Fonar (FONR) AI Stock Analysis

• Market Cap: $78.15M
• Dividend Yield: N/A
• Average Volume (3M): 13.47K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.45
• Revenue Growth: -0.83%
• EPS Growth: -38.41%
• Country: US
• Employees: 520
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Devices
• EPS (TTM): 1.13
• Shares Outstanding: 6,211,191
• 10 Day Avg. Volume: 9,417
• 30 Day Avg. Volume: 13,474
• PEG Ratio: -0.55
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Fonar's overall stock score reflects solid financial performance with effective profitability and cash generation, although attention to leverage is advised. The stock is technically bearish, with negative momentum indicators, but it is undervalued based on its P/E ratio, suggesting room for future price appreciation.

Fonar Business Overview & Revenue Model

Company Description

Fonar Corporation, founded in 1978, is a pioneer in the medical imaging industry, particularly known for its development of magnetic resonance imaging (MRI) technology. The company operates primarily in the healthcare sector, focusing on the design, manufacture, and sale of MRI scanners. Fonar is notable for its Upright MRI, which allows patients to be scanned in a variety of positions, including sitting or standing, which can be crucial for diagnosing certain conditions that are affected by gravity.

How the Company Makes Money

Fonar makes money through the sale and leasing of its MRI equipment, particularly the Upright MRI scanners. The company also generates revenue by providing maintenance and servicing for MRI systems. Additionally, Fonar has a subsidiary, Health Management Corporation of America (HMCA), which manages diagnostic imaging centers. These centers not only use Fonar's MRI technology but also provide a source of recurring revenue through patient scans and related services. The company benefits from partnerships with healthcare providers and institutions that utilize its advanced imaging technology, thereby expanding its market reach and customer base.

Fonar Financial Statement Overview

Summary

Fonar's financial statements reflect a company with solid profitability and cash generation capabilities, albeit with potential leverage risks due to a high debt-to-equity ratio in the latest period. The company exhibits consistent revenue growth and effective cost management. However, ongoing attention to leverage and cash flow stability is recommended to sustain financial health.

Income Statement

The income statement shows a healthy profitability profile with a strong gross profit margin and consistent EBIT and EBITDA margins. The company has shown revenue growth over the past periods, although the growth rate has recently slowed down. The net profit margin remains solid, indicating efficient cost management.

Balance Sheet

The balance sheet demonstrates a relatively high debt-to-equity ratio due to zero equity reported in the latest TTM period, indicating potential financial leverage risks. However, previous annual data shows stable equity levels and a reasonable equity ratio. The return on equity is noteworthy when equity was present, reflecting effective use of shareholders' funds.

Cash Flow

Cash flow statements reveal strong free cash flow generation and a solid operating cash flow to net income ratio, indicating good cash conversion efficiency. Nonetheless, fluctuations in free cash flow growth suggest potential variability in cash generation capabilities.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
101.57M	102.88M	98.65M	97.59M	89.93M	85.69M
	Gross Profit
42.13M	45.14M	45.75M	47.01M	43.47M	42.39M
	EBIT
12.12M	16.54M	14.79M	22.01M	17.10M	8.81M
	EBITDA
20.55M	28.25M	24.61M	31.65M	23.45M	19.14M
	Net Income Common Stockholders
7.80M	10.57M	9.38M	17.23M	13.67M	11.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.70M	56.48M	51.31M	48.76M	44.49M	36.83M
	Total Assets
207.96M	214.25M	200.58M	199.34M	189.51M	180.26M
	Total Debt
38.78M	41.68M	37.01M	38.22M	34.69M	35.77M
	Net Debt
-14.81M	-14.67M	-14.27M	-10.51M	-9.77M	-1.03M
	Total Liabilities
49.01M	57.46M	49.75M	53.11M	54.14M	54.02M
	Stockholders Equity
169.84M	165.97M	157.91M	150.29M	138.42M	126.19M
Cash Flow		Free Cash Flow
8.20M	13.27M	10.13M	10.67M	14.27M	12.76M
	Operating Cash Flow
11.36M	14.09M	14.47M	15.30M	19.09M	20.40M
	Investing Cash Flow
-3.20M	-850.74K	-4.34M	-5.18M	-4.82M	7.42M
	Financing Cash Flow
-7.80M	-8.18M	-7.57M	-5.86M	-6.61M	-4.90M

Fonar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FONR, the sentiment is Negative. The current price of 12.32 is above the 20-day moving average (MA) of 12.27, below the 50-day MA of 13.05, and below the 200-day MA of 15.26, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 36.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FONR.

Fonar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	69 Neutral	$75.05M	11.29	12.70%	―	71.31%	1277.03%
FONR	63 Neutral	$78.15M	10.90	4.68%	―	-0.83%	-38.41%
XTNT	53 Neutral	$72.32M	―	-26.20%	―	20.81%	-498.66%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
HYPR	46 Neutral	$56.82M	―	-61.03%	―	16.84%	9.43%
ICCM	46 Neutral	$54.87M	―	-160.70%	―	1.92%	6.23%
CTSO	44 Neutral	$54.48M	―	-120.52%	―	-2.08%	40.07%