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

Fundamentals

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


Market Performance


7 Day Return

4.0%

FONR

1.7%

US Medical Equipment

2.3%

US Market


1 Year Return

-12.4%

FONR

10.1%

US Medical Equipment

5.6%

US Market

Return vs Industry: FONR underperformed the US Medical Equipment industry which returned 10.1% over the past year.

Return vs Market: FONR underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

FONRIndustryMarket
7 Day4.0%1.7%2.3%
30 Day-12.9%-1.7%-1.0%
90 Day-6.0%-1.7%-0.7%
1 Year-12.4%-12.4%11.0%10.1%7.9%5.6%
3 Year4.1%4.1%70.4%65.2%45.6%36.3%
5 Year75.2%75.2%128.5%103.2%65.8%47.6%

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

Undervalued: FONR ($20.57) is trading below our estimate of fair value ($51.65)

Significantly Undervalued: 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 (9.1x) compared to the Medical Equipment industry average (41.1x).

PE vs Market: FONR is good value based on its PE Ratio (9.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (1.2x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FONR's forecast earnings growth (2.8% per year) is above the savings rate (2.7%).

Earnings vs Market: FONR's earnings (2.8% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FONR's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if FONR's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if FONR's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FONR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FONAR performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FONR's earnings have grown by 12.8% 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 (-27.8%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: FONR's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: FONR has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: FONR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is FONAR's financial position?


Financial Position Analysis

Short Term Liabilities: FONR's short term assets ($85.1M) exceeds its short term liabilities ($14.1M)

Long Term Liabilities: FONR's short term assets (85.1M) exceeds its long term liabilities (1.4M)


Debt to Equity History and Analysis

Debt Level: FONR's debt to equity ratio (0.3%) is considered satisfactory

Reducing Debt: FONR's debt to equity ratio has reduced from 25% to 0.3% over the past 5 years.

Debt Coverage: FONR's debt is well covered by operating cash flow (6200.8%).

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


Balance Sheet

Inventory Level: FONR has a low level of unsold assets or inventory.

Debt Coverage by Assets: FONR's debt is covered by short term assets (assets are 271.292490x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of FONAR's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Tim Damadian (55yo)

3.7yrs

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 ...


Management Age and Tenure

3.7yrs

Average Tenure

72.5yo

Average Age

Experienced Management: FONR's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

31.3yrs

Average Tenure

83yo

Average Age

Experienced Board: FONR's board of directors are seasoned and experienced ( 31.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Raymond Damadian (83yo)

    Chairman of the Board

    • Tenure: 41.8yrs
    • Compensation: US$458.90k
  • Tim Damadian (55yo)

    CEO & President

    • Tenure: 3.7yrs
    • Compensation: US$155.80k
  • Claudette J. Chan (81yo)

    Secretary & Director

    • Tenure: 32yrs
    • Compensation: US$20.00k
  • Dan Culver

    Director of Communications

    • Tenure: 0yrs
  • Luciano Bonanni (64yo)

    COO & Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$305.57k

Board Members

  • Raymond Damadian (83yo)

    Chairman of the Board

    • Tenure: 41.8yrs
    • Compensation: US$458.90k
  • Claudette J. Chan (81yo)

    Secretary & Director

    • Tenure: 32yrs
    • Compensation: US$20.00k
  • Robert Janoff (92yo)

    Independent Director

    • Tenure: 30.7yrs
    • Compensation: US$20.00k
  • Charles O'Data (83yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$20.00k
  • Ron Lehman (43yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$20.00k

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$135.250m
  • 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 market ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:59
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.