📊 POCI Key Takeaways
Is Precision Optics Corporation, Inc.. (POCI) a Good Investment?
Precision Optics is in severe financial distress with accelerating losses (-24.3% net margin), negative operating cash flow, and dangerously low liquidity (quick ratio 0.62x). The company is burning cash at $405K annually with only $881K in reserves, leaving minimal runway. Flat revenue growth combined with collapsing profitability signals fundamental operational failure with no visible turnaround.
Why Buy Precision Optics Corporation, Inc.. Stock? POCI Key Strengths
- Conservative leverage with debt-to-equity ratio of only 0.17x limits financial risk from debt burden
- Positive stockholders' equity of $9.3M provides some cushion, though rapidly eroding
- Recent insider trading activity suggests some stakeholder engagement with the business
POCI Stock Risks: Precision Optics Corporation, Inc.. Investment Risks
- Critical liquidity crisis: quick ratio of 0.62x cannot cover current liabilities; only $881.5K cash with negative operating cash flow
- Profitability collapse across all metrics (net margin -24.3%, operating margin -23.8%, ROE -36.6%, ROA -14.9%) with EPS declining 73.5% YoY
- Structural cost problems evident in 8.2% gross margin, indicating non-competitive pricing, high COGS, or market rejection
- Stagnant revenue (-0.1% YoY) combined with free cash flow burn of $405.1K annualizes to potential cash depletion within 2-3 years
- Negative interest coverage ratio (-41.6x) indicates inability to service debt from operations
Key Metrics to Watch
- Operating cash flow trend - must return to positive to indicate business sustainability
- Gross margin improvement - currently at crisis levels; any pickup would suggest operational turnaround
- Cash burn rate and cash position runway - critical for survival timeline
- Revenue growth acceleration - current flat growth provides no positive momentum
- Cost structure reduction path - need evidence of margin expansion initiatives
Precision Optics Corporation, Inc.. (POCI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Precision Optics Corporation, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
POCI Profit Margin, ROE & Profitability Analysis
POCI vs Healthcare Sector: How Precision Optics Corporation, Inc.. Compares
How Precision Optics Corporation, Inc.. compares to Healthcare sector averages
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.
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
POCI Revenue & Earnings Growth: 5-Year Financial Trend
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
POCI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q1 2024 | $4.3M | -$158.7K | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Precision Optics Corporation, Inc.. Dividends, Buybacks & Capital Allocation
POCI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Precision Optics Corporation, Inc.. (CIK: 0000867840)
📋 Recent SEC Filings
❓ Frequently Asked Questions about POCI
What is the AI rating for POCI?
Precision Optics Corporation, Inc.. (POCI) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are POCI's key strengths?
Claude: Conservative leverage with debt-to-equity ratio of only 0.17x limits financial risk from debt burden. Positive stockholders' equity of $9.3M provides some cushion, though rapidly eroding.
What are the risks of investing in POCI?
Claude: Critical liquidity crisis: quick ratio of 0.62x cannot cover current liabilities; only $881.5K cash with negative operating cash flow. Profitability collapse across all metrics (net margin -24.3%, operating margin -23.8%, ROE -36.6%, ROA -14.9%) with EPS declining 73.5% YoY.
What is POCI's revenue and growth?
Precision Optics Corporation, Inc.. reported revenue of $14.0M.
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 $-0.44.
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 POCI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Precision Optics Corporation, Inc.. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is POCI stock overvalued or undervalued?
Valuation metrics for POCI: ROE of -36.6% (sector avg: 15%), net margin of -24.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy POCI stock in 2026?
Our dual AI analysis gives Precision Optics Corporation, Inc.. a combined STRONG SELL rating 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 $-177.9K, with capital expenditures of $227.2K. FCF margin is -2.9%.
How does POCI compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -24.3% (avg: 12%), ROE -36.6% (avg: 15%), current ratio 1.05 (avg: 2).