Fonar (FONR) AI Stock Analysis

• Market Cap: $93.70M
• Dividend Yield: N/A
• Average Volume (3M): 17.10K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.42
• 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: 25,898
• 30 Day Avg. Volume: 17,100
• 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: 0.73
• 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: 59 Neutral
• Price Target: $15.50 ▲(1.77% Upside)

Fonar's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. While the company shows strong profitability and a stable balance sheet, the decline in revenue and cash flow growth is concerning. Technical analysis indicates bearish momentum, which could pressure the stock price. The valuation is reasonable, providing some support to the overall score.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FONR, the sentiment is Negative. The current price of 15.23 is above the 20-day moving average (MA) of 15.09, below the 50-day MA of 15.38, and above the 200-day MA of 14.67, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FONR.

Fonar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMD	68 Neutral	$242.93M	19.33	10.53%	―	18.90%	29.22%
XTNT	65 Neutral	$103.88M	-20.78	3.64%	―	16.88%	―
FONR	59 Neutral	$93.70M	13.32	4.34%	―	3.36%	-21.15%
CTKB	58 Neutral	$703.26M	―	-3.36%	―	-2.18%	-30.96%
VREX	52 Neutral	$489.70M	-3.64	-25.57%	―	-1.36%	-479.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NNOX	40 Underperform	$189.37M	―	-32.87%	―	17.36%	9.38%

Fonar Corporate Events

FONAR Corporation Reports Q3 2025 Earnings

FONAR Corporation, a Delaware-based company, specializes in the research, development, production, and marketing of medical scanning equipment using Magnetic Resonance Imaging (MRI) technology. It also provides comprehensive management services to diagnostic imaging facilities through its subsidiary, Health Management Corporation of America.

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.