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Paradigm Medical Industries

PDMI
22
Medical - Instruments & Supplies · Healthcare
Winston Score
22
Winston is worried
Weak fundamentals across most pillars.

Paradigm Medical Industries makes diagnostic equipment for eye doctors. Its main product is the Paradigm C-Scan, a device that maps the surface of the cornea — the clear front part of the eye — to help doctors detect and monitor conditions like keratoconus and other corneal diseases. The company sells primarily to ophthalmologists and optometrists in clinical settings.

Paradigm generates revenue by selling its diagnostic hardware and related accessories directly to eye care practices. It is a very small company, with a market cap near zero, and operates mainly in the United States. Despite a high gross margin, the deeply negative return on invested capital signals the business is not efficiently converting investment into profit. The key risk is its tiny scale: with limited resources, Paradigm faces significant competition from larger, better-funded medical device makers and may struggle to expand its customer base or fund ongoing product development.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-33.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+97.8% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

0.0%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~2 months

$44,000 cash & investments

Short runway — potential dilution ahead through share issuance

Cash watch

Paradigm Medical Industries has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
53.6%
Healthy — 53.6% gross margin
Operating Margin
102.0%
Excellent — 102.0% operating margin
ROCE
N/A
Data not available

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Growth

Sales YoY
-30.7%
Shrinking sales (-30.7% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-25.0%
Burning cash (-25.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
6.49x
Adequate interest coverage (6.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
N/M
no trend
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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