Fonar (FONR) AI Stock Analysis

• Market Cap: $97.55M
• Dividend Yield: N/A
• Average Volume (3M): 15.55K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.48
• 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: 14,579
• 30 Day Avg. Volume: 15,547
• 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: 0.65
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 3.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $16.50 ▲(8.34% Upside)

Fonar's overall stock score reflects strong financial performance in terms of revenue growth and gross profitability, but is tempered by concerns over declining net profit margins and cash flow issues. The technical analysis indicates weak momentum, and while the valuation is reasonable, the lack of a dividend yield may deter some investors. The absence of earnings call and corporate events data limits the assessment to these factors.

Fonar Business Overview & Revenue Model

Company Description

Fonar Corporation (FONR) is a medical technology company focused on the development and manufacturing of advanced magnetic resonance imaging (MRI) systems. The company operates primarily in the healthcare sector, providing innovative imaging solutions that enhance diagnostic capabilities for medical professionals. Fonar's core products include its patented upright MRI systems, which allow patients to be scanned in weight-bearing positions, resulting in improved diagnostic accuracy and patient comfort.

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: Neutral
• Last Price: 15.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15.23 is below the 20-day moving average (MA) of 15.64, below the 50-day MA of 15.52, and above the 200-day MA of 14.71, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FONR.

Fonar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMD	71 Outperform	$268.40M	20.42	10.79%	―	17.11%	45.34%
FONR	64 Neutral	$97.55M	12.60	4.92%	―	1.43%	-20.12%
XTNT	57 Neutral	$112.14M	-22.44	-9.80%	―	15.16%	-39.18%
VREX	52 Neutral	$497.58M	-3.70	-25.57%	―	-1.36%	-479.49%
CTKB	52 Neutral	$522.89M	―	-1.67%	―	-0.85%	61.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NNOX	44 Neutral	$260.79M	―	-32.87%	―	17.36%	9.38%

Fonar Corporate Events

Fonar Corporation Delays Annual Report Filing

Fonar Corporation has announced a delay in filing its Form 10-K (Yearly Report) for the financial period ending June 30, 2025. The company cites unexpected delays as the primary reason for the late filing, which could not be avoided without unreasonable effort or expense. Fonar anticipates submitting the report within 15 calendar days following the original due date. The company does not expect any significant changes in its financial results from the previous fiscal year. Fonar is actively working to comply with all regulatory requirements, as confirmed by the signature of Timothy R. Damadian, President and CEO.

The most recent analyst rating on (FONR) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Fonar stock, see the FONR Stock Forecast page.