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Fonar Corp (FONR)
NASDAQ:FONR
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Fonar (FONR) AI Stock Analysis

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FONR

Fonar

(NASDAQ:FONR)

Rating:77Outperform
Price Target:
$17.50
▲(12.11%Upside)
Fonar's overall stock score of 77 reflects its solid financial performance and positive technical indicators, bolstered by a favorable corporate event. The acquisition proposal by the CEO suggests a strategic move to enhance shareholder value. However, challenges in revenue growth and cash flow volatility remain areas for improvement.

Fonar (FONR) vs. SPDR S&P 500 ETF (SPY)

Fonar Business Overview & Revenue Model

Company DescriptionFonar Corporation, founded in 1978, is a U.S.-based company that operates in the healthcare sector, specifically focusing on medical imaging. It is renowned for being a pioneer in the development of MRI (Magnetic Resonance Imaging) technology. The company's core products include MRI scanners, with a specialization in upright MRI systems, which allow patients to be scanned in various positions, including weight-bearing positions. This capability is particularly beneficial for diagnosing certain conditions that may not be as apparent in traditional, supine MRI scans.
How the Company Makes MoneyFonar Corporation generates revenue primarily through the sale of its MRI scanning systems. The company's flagship product, the Upright MRI, is a significant contributor to its income. In addition to direct sales, Fonar also earns money from service and maintenance contracts for its MRI machines, ensuring ongoing relationships with healthcare providers who require regular maintenance and technical support. Furthermore, Fonar benefits from leasing arrangements and providing ancillary services, such as assisting with the setup and installation of their MRI systems. While specific partnerships and collaborations may influence earnings, Fonar's revenue model is largely centered around sales and services related to its innovative MRI technology.

Fonar Financial Statement Overview

Summary
Fonar demonstrates solid financial performance with strong profitability margins and a conservative balance sheet. Despite declining revenue growth, the company maintains healthy EBIT and EBITDA margins, and a strong equity base. Cash flow generation is positive but shows some volatility, indicating a need for improved cash management.
Income Statement
72
Positive
Fonar's income statement shows satisfactory performance with strong profitability metrics. The TTM period's gross profit margin stands at 35.3%, and the net profit margin is 14.2%, reflecting effective cost management and profitability. However, revenue growth has been challenging, with a decline from the previous year, indicating potential market or operational pressures. EBIT and EBITDA margins in the TTM are also healthy at 15.5% and 23.4%, respectively, showcasing operational efficiency despite revenue headwinds.
Balance Sheet
78
Positive
The balance sheet reflects strong financial health with a solid equity base. The debt-to-equity ratio is conservative at 0.23, highlighting low leverage and financial stability. The equity ratio is robust at 79.9%, indicating strong asset backing by shareholders' equity. Return on equity is commendable at 6.4% for the TTM, suggesting decent returns for shareholders. Overall, the balance sheet positions Fonar well for future growth and risk management.
Cash Flow
68
Positive
Cash flow analysis reveals positive, though fluctuating, performance. Free cash flow in the TTM is positive, but the growth rate has slowed due to increased capital expenditures. The operating cash flow to net income ratio is 1.05, indicating adequate cash generation relative to earnings. However, the decline in free cash flow compared to previous periods raises some concerns about cash sustainability if revenue growth continues to be a challenge.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue102.88M98.65M97.59M89.93M85.69M
Gross Profit45.14M45.75M47.01M43.47M42.39M
EBITDA28.25M24.61M31.65M23.45M19.14M
Net Income10.57M9.38M17.23M13.67M11.70M
Balance Sheet
Total Assets214.25M200.58M199.34M189.51M180.26M
Cash, Cash Equivalents and Short-Term Investments56.48M51.31M48.76M44.49M36.83M
Total Debt41.68M37.01M38.22M34.69M35.77M
Total Liabilities57.46M49.75M53.11M54.14M54.02M
Stockholders Equity165.97M157.91M150.29M138.42M126.19M
Cash Flow
Free Cash Flow13.27M10.13M10.67M14.27M12.76M
Operating Cash Flow14.09M14.47M15.30M19.09M20.40M
Investing Cash Flow-850.74K-4.34M-5.18M-4.82M7.42M
Financing Cash Flow-8.18M-7.57M-5.86M-6.61M-4.90M

Fonar Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.61
Price Trends
50DMA
15.01
Positive
100DMA
13.98
Positive
200DMA
14.70
Positive
Market Momentum
MACD
0.27
Positive
RSI
51.10
Neutral
STOCH
6.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FONR, the sentiment is Neutral. The current price of 15.61 is below the 20-day moving average (MA) of 15.89, above the 50-day MA of 15.01, and above the 200-day MA of 14.70, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FONR.

Fonar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$98.50M12.785.00%0.29%-22.13%
64
Neutral
$91.93M50.863.46%24.75%-61.29%
53
Neutral
$82.51M-67.86%0.34%6.20%
51
Neutral
$7.30B0.27-62.71%2.44%15.02%0.60%
50
Neutral
$78.02M-26.20%20.81%-498.66%
45
Neutral
$70.07M-173.47%0.34%9.38%
43
Neutral
$53.22M-94.65%-5.86%50.76%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FONR
Fonar
15.61
-2.39
-13.28%
CTSO
Cytosorbents
0.87
-0.33
-27.50%
XTNT
Xtant Medical Holdings
0.56
-0.11
-16.42%
SRTS
Sensus Healthcare
5.58
-0.43
-7.15%
HYPR
Hyperfine
1.03
-0.12
-10.43%
ICCM
Icecure Medical
1.01
0.37
57.81%

Fonar Corporate Events

M&A Transactions
Fonar Receives Acquisition Proposal from CEO Group
Neutral
Jul 21, 2025

On July 18, 2025, FONAR Corporation announced that a Special Committee of its Board of Directors received a proposal from a group led by CEO Timothy Damadian to acquire all of the company’s outstanding capital stock not currently owned by the group for $17.25 per share in cash. This proposal could significantly impact FONAR’s ownership structure and potentially influence its market positioning and stakeholder interests.

M&A Transactions
Fonar CEO Proposes Acquisition to Buy Outstanding Shares
Positive
Jul 9, 2025

On July 9, 2025, FONAR Corporation announced a proposal from CEO Timothy Damadian for a potential acquisition by a group led by him, including management and board members, to buy all outstanding shares not currently owned. The proposed acquisition offers a premium of at least 10% over the average closing price of FONAR’s stock for the 90 days before July 1, 2025, potentially impacting the company’s market positioning and shareholder value.

Executive/Board ChangesShareholder Meetings
Fonar Holds Annual Stockholders Meeting and Elections
Neutral
May 19, 2025

On May 19, 2025, Fonar Corporation held its Annual Meeting of Stockholders at the Hilton Long Island Huntington Hotel in Melville, New York. During the meeting, stockholders elected five directors, approved executive compensation, and ratified CohnReznick LLP as the auditors for the fiscal year ending June 30, 2025. The re-elected directors include Timothy R. Damadian, M.D., Claudette J. V. Chan, Ronald G. Lehman, Richard E Turk, and Jessica Maher.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 10, 2025