend - must improve from -$901K burn rate
  • * Revenue growth acceleration and gross margin expansion required for profitability
  • * Cash burn rate and months of remaining runway before liquidity stress

Precision Optics Corporation, Inc.. (POCI) Financial Metrics & Key Ratios

Revenue
$22.8M
Net Income
$-3.5M
EPS (Diluted)
$-0.46
Free Cash Flow
$-1.1M
Total Assets
$33.7M
Cash Position
$10.7M

💡 AI Analyst Insight

Strong liquidity with a 2.10x current ratio provides a solid financial cushion.

POCI Profit Margin, ROE & Profitability Analysis

Gross Margin 14.1%
Operating Margin -14.9%
Net Margin -15.5%
ROE -17.5%
ROA -10.5%
FCF Margin -5.0%

POCI vs Healthcare Sector: How Precision Optics Corporation, Inc.. Compares

How Precision Optics Corporation, Inc.. compares to Healthcare sector averages

Net Margin
POCI -15.5%
vs
Sector Avg 12.0%
POCI Sector
ROE
POCI -17.5%
vs
Sector Avg 15.0%
POCI Sector
Current Ratio
POCI 2.1x
vs
Sector Avg 2.0x
POCI Sector
Debt/Equity
POCI 0.1x
vs
Sector Avg 0.6x
POCI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Precision Optics Corporation, Inc.. Stock Overvalued? POCI Valuation Analysis 2026

Based on fundamental analysis, Precision Optics Corporation, Inc.. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
-17.5%
Sector avg: 15%
Net Profit Margin
-15.5%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.07x
Sector avg: 0.6x

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.

Precision Optics Corporation, Inc.. Balance Sheet: POCI Debt, Cash & Liquidity

Current Ratio
2.10x
Quick Ratio
1.74x
Debt/Equity
0.07x
Debt/Assets
40.3%
Interest Coverage
-29.49x
Long-term Debt
$1.5M

POCI Revenue & Earnings Growth: 5-Year Financial Trend

POCI 5-year financial data: Year 2021: Revenue $10.7M, Net Income -$1.4M, EPS N/A. Year 2022: Revenue $15.7M, Net Income -$102.8K, EPS $-0.01. Year 2023: Revenue $21.0M, Net Income -$928.4K, EPS $-0.18. Year 2024: Revenue $21.0M, Net Income -$144.6K, EPS $-0.03. Year 2025: Revenue $19.1M, Net Income -$3.0M, EPS $-0.49.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Precision Optics Corporation, Inc..'s revenue has grown significantly by 79% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.49 indicates the company is currently unprofitable.

POCI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-5.0%
Free cash flow / Revenue

POCI Quarterly Earnings & Performance

Quarterly financial performance data for Precision Optics Corporation, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $4.2M -$108.3K $-0.01
Q2 2026 $4.5M -$969.7K $-0.15
Q1 2026 $4.2M -$1.3M $-0.21
Q3 2025 $4.2M -$317.1K $-0.05
Q2 2025 $4.5M -$464.4K $-0.13
Q1 2025 $4.2M -$464.4K $-0.08
Q3 2024 $5.0M -$48.5K $-0.01
Q2 2024 $4.8M -$158.7K $0.06

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Precision Optics Corporation, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$901.1K
Cash generated from operations
Capital Expenditures
$227.2K
Investment in assets
Dividends
None
No dividend program

POCI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Precision Optics Corporation, Inc.. (CIK: 0000867840)

📋 Recent SEC Filings

Date Form Document Action
May 13, 2026 10-Q poci_i10q-033126.htm View →
Apr 2, 2026 4 xslF345X06/ownership.xml View →
Apr 1, 2026 4 xslF345X06/ownership.xml View →
Apr 1, 2026 4 xslF345X06/ownership.xml View →
Apr 1, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about POCI

What is the AI rating for POCI?

Precision Optics Corporation, Inc.. (POCI) has an AI grade of D with 87% confidence, based on fundamental analysis of SEC EDGAR filings.

What are POCI's key strengths?

Claude: Strong liquidity position with 2.10x current ratio and 1.74x quick ratio. Conservative capital structure with 0.07x debt-to-equity ratio and minimal long-term debt of $1.5M.

What are the risks of investing in POCI?

Claude: Negative operating and net income combined with negative free cash flow (-$1.1M) indicates unsustainable cash burn despite positive revenue. Flat revenue growth (-0.1% YoY) and deteriorating EPS (-73.5% YoY) suggest loss of market competitiveness in electromedical devices sector.

What is POCI's revenue and growth?

Precision Optics Corporation, Inc.. reported revenue of $22.8M.

Does POCI pay dividends?

Precision Optics Corporation, Inc.. does not currently pay dividends.

Where can I find POCI SEC filings?

Official SEC filings for Precision Optics Corporation, Inc.. (CIK: 0000867840) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is POCI's EPS?

Precision Optics Corporation, Inc.. has a diluted EPS of $-0.46.

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 grade reflects both perspectives for balanced insights.

What is POCI's fundamental grade?

Based on our AI fundamental analysis in May 2026, Precision Optics Corporation, Inc.. has a D grade with 87% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is POCI stock overvalued or undervalued?

Valuation metrics for POCI: ROE of -17.5% (sector avg: 15%), net margin of -15.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is POCI's AI grade for 2026?

Our dual AI analysis gives Precision Optics Corporation, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is POCI's free cash flow?

Precision Optics Corporation, Inc..'s operating cash flow is $-901.1K, with capital expenditures of $227.2K. FCF margin is -5.0%.

How does POCI compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -15.5% (avg: 12%), ROE -17.5% (avg: 15%), current ratio 2.10 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 15, 2026 | Data as of: 2026-03-31 | Powered by Claude AI