Fonar (FONR) AI Stock Analysis

• Market Cap: $117.43M
• Dividend Yield: N/A
• Average Volume (3M): 29.06K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.20
• Revenue Growth: 3.36%
• EPS Growth: -21.15%
• Country: US
• Employees: 520
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.34
• Shares Outstanding: 6,203,465
• 10 Day Avg. Volume: 24,606
• 30 Day Avg. Volume: 29,056
• PEG Ratio: -0.64
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 13.77
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 4.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $20.00 ▲(42.15% Upside)

Overall score reflects solid profitability and a conservative balance sheet, but it is held back by declining revenue and weakening free cash flow growth. Technicals are constructive with strong trend strength above moving averages, though the very high RSI suggests elevated near-term overheating risk. Valuation is moderate based on the stated P/E, with no dividend yield data to improve the profile.

Positive Factors

Conservative Leverage

Fonar's conservative leverage reduces financial risk, providing stability and flexibility for future investments or downturns.

Operational Efficiency

Strong operational efficiency suggests effective cost management, which can sustain profitability even amidst revenue challenges.

Profitability Metrics

Healthy profitability metrics indicate efficient cost control, supporting long-term financial health and competitive positioning.

Negative Factors

Declining Revenue Growth

Significant revenue decline suggests challenges in maintaining market share or demand, potentially impacting future profitability.

Weakening Free Cash Flow

Declining free cash flow growth limits Fonar's ability to invest in growth opportunities or weather financial downturns.

Loss-Making MRI Equipment Operations

Continued losses in MRI equipment operations could strain resources and divert focus from more profitable imaging services.

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 exhibits strong profitability and efficient operations with healthy margins. However, the significant decline in revenue growth and free cash flow growth raises concerns about future growth prospects and cash generation capabilities. The balance sheet remains stable with low leverage, providing a solid foundation for financial resilience.

Income Statement

Fonar's income statement shows a mixed performance. The TTM data reveals a significant decline in revenue growth rate by 21.98%, indicating potential challenges in maintaining sales momentum. However, the company maintains a healthy gross profit margin of 41.11% and a net profit margin of 7.99%, suggesting efficient cost management. The EBIT and EBITDA margins are also strong at 12.71% and 17.48%, respectively, reflecting solid operational efficiency. Despite the revenue decline, profitability metrics remain robust.

Balance Sheet

The balance sheet of Fonar is relatively stable. The debt-to-equity ratio stands at 0.23, indicating a conservative leverage position, which reduces financial risk. The return on equity (ROE) is modest at 5.72%, showing moderate profitability from shareholders' investments. The equity ratio is healthy, with stockholders' equity covering a significant portion of total assets, suggesting financial stability and a strong capital base.

Cash Flow

Fonar's cash flow statement presents some concerns. The free cash flow growth rate has declined by 38.8% in the TTM, which could impact future investment capabilities. The operating cash flow to net income ratio is 0.66, indicating that cash generation from operations is lower relative to net income, which might affect liquidity. However, the free cash flow to net income ratio is also 0.66, showing that a reasonable portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	105.43M	104.35M	102.88M	98.65M	97.59M	89.93M
Gross Profit	43.31M	85.22M	45.14M	45.75M	47.01M	43.47M
EBITDA	15.88M	16.30M	21.13M	24.61M	26.54M	21.18M
Net Income	7.46M	8.33M	10.57M	9.38M	12.44M	10.21M
Balance Sheet
Total Assets	218.35M	216.91M	214.25M	200.58M	199.34M	189.51M
Cash, Cash Equivalents and Short-Term Investments	54.40M	56.45M	56.48M	51.31M	48.76M	44.49M
Total Debt	39.93M	38.92M	41.68M	37.01M	38.22M	34.69M
Total Liabilities	56.96M	56.80M	57.46M	49.75M	53.11M	54.14M
Stockholders Equity	174.87M	172.61M	165.97M	157.91M	150.29M	138.42M
Cash Flow
Free Cash Flow	7.53M	7.45M	13.27M	10.13M	10.67M	14.27M
Operating Cash Flow	11.38M	11.26M	14.09M	14.47M	15.30M	19.09M
Investing Cash Flow	-4.22M	-3.80M	-850.74K	-4.34M	-5.18M	-4.82M
Financing Cash Flow	-7.08M	-7.47M	-8.18M	-7.57M	-5.86M	-6.61M

Fonar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 14.07 is below the 20-day moving average (MA) of 16.82, below the 50-day MA of 15.45, and below the 200-day MA of 14.85, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 81.15 is Negative, neither overbought nor oversold. The STOCH value of 65.07 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
VMD	72 Outperform	$276.77M	22.02	10.53%	―	18.90%	29.22%
FONR	66 Neutral	$117.43M	16.82	4.34%	―	3.36%	-21.15%
XTNT	66 Neutral	$95.76M	67.06	3.64%	―	16.88%	―
CTKB	58 Neutral	$710.93M	-55.00	-3.36%	―	-2.18%	-30.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$573.46M	-7.92	-13.95%	―	4.14%	-45.29%
NNOX	47 Neutral	$192.56M	-3.42	-34.75%	―	15.19%	-3.32%

Fonar Corporate Events

Fonar to Be Taken Private in Insider-Led Merger

On December 23, 2025, FONAR Corporation entered into a merger agreement under which FONAR, LLC, an acquisition vehicle led by CEO Timothy Damadian and other company insiders, will acquire all outstanding FONAR shares and take the company private via a cash transaction that values common and Class B shares at $19.00, Class C shares at $6.34 and Class A preferred shares at $10.50. An independent special committee and the disinterested board members unanimously deemed the deal fair and in the best interests of stockholders, and the transaction—backed by a $35 million bank facility, at least $10 million of additional debt financing and at least $45 million of equity commitments—remains subject to approval by both a majority of all voting shares and a separate majority of disinterested shareholders, as well as regulatory clearances, after which FONAR’s stock would be delisted from Nasdaq and deregistered, shifting control firmly to the insider-led buyer group and eliminating public-market liquidity for current investors.

The most recent analyst rating on (FONR) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Fonar stock, see the FONR Stock Forecast page.