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Forian Inc (FORA)
:FORA
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Forian
(NASDAQ:FORA)
54Neutral
Forian (FORA) vs. S&P 500 (SPY)
Market Cap
$63.32M
Dividend YieldN/A
Average Volume (3M)23.78K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth-1.60%
EPS Growth-760.99%
CountryUS
Employees47
SectorHealthcare
Sector Strength48
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding31,193,563
10 Day Avg. Volume4,864
30 Day Avg. Volume23,780
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)2.15
Price to Sales (P/S)0.00
P/FCF Ratio228.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside146.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Forian Business Overview & Revenue Model
Company DescriptionForian Inc. provides software solutions, proprietary data driven insights, and predictive analytics to optimize the operational, clinical, and financial performance of its healthcare, cannabis, and government customers. It operates through three segments: Information & Software, Services, and Other. The company's products include BioTrack, a vertically integrated point of sale, manufacturing, delivery, and cultivator software solution for dispensaries, cultivators, manufacturers, and distributors; and Cannalytics, a Software as a Service based analytics solution that provides clients with a presentation of business performance. Its products also comprise BioTrack seed-to-sale compliance traceability platform, which is used to manage the tracking and tracing of various cannabis products from cultivation to sale; BioTrack State Traceability & Enforcement Monitoring System to ensure transparency and accountability throughout cannabis supply chain; and STEMS, a seed-to-sale tracking module, to provide cannabis program management solution to cannabis regulatory agencies. In addition, the company offers security monitoring and web marketing services. The company is headquartered in Newtown, Pennsylvania.
How the Company Makes MoneyForian makes money primarily through subscription fees for its software services and data analytics solutions. The company offers a suite of products that cater to both the healthcare and cannabis sectors, enabling clients to access critical insights and tools for regulatory compliance, operational efficiency, and strategic decision-making. Additionally, Forian may generate revenue through professional services, which include consulting and implementation support. Partnerships with industry stakeholders and the integration of third-party data sources can also enhance the company's offerings and contribute to its revenue streams.
Forian Financial Statement Overview
Summary
Forian is navigating through a challenging financial period. While there are signs of improvement in leverage and operating cash flow, persistent net losses and negative EBIT and EBITDA margins suggest the need for strategic restructuring and cost management. Improving profitability remains crucial for enhancing overall financial health and stability.Income Statement
Forian shows mixed signals in its income statement. The gross profit margin has been relatively stable, with a slight decrease from 2023 to 2024, indicating some control over cost of goods sold. However, the company has consistently reported net losses, which has negatively impacted its net profit margin. Revenue growth has been volatile, with a decline observed in recent years. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies and highlighting the need for cost management improvements.55
Neutral
Balance Sheet
The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved significantly, indicating better leverage management. However, the total liabilities are still substantial. The return on equity has been negative due to net losses, but the equity ratio has improved, suggesting a stronger equity base relative to total assets. The company is relying less on debt, which is a positive sign, but it needs to achieve profitability to enhance its financial stability.60
Neutral
Cash Flow
Cash flow analysis shows challenges, with operating cash flow being positive in 2024 after years of negative figures. However, free cash flow has not shown consistent growth, indicating potential liquidity issues. The operating cash flow to net income ratio is not very meaningful due to ongoing net losses, but the positive shift in operating cash flow signals potential operational improvements. The company needs to focus on sustaining positive free cash flow for better financial health.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 20.15M | 20.48M | 28.01M | 16.88M | 544.87K | Gross Profit |
| 12.82M | 15.00M | 21.13M | 12.16M | 506.58K | EBIT |
| -6.99M | -5.60M | -20.51M | -26.41M | -4.98M | EBITDA |
| -2.91M | 2.75M | -18.25M | -24.00M | -4.97M | Net Income Common Stockholders |
| -3.77M | 11.11M | -25.97M | -26.55M | -4.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 35.08M | 48.34M | 20.72M | 31.06M | 12.17M | Total Assets |
| 47.17M | 58.89M | 46.26M | 56.84M | 12.55M | Total Debt |
| 6.72M | 24.88M | 25.75M | 25.13M | 0.00 | Net Debt |
| 2.13M | 18.84M | 22.43M | 6.47M | -665.46K | Total Liabilities |
| 17.12M | 32.71M | 33.84M | 31.67M | 1.29M | Stockholders Equity |
| 30.05M | 26.18M | 12.42M | 25.17M | 11.27M |
| Cash Flow | Free Cash Flow | |||
| 282.83K | 653.33K | -10.49M | -18.70M | -4.30M | Operating Cash Flow |
| 282.83K | 728.82K | -8.78M | -17.26M | -4.25M | Investing Cash Flow |
| 17.29M | 7.12M | -6.46M | -1.03M | -11.40M | Financing Cash Flow |
| -19.02M | -4.60M | -100.53K | 36.28M | 16.32M |
Forian Technical Analysis
Positive
2.03
Price Trends
2.00
Positive
2.13
Negative
2.17
Negative
Market Momentum
>-0.01
Negative
51.90
Neutral
34.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORA, the sentiment is Positive. The current price of 2.03 is above the 20-day moving average (MA) of 1.99, above the 50-day MA of 2.00, and below the 200-day MA of 2.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FORA.
Forian Risk Analysis
Forian disclosed 27 risk factors in its most recent earnings report. Forian reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Forian Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $85.91M | ― | 21.00% | ― | -0.45% | 94.32% | |
55 Neutral | $78.85M | ― | -11.67% | ― | 5.82% | 59.86% | |
55 Neutral | $73.48M | ― | -679.15% | ― | -56.88% | -57.57% | |
54 Neutral | $63.32M | ― | -13.41% | ― | -1.60% | -760.99% | |
52 Neutral | $5.22B | 3.55 | -44.39% | 2.82% | 15.40% | -0.09% | |
42 Neutral | $60.69M | ― | -124.59% | ― | 18.48% | -37.42% | |
38 Underperform | $79.96M | ― | -807.39% | ― | -89.76% | 80.28% |
* Healthcare Sector Average
Performance Comparison
FORA
Forian
2.03
-0.76
-27.24%
CYCC
Cyclacel Pharmaceuticals
2.75
-36.29
-92.96%
CCLD
CareCloud
2.03
-0.20
-8.97%
CPIX
Cumberland Pharmaceuticals
4.96
3.46
230.67%
STRO
Sutro Biopharma
0.73
-3.20
-81.42%
PIII
P3 Health Partners
8.18
-22.54
-73.37%
Forian Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q3-2024)
| % Change Since: 2.01%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Forian's strategic acquisition and improved sales momentum, but these positives were countered by flat revenue performance and a decline in adjusted EBITDA due to customer attrition and increased costs.Q3-2024 Updates
Positive Updates
Acquisition of Kyber Data Science
Forian acquired Kyber Data Science, expanding its addressable market to include financial service customers and strengthening its data science capabilities.
Improved Sales Momentum
Forian experienced increased sales wins in healthcare services and life sciences, with expanded relationships and renewals at larger amounts than initial contracts.
Strong Financial Position
Forian ended the period with $49.4 million of cash and marketable securities, demonstrating adequate capital to operate and capitalize on growth opportunities.
Negative Updates
Flat Revenue Performance
Third-quarter revenue was $4.7 million, down from $5.3 million year-over-year. Revenue has ranged steadily between $4.6 million and $5.4 million since the first quarter of 2024.
Decline in Adjusted EBITDA
Adjusted EBITDA decreased to $0.2 million from $1.2 million in the same quarter last year, primarily due to lower revenue and higher cost of revenue.
Customer Attrition Impact
Revenue was impacted by customer attrition and reduced revenue from early-stage customers struggling to secure funding.
Company Guidance
During the Forian Inc. Q3 2024 earnings call, management provided guidance indicating that the company anticipates reaching the upper end of its 2024 revenue forecast of $19 to $20 million, with adjusted EBITDA expected to remain within the range of negative $0.5 million to positive $0.5 million. The company's Q3 revenue was reported at $4.7 million, showing a sequential flat trend but a slight decline from $5.3 million year-over-year, with a net loss of $0.2 million and adjusted EBITDA of $0.2 million, compared to $4.3 million net income and $1.1 million adjusted EBITDA the previous year. Despite the revenue challenges, Forian expressed optimism about breaking out of its recent revenue range of $4.6 to $5.4 million, driven by increased sales wins and the strategic acquisition of Kyber Data Science, expected to enhance its market position and financial outlook as 2025 approaches.Forian Corporate Events
Executive/Board Changes
Forian’s EVP Edward Spaniel Jr. Announces Resignation
Neutral
May 2, 2025
On April 28, 2025, Edward Spaniel, Jr., the Executive Vice President, General Counsel, and Corporate Secretary of Forian Inc., announced his resignation from all positions within the company, effective May 23, 2025. His departure is not due to any disagreements with the company’s operations, policies, or practices.
Spark’s Take on FORA Stock
According to Spark, TipRanks’ AI Analyst, FORA is a Neutral.
Forian’s stock score reflects its financial struggles, with ongoing net losses and negative margins weighing heavily on performance. Technical analysis indicates a stable but unexciting outlook, while valuation concerns persist due to a negative P/E ratio. The company needs to focus on achieving profitability and improving cash flows to enhance its financial health.
To see Spark’s full report on FORA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.