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Fonar Corp (FONR)
NASDAQ:FONR

Fonar (FONR) AI Stock Analysis

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Fonar

(NASDAQ:FONR)

Rating:77Outperform
Price Target:
$16.50
▲(13.79%Upside)
Fonar's overall stock score is driven by its strong financial performance and attractive valuation. The company exhibits solid profitability and financial health, although revenue growth challenges and cash flow fluctuations are concerns. Technical analysis supports bullish momentum, but potential overbought conditions warrant careful monitoring.

Fonar (FONR) vs. SPDR S&P 500 ETF (SPY)

Fonar Business Overview & Revenue Model

Company DescriptionFonar Corporation, founded in 1978, is a U.S.-based company that operates in the healthcare sector, specifically focusing on medical imaging. It is renowned for being a pioneer in the development of MRI (Magnetic Resonance Imaging) technology. The company's core products include MRI scanners, with a specialization in upright MRI systems, which allow patients to be scanned in various positions, including weight-bearing positions. This capability is particularly beneficial for diagnosing certain conditions that may not be as apparent in traditional, supine MRI scans.
How the Company Makes MoneyFonar Corporation generates revenue primarily through the sale of its MRI scanning systems. The company's flagship product, the Upright MRI, is a significant contributor to its income. In addition to direct sales, Fonar also earns money from service and maintenance contracts for its MRI machines, ensuring ongoing relationships with healthcare providers who require regular maintenance and technical support. Furthermore, Fonar benefits from leasing arrangements and providing ancillary services, such as assisting with the setup and installation of their MRI systems. While specific partnerships and collaborations may influence earnings, Fonar's revenue model is largely centered around sales and services related to its innovative MRI technology.

Fonar Financial Statement Overview

Summary
Fonar showcases overall financial strength with robust profitability and a solid balance sheet, complemented by prudent leverage. Despite a decline in revenue growth, the company maintains strong margins and equity ratios, supporting its stability and growth potential. However, cash flow fluctuations and revenue challenges suggest areas for improvement in sustaining long-term growth.
Income Statement
72
Positive
Fonar's income statement shows satisfactory performance with strong profitability metrics. The TTM period's gross profit margin stands at 35.3%, and the net profit margin is 14.2%, reflecting effective cost management and profitability. However, revenue growth has been challenging, with a decline from the previous year, indicating potential market or operational pressures. EBIT and EBITDA margins in the TTM are also healthy at 15.5% and 23.4%, respectively, showcasing operational efficiency despite revenue headwinds.
Balance Sheet
78
Positive
The balance sheet reflects strong financial health with a solid equity base. The debt-to-equity ratio is conservative at 0.23, highlighting low leverage and financial stability. The equity ratio is robust at 79.9%, indicating strong asset backing by shareholders' equity. Return on equity is commendable at 6.4% for the TTM, suggesting decent returns for shareholders. Overall, the balance sheet positions Fonar well for future growth and risk management.
Cash Flow
68
Positive
Cash flow analysis reveals positive, though fluctuating, performance. Free cash flow in the TTM is positive, but the growth rate has slowed due to increased capital expenditures. The operating cash flow to net income ratio is 1.05, indicating adequate cash generation relative to earnings. However, the decline in free cash flow compared to previous periods raises some concerns about cash sustainability if revenue growth continues to be a challenge.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
77.88M102.88M98.65M97.59M89.93M85.69M
Gross Profit
27.50M45.14M45.75M47.01M43.47M42.39M
EBIT
12.04M16.54M14.79M22.01M17.10M8.81M
EBITDA
18.20M28.25M24.61M31.65M23.45M19.14M
Net Income Common Stockholders
11.07M10.57M9.38M17.23M13.67M11.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
54.38M56.48M51.31M48.76M44.49M36.83M
Total Assets
214.92M214.25M200.58M199.34M189.51M180.26M
Total Debt
39.79M41.68M37.01M38.22M34.69M35.77M
Net Debt
-14.47M-14.67M-14.27M-10.51M-9.77M-1.03M
Total Liabilities
54.66M57.46M49.75M53.11M54.14M54.02M
Stockholders Equity
171.88M165.97M157.91M150.29M138.42M126.19M
Cash FlowFree Cash Flow
8.07M13.27M10.13M10.67M14.27M12.76M
Operating Cash Flow
11.64M14.09M14.47M15.30M19.09M20.40M
Investing Cash Flow
-3.51M-850.74K-4.34M-5.18M-4.82M7.42M
Financing Cash Flow
-7.86M-8.18M-7.57M-5.86M-6.61M-4.90M

Fonar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.50
Price Trends
50DMA
13.12
Positive
100DMA
13.99
Positive
200DMA
14.94
Negative
Market Momentum
MACD
0.45
Negative
RSI
61.70
Neutral
STOCH
55.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FONR, the sentiment is Positive. The current price of 14.5 is above the 20-day moving average (MA) of 14.09, above the 50-day MA of 13.12, and below the 200-day MA of 14.94, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FONR.

Fonar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$93.70M11.885.00%0.29%-22.13%
65
Neutral
$84.36M46.413.46%24.75%-61.29%
62
Neutral
$93.35M-26.20%20.81%-498.66%
54
Neutral
$5.38B3.31-45.11%3.29%16.82%0.04%
52
Neutral
$62.22M-67.86%0.34%6.20%
49
Neutral
$66.37M-94.65%-5.86%50.76%
44
Neutral
$58.55M-173.47%0.34%9.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FONR
Fonar
14.50
-0.50
-3.33%
CTSO
Cytosorbents
1.07
0.21
24.42%
XTNT
Xtant Medical Holdings
0.65
-0.07
-9.72%
SRTS
Sensus Healthcare
4.97
-0.41
-7.62%
HYPR
Hyperfine
0.74
-0.18
-19.57%
ICCM
Icecure Medical
0.99
0.23
30.26%

Fonar Corporate Events

Executive/Board ChangesShareholder Meetings
Fonar Holds Annual Stockholders Meeting and Elections
Neutral
May 19, 2025

On May 19, 2025, Fonar Corporation held its Annual Meeting of Stockholders at the Hilton Long Island Huntington Hotel in Melville, New York. During the meeting, stockholders elected five directors, approved executive compensation, and ratified CohnReznick LLP as the auditors for the fiscal year ending June 30, 2025. The re-elected directors include Timothy R. Damadian, M.D., Claudette J. V. Chan, Ronald G. Lehman, Richard E Turk, and Jessica Maher.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.