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FONAR

Nasdaq:FONR
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FONR
Nasdaq
$144M
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites States. The last earnings update was 75 days ago. More info.


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FONR Share Price and Events
7 Day Returns
0.7%
NasdaqCM:FONR
1.2%
US Medical Equipment
-0.9%
US Market
1 Year Returns
-16.1%
NasdaqCM:FONR
15%
US Medical Equipment
3.8%
US Market
FONR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FONAR (FONR) 0.7% -0.5% 8.8% -16.1% -1.5% 109.3%
US Medical Equipment 1.2% 1.3% 11.9% 15% 63.9% 104.9%
US Market -0.9% 1.1% 1.1% 3.8% 35.5% 42.1%
1 Year Return vs Industry and Market
  • FONR underperformed the Medical Equipment industry which returned 15% over the past year.
  • FONR underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
FONR
Industry
5yr Volatility vs Market

Value

 Is FONAR undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FONAR to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FONAR.

NasdaqCM:FONR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:FONR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.87 (1 + (1- 21%) (0.22%))
0.914
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.914 * 5.96%)
8.17%

Discounted Cash Flow Calculation for NasdaqCM:FONR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FONAR is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqCM:FONR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.17%)
2020 16.10 Est @ -1.1% 14.88
2021 16.10 Est @ 0.05% 13.76
2022 16.24 Est @ 0.85% 12.83
2023 16.47 Est @ 1.42% 12.03
2024 16.77 Est @ 1.81% 11.32
2025 17.12 Est @ 2.09% 10.68
2026 17.51 Est @ 2.28% 10.10
2027 17.93 Est @ 2.41% 9.56
2028 18.38 Est @ 2.51% 9.06
2029 18.85 Est @ 2.58% 8.59
Present value of next 10 years cash flows $112.82
NasdaqCM:FONR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $18.85 × (1 + 2.73%) ÷ (8.17% – 2.73%)
$355.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $355.71 ÷ (1 + 8.17%)10
$162.12
NasdaqCM:FONR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $112.82 + $162.12
$274.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $274.93 / 6.49
$42.39
NasdaqCM:FONR Discount to Share Price
Calculation Result
Value per share (USD) From above. $42.39
Current discount Discount to share price of $22.27
= -1 x ($22.27 - $42.39) / $42.39
47.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price FONAR is available for.
Intrinsic value
47%
Share price is $22.27 vs Future cash flow value of $42.39
Current Discount Checks
For FONAR to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • FONAR's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • FONAR's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for FONAR's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FONAR's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:FONR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.03
NasdaqCM:FONR Share Price ** NasdaqCM (2019-07-23) in USD $22.27
United States of America Medical Equipment Industry PE Ratio Median Figure of 63 Publicly-Listed Medical Equipment Companies 40.95x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FONAR.

NasdaqCM:FONR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:FONR Share Price ÷ EPS (both in USD)

= 22.27 ÷ 3.03

7.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FONAR is good value based on earnings compared to the US Medical Equipment industry average.
  • FONAR is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does FONAR's expected growth come at a high price?
Raw Data
NasdaqCM:FONR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
0%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 54 Publicly-Listed Medical Equipment Companies 2.36x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for FONAR, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on FONAR's assets?
Raw Data
NasdaqCM:FONR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.17
NasdaqCM:FONR Share Price * NasdaqCM (2019-07-23) in USD $22.27
United States of America Medical Equipment Industry PB Ratio Median Figure of 183 Publicly-Listed Medical Equipment Companies 4.37x
United States of America Market PB Ratio Median Figure of 5,249 Publicly-Listed Companies 1.78x
NasdaqCM:FONR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:FONR Share Price ÷ Book Value per Share (both in USD)

= 22.27 ÷ 17.17

1.3x

* Primary Listing of FONAR.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FONAR is good value based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess FONAR's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. FONAR has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover FONAR, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FONAR expected to grow at an attractive rate?
  • FONAR's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • FONAR's earnings growth is positive but not above the United States of America market average.
  • Unable to compare FONAR's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:FONR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:FONR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 0%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.5%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:FONR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:FONR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 91 19 20
2018-12-31 94 20 19
2018-09-30 97 19 20
2018-06-30 99 19 20
2018-03-31 99 20 16
2017-12-31 97 19 19
2017-09-30 95 17 19
2017-06-30 94 17 19
2017-03-31 92 16 19
2016-12-31 90 15 16
2016-09-30 89 17 16
2016-06-30 88 17 15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FONAR's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if FONAR is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:FONR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from FONAR Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:FONR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.03
2018-12-31 2.94
2018-09-30 3.06
2018-06-30 3.15
2018-03-31 2.57
2017-12-31 2.90
2017-09-30 2.94
2017-06-30 2.92
2017-03-31 2.99
2016-12-31 2.60
2016-09-30 2.46
2016-06-30 2.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if FONAR will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess FONAR's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FONAR has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has FONAR performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FONAR's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FONAR's year on year earnings growth rate has been positive over the past 5 years.
  • FONAR's 1-year earnings growth exceeds its 5-year average (18.9% vs 14.9%)
  • FONAR's earnings growth has not exceeded the US Medical Equipment industry average in the past year (18.9% vs 31.9%).
Earnings and Revenue History
FONAR's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FONAR Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:FONR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 90.77 19.62 22.72 1.87
2018-12-31 93.52 19.25 28.20 1.99
2018-09-30 97.03 19.86 32.45 1.84
2018-06-30 99.41 20.24 36.02 1.76
2018-03-31 98.56 16.50 36.87 1.63
2017-12-31 97.01 18.80 35.25 1.46
2017-09-30 94.68 18.85 35.47 1.42
2017-06-30 94.21 18.70 35.58 1.48
2017-03-31 91.71 19.12 34.79 1.49
2016-12-31 90.17 16.36 34.23 1.56
2016-09-30 89.40 15.64 33.29 1.61
2016-06-30 87.91 14.96 33.05 1.63
2016-03-31 85.61 14.33 31.06 1.94
2015-12-31 83.46 13.39 30.83 1.91
2015-09-30 81.81 12.60 30.69 1.85
2015-06-30 81.82 12.29 30.22 1.81
2015-03-31 81.64 10.74 29.50 1.75
2014-12-31 81.26 10.48 29.62 1.75
2014-09-30 81.10 9.99 29.07 1.76
2014-06-30 78.84 9.89 28.92 1.76
2014-03-31 79.57 10.58 27.47 1.54
2013-12-31 71.30 9.95 23.70 1.56
2013-09-30 61.09 9.19 19.93 1.50
2013-06-30 51.73 8.25 16.63 1.44
2013-03-31 41.76 5.05 11.96 1.34
2012-12-31 39.63 5.26 10.34 1.27
2012-09-30 39.35 5.44 9.97 1.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • FONAR has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • FONAR used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • FONAR's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess FONAR's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
FONAR has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is FONAR's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FONAR's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FONAR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FONAR's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of FONAR's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 244.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FONAR Company Filings, last reported 3 months ago.

NasdaqCM:FONR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 113.94 0.32 24.78
2018-12-31 109.86 0.33 23.29
2018-09-30 106.94 0.34 21.19
2018-06-30 102.23 0.48 19.63
2018-03-31 92.56 0.37 15.41
2017-12-31 90.00 0.42 14.19
2017-09-30 85.77 0.47 11.34
2017-06-30 82.91 0.65 10.14
2017-03-31 75.43 1.08 7.75
2016-12-31 69.01 2.09 7.69
2016-09-30 65.69 3.10 7.99
2016-06-30 60.78 4.64 8.53
2016-03-31 58.10 6.32 13.15
2015-12-31 55.64 6.94 12.95
2015-09-30 53.00 7.57 10.97
2015-06-30 50.78 8.32 9.45
2015-03-31 47.00 9.21 7.83
2014-12-31 50.22 9.83 11.67
2014-09-30 48.10 10.45 10.66
2014-06-30 45.91 11.51 9.95
2014-03-31 43.43 12.37 9.59
2013-12-31 42.06 13.58 9.43
2013-09-30 40.26 14.80 9.24
2013-06-30 37.80 15.91 7.87
2013-03-31 34.98 15.92 9.24
2012-12-31 14.14 2.12 14.76
2012-09-30 12.61 2.36 12.91
  • FONAR's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (28.4% vs 0.3% today).
  • Debt is well covered by operating cash flow (5984.6%, greater than 20% of total debt).
  • FONAR earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess FONAR's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FONAR has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from FONAR dividends.
If you bought $2,000 of FONAR shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate FONAR's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate FONAR's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:FONR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as FONAR has not reported any payouts.
  • Unable to verify if FONAR's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of FONAR's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as FONAR has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess FONAR's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FONAR afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FONAR has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim Damadian
COMPENSATION $155,800
AGE 55
TENURE AS CEO 3.4 years
CEO Bio

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 began his career at Fonar in 1985, installing MRI scanners and components for Fonar customers. Over the course of the following 16 years, he held positions of increasing authority, eventually becoming Vice President of Operations. Mr. Damadian was appointed President of the newly formed Health Management Corporation of America (HMCA), a wholly-owned subsidiary of Fonar in 1997. Mr. Damadian served as Treasurer of Fonar Corp. since December 1998. Mr. Damadian served as the President of HMCA since its formation in March 1997. Mr. Damadian served as the Chief Operating Officer of Health Diagnostics LLC. Mr. Damadian served as a Field Service Technician for FONAR. Mr. Damadian became Director of Manufacturing in October 1989 and was promoted to Vice President of Operations of FONAR in July 1992, in which position he served until December, 1998. In 2001, Mr. Damadian left Fonar to form Integrity Healthcare Management, Inc. and Mr. Damadian returned to Fonar as a consultant in 2010. He also serves as a Manager of Imperial Management Services, LLC and a Manager of Health Diagnostics Management, LLC, which are subsidiaries of HMCA. He graduated from Suburban Technical School in 1982, where he studied digital computer technology.

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tim's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the FONAR management team in years:

3.4
Average Tenure
72.5
Average Age
  • The tenure for the FONAR management team is about average.
Management Team

Raymond Damadian

TITLE
Chairman of the Board
COMPENSATION
$459K
AGE
83

Tim Damadian

TITLE
CEO & President
COMPENSATION
$156K
AGE
55
TENURE
3.4 yrs

Luciano Bonanni

TITLE
COO & Executive VP
COMPENSATION
$299K
AGE
64
TENURE
3.1 yrs

Claudette J. Chan

TITLE
Secretary & Director
COMPENSATION
$20K
AGE
81
TENURE
11.5 yrs

Dan Culver

TITLE
Director of Communications
Board of Directors Tenure

Average tenure and age of the FONAR board of directors in years:

31.1
Average Tenure
83
Average Age
  • The average tenure for the FONAR board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Raymond Damadian

TITLE
Chairman of the Board
COMPENSATION
$459K
AGE
83
TENURE
41.5 yrs

Claudette J. Chan

TITLE
Secretary & Director
COMPENSATION
$20K
AGE
81
TENURE
31.8 yrs

Charles O'Data

TITLE
Lead Independent Director
COMPENSATION
$20K
AGE
83

Robert Janoff

TITLE
Independent Director
COMPENSATION
$20K
AGE
92
TENURE
30.4 yrs

Ron Lehman

TITLE
Independent Director
COMPENSATION
$20K
AGE
43
TENURE
7.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Sep 18 Sell Raymond Damadian Individual 26. Sep 18 27. Sep 18 -900 $24.70 $-22,208
25. Sep 18 Sell Raymond Damadian Individual 24. Sep 18 25. Sep 18 -2,400 $24.80 $-58,800
X
Management checks
We assess FONAR's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FONAR has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

FONAR Corporation (NASDAQ:FONR) Delivered A Better ROE Than Its Industry

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for FONAR: 23% = US$20m ÷ US$114m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does FONAR Have A Good Return On Equity? … Careful use of debt to boost returns is often very good for shareholders.

Simply Wall St -

I Built A List Of Growing Companies And FONAR (NASDAQ:FONR) Made The Cut

See our latest analysis for FONAR FONAR's Earnings Per Share Are Growing. … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … Of course, you can do well (sometimes) buying stocks that are not growing earnings and do not have insiders buying shares.

Simply Wall St -

Do Directors Own FONAR Corporation (NASDAQ:FONR) Shares?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Insider Ownership Of FONAR The definition of company insiders can be subjective, and does vary between jurisdictions. … It is good to see some investment by insiders, but I usually like to see higher insider holdings.

Simply Wall St -

A Look At FONAR Corporation's (NASDAQ:FONR) Exceptional Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

Do You Know What FONAR Corporation's (NASDAQ:FONR) P/E Ratio Means?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, FONAR has a P/E ratio of 6.97. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Who Bought FONAR (NASDAQ:FONR) Shares Three Years Ago Are Now Up 34%

On the other hand the share price is higher than it was three years ago. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, FONAR achieved compound earnings per share growth of 11% per year.

Simply Wall St -

One Thing To Remember About The FONAR Corporation (NASDAQ:FONR) Share Price

If you're interested in FONAR Corporation (NASDAQ:FONR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Should You Like FONAR Corporation’s (NASDAQ:FONR) High Return On Capital Employed?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

Where FONAR Corporation (NASDAQ:FONR) Stands In Terms Of Earnings Growth Against Its Industry

Today I will run you through a basic sense check to gain perspective on how FONAR is doing by comparing its latest earnings with its long-term trend as well as the performance of its medical equipment industry peers. … FONR's trailing twelve-month earnings (from 31 December 2018) of US$19m has … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which FONR is growing has slowed down.

Simply Wall St -

Should You Be Excited About FONAR Corporation's (NASDAQ:FONR) 24% Return On Equity?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.24 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites 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, abnormalities, other medical conditions, and injuries. The company operates in two segments, Manufacturing and Servicing of Medical Equipment, and Management of Diagnostic Imaging Centers. 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 markets its scanners to private diagnostic imaging centers and hospitals. It also provides non-medical management services, including development, administration, office space leasing, facilities, equipment, supplies, staffing, credentialing, accounting, billing and collection, assistance with compliance matters, and practice growth and marketing strategies development and implementation services, as well as engages in the training and supervision of non-medical personnel for diagnostic imaging facilities. The company also exports its products to the United Arab Emirates, Switzerland, Canada, England, Germany, and Puerto Rico. It owns and operates 4 diagnostic imaging facilities in Florida; and manages 26 MRI scanning facilities, including 19 facilities located in New York and 7 situated in Florida. The company was founded in 1978 and is based in Melville, New York.

Details
Name: FONAR Corporation
FONR
Exchange: NasdaqCM
Founded: 1978
$144,423,894
6,485,132
Website: http://www.fonar.com
Address: FONAR Corporation
110 Marcus Drive,
Melville,
New York, 11747,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM FONR Common Stock Nasdaq Capital Market US USD 29. Oct 1981
DB FOAA Common Stock Deutsche Boerse AG DE EUR 29. Oct 1981
Number of employees
Current staff
Staff numbers
525
FONAR employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 01:32
End of day share price update: 2019/07/23 00:00
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.