Fonar (FONR) AI Stock Analysis

• Market Cap: $101.40M
• Dividend Yield: N/A
• Average Volume (3M): 13.38K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.50
• Revenue Growth: 1.43%
• EPS Growth: -20.12%
• Country: US
• Employees: 520
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.11
• Shares Outstanding: 6,203,465
• 10 Day Avg. Volume: 19,617
• 30 Day Avg. Volume: 13,375
• PEG Ratio: -0.55
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 13.77
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 3.50
• 1Y Price Target: $18.00
• Price Target Upside: 11.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $18.00 ▲(11.94% Upside)

Fonar's overall stock score reflects strong financial performance with robust revenue growth and a stable balance sheet. However, challenges in profitability and cash flow management, along with technical indicators suggesting potential overbought conditions, slightly dampen the outlook. The reasonable valuation provides a positive aspect for growth investors.

Fonar Business Overview & Revenue Model

Company Description

FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates through 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 5 diagnostic imaging facilities in Florida; and manages 39 MRI scanning facilities, including 25 facilities located in New York and 14 situated in Florida. It markets its scanners to private diagnostic imaging centers and hospitals. The company was incorporated in 1978 and is based in Melville, New York.

How the Company Makes Money

Fonar generates revenue primarily through the sale of its MRI systems and related equipment to hospitals, diagnostic centers, and medical facilities. The company also earns income from service and maintenance agreements for their MRI machines, providing ongoing support and upgrades to clients. Additionally, Fonar has established partnerships with healthcare providers and research institutions that may contribute to revenue through collaborative projects or shared clinical studies. The company's ability to capitalize on its niche market of upright MRI technology, coupled with ongoing service contracts, significantly contributes to its overall earnings.

Fonar Financial Statement Overview

Summary

Fonar demonstrates strong revenue growth and gross profitability, with a stable balance sheet characterized by low leverage. However, the decline in net profit margin and significant drop in free cash flow growth are areas of concern. The missing EBIT margin and ROE data for 2025 limit the full assessment of profitability and return on equity.

Income Statement

Fonar has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 43.87% in 2024 to 81.67% in 2025. However, the net profit margin decreased from 17.66% in 2022 to 16.18% in 2025, indicating some pressure on profitability. The EBIT margin was not reported for 2025, which could be a concern. Overall, the company demonstrates strong revenue growth and gross profitability, but there are areas for improvement in net profitability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, which has decreased over time, indicating effective leverage management. However, the return on equity (ROE) was not reported for 2025, which limits the assessment of profitability relative to shareholder equity. The equity ratio remains stable, suggesting a solid capital structure. Overall, the balance sheet shows stability with low leverage, but missing ROE data is a limitation.

Cash Flow

Fonar's cash flow statement reveals a significant decline in free cash flow growth, dropping by 99.98% in 2025, which is concerning. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is stable at 1.0, suggesting that the company is generating sufficient cash relative to its net income. Overall, while the cash flow generation relative to income is adequate, the sharp decline in free cash flow growth is a significant risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	104.35M	104.35M	102.88M	98.65M	97.59M	89.93M
Gross Profit	42.90M	85.22M	45.14M	45.75M	47.01M	43.47M
EBITDA	18.24M	16.30M	28.25M	24.61M	31.65M	23.45M
Net Income	8.33M	8.33M	10.57M	9.38M	12.44M	10.21M
Balance Sheet
Total Assets	216.91M	216.91M	214.25M	200.58M	199.34M	189.51M
Cash, Cash Equivalents and Short-Term Investments	56.45M	56.45M	56.48M	51.31M	48.76M	44.49M
Total Debt	38.92M	38.92M	41.68M	37.01M	38.22M	34.69M
Total Liabilities	56.80M	56.80M	57.46M	49.75M	53.11M	54.14M
Stockholders Equity	172.61M	172.61M	165.97M	157.91M	150.29M	138.42M
Cash Flow
Free Cash Flow	7.47M	7.47M	13.27M	10.13M	10.67M	14.27M
Operating Cash Flow	11.26M	2.02M	14.09M	14.47M	15.30M	19.09M
Investing Cash Flow	-3.80M	-3.80M	-850.74K	-4.34M	-5.18M	-4.82M
Financing Cash Flow	-7.47M	-7.47M	-8.18M	-7.57M	-5.86M	-6.61M

Fonar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FONR, the sentiment is Positive. The current price of 16.08 is above the 20-day moving average (MA) of 15.52, above the 50-day MA of 15.52, and above the 200-day MA of 14.68, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 78.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FONR.

Fonar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FONR	69 Neutral	$101.40M	13.11	4.92%	―	1.43%	-20.12%
SRTS	58 Neutral	$54.42M	48.68	-1.62%	―	3.30%	-112.70%
HYPR	57 Neutral	$116.30M	―	-77.26%	―	-9.59%	8.78%
XTNT	52 Neutral	$84.69M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CTSO	47 Neutral	$61.76M	―	-68.84%	―	-7.81%	65.39%
ICCM	42 Neutral	$68.01M	―	-230.80%	―	-16.46%	4.14%

Fonar Corporate Events

Fonar Receives Acquisition Proposal from CEO Group

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.

Fonar CEO Proposes Acquisition to Buy Outstanding Shares

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.

Fonar Holds Annual Stockholders Meeting and Elections

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.