FONAR Corporation
FONAR Corporation Fundamental Analysis
FONAR Corporation (FONR) shows weak financial fundamentals with a PE ratio of 15.30, profit margin of 7.13%, and ROE of 4.34%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 4.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FONR's fundamental strength across five key dimensions:
Efficiency Score
WeakFONR struggles to generate sufficient returns from assets.
Valuation Score
ModerateFONR shows balanced valuation metrics.
Growth Score
ModerateFONR shows steady but slowing expansion.
Financial Health Score
ExcellentFONR maintains a strong and stable balance sheet.
Profitability Score
WeakFONR struggles to sustain strong margins.
Key Financial Metrics
Is FONR Expensive or Cheap?
P/E Ratio
FONR trades at 15.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FONR's PEG of 17.28 indicates potential overvaluation.
Price to Book
The market values FONAR Corporation at 0.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.75 times EBITDA. This is generally considered low.
How Well Does FONR Make Money?
Net Profit Margin
For every $100 in sales, FONAR Corporation keeps $7.13 as profit after all expenses.
Operating Margin
Core operations generate 10.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.34 in profit for every $100 of shareholder equity.
ROA
FONAR Corporation generates $3.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FONAR Corporation generates limited operating cash flow of $9.07M, signaling weaker underlying cash strength.
Free Cash Flow
FONAR Corporation produces free cash flow of $5.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
FONR converts 5.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.000
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FONR Stacks Against Its Sector Peers
| Metric | FONR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.30 | 28.25 | Better (Cheaper) |
| ROE | 4.34% | 780.00% | Weak |
| Net Margin | 7.13% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.22 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 10.00 | 4.66 | Strong Liquidity |
| ROA | 3.48% | -14687.00% (disorted) | Weak |
FONR outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FONAR Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.03%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-47.60%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-26.29%
Industry Style: Defensive, Growth, Innovation
Declining