NasdaqCM:FONR

Stock Analysis Report

Executive Summary

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the United States.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has FONAR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FONR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

FONR

10.2%

US Medical Equipment

9.4%

US Market


1 Year Return

-25.6%

FONR

2.1%

US Medical Equipment

-6.8%

US Market

Return vs Industry: FONR underperformed the US Medical Equipment industry which returned 0.2% over the past year.

Return vs Market: FONR underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

FONRIndustryMarket
7 Day3.9%10.2%9.4%
30 Day-1.3%0.9%-3.9%
90 Day-23.1%-12.1%-16.5%
1 Year-25.6%-25.6%2.9%2.1%-4.8%-6.8%
3 Year-16.0%-16.0%57.1%52.9%23.4%15.2%
5 Year32.2%32.2%89.2%69.8%41.3%25.7%

Price Volatility Vs. Market

How volatile is FONAR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FONAR undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FONR ($14.84) is trading below our estimate of fair value ($47.96)

Significantly Below Fair Value: FONR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FONR is good value based on its PE Ratio (7x) compared to the Medical Equipment industry average (40.8x).

PE vs Market: FONR is good value based on its PE Ratio (7x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FONR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FONR is good value based on its PB Ratio (0.8x) compared to the US Medical Equipment industry average (3.1x).


Next Steps

Future Growth

How is FONAR forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.6%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as FONAR has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has FONAR performed over the past 5 years?

7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FONR has high quality earnings.

Growing Profit Margin: FONR's current net profit margins (16%) are lower than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: FONR's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: FONR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FONR had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Medical Equipment industry average (1.4%).


Return on Equity

High ROE: FONR's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is FONAR's financial position?


Financial Position Analysis

Short Term Liabilities: FONR's short term assets ($90.0M) exceed its short term liabilities ($14.9M).

Long Term Liabilities: FONR's short term assets ($90.0M) exceed its long term liabilities ($31.7M).


Debt to Equity History and Analysis

Debt Level: FONR's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: FONR's debt to equity ratio has reduced from 19.6% to 0.2% over the past 5 years.

Debt Coverage: FONR's debt is well covered by operating cash flow (6894.6%).

Interest Coverage: FONR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is FONAR's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FONR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FONR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FONR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FONR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FONR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Tim Damadian (55yo)

4.17s

Tenure

US$155,800

Compensation

Mr. Timothy R. Damadian, also known as Tim, has been Chief Executive Officer and President of Fonar Corp. since February 11, 2016. From 2010 to 2016 he served as an independent consultant. Mr. Damadian beg ...


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Damadian
Chairman of the Board42.25yrsUS$458.90k3.79% $3.7m
Timothy Damadian
CEO & President4.17yrsUS$155.80k0.58% $570.0k
Luciano Bonanni
COO & Executive VP3.83yrsUS$305.57k0.63% $624.9k
Claudette J. Chan
Secretary & Director32.5yrsUS$20.00k0.0016% $1.6k
Daniel Culver
Director of Communicationsno datano datano data

4.2yrs

Average Tenure

72.5yo

Average Age

Experienced Management: FONR's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raymond Damadian
Chairman of the Board42.25yrsUS$458.90k3.79% $3.7m
Claudette J. Chan
Secretary & Director32.5yrsUS$20.00k0.0016% $1.6k
Robert Janoff
Independent Director31.17yrsUS$20.00kno data
Charles O'Data
Lead Independent Directorno dataUS$20.00k0.010% $9.9k
Ronald Lehman
Independent Director8yrsUS$20.00k0.018% $18.2k

31.8yrs

Average Tenure

83yo

Average Age

Experienced Board: FONR's board of directors are seasoned and experienced ( 31.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FONAR Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FONAR Corporation
  • Ticker: FONR
  • Exchange: NasdaqCM
  • Founded: 1978
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$98.627m
  • Shares outstanding: 6.58m
  • Website: https://www.fonar.com

Number of Employees


Location

  • FONAR Corporation
  • 110 Marcus Drive
  • Melville
  • New York
  • 11747
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FONRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 1981
FOAADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1981

Biography

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the United States. It is involved in the research, development, production, and marketing of medical scanning equipment, which uses principles of MRI for the detection and diagnosis of human diseases. The company operates in two segments, Medical Equipment segment, and Physician Management and Diagnostic services segment. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters and the development and implementation of practice growth and marketing strategies. The company owns and operates 4 diagnostic imaging facilities in Florida; and manages 25 MRI scanning facilities, including 18 facilities located in New York and 7 situated in Florida. It markets its scanners to private diagnostic imaging centers and hospitals. The company was founded in 1978 and is based in Melville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 05:22
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.