Forian (FORA) AI Stock Analysis

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Forian

(NASDAQ:FORA)

48Neutral

Forian's overall stock score reflects significant financial challenges with declining revenue, negative profitability, and liquidity issues. While technical indicators show some potential upward momentum, the negative valuation metrics weigh heavily. The company's strategic acquisition and improved sales momentum offer some positive outlook, but the impact of customer attrition and flat revenue trends remain concerning.

Forian (FORA) vs. S&P 500 (SPY)

Market Cap

$58.47M

Dividend YieldN/A

Average Volume (3M)11.91K

Price to Earnings (P/E)―

Beta (1Y)0.77

Revenue Growth-14.37%

EPS Growth49.22%

CountryUS

Employees36

SectorHealthcare

Sector Strength74

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-0.09

Shares Outstanding31,016,378

10 Day Avg. Volume18,183

30 Day Avg. Volume11,906

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.24

Price to Cash Flow (P/CF)20.90

P/FCF Ratio20.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.00

Price Target Upside168.82% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Forian Business Overview & Revenue Model

Company DescriptionForian Inc. (FORA) is a technology company that provides a suite of software solutions aimed at healthcare and cannabis industries. It focuses on delivering data-driven insights and analytics to help businesses make informed decisions. The company's core products include software platforms that offer operational, clinical, and financial analytics for clients in these sectors.

How the Company Makes MoneyForian makes money primarily through the sale and subscription of its software solutions and analytical services. It generates revenue from licensing fees for its software platforms and subscription fees for ongoing access to its analytics tools and data. Additionally, Forian may engage in partnerships with companies within the healthcare and cannabis industries to offer customized solutions, which can also be a significant revenue stream. The company's earnings are influenced by the demand for data-driven insights in these sectors and its ability to maintain and expand its client base.

Forian Financial Statement Overview

Summary

Forian faces significant challenges with declining revenues and persistent losses. The company's profitability metrics are weak, with negative net profit and EBIT margins. The balance sheet reflects moderate leverage but suffers from negative returns. Cash flows indicate liquidity issues, with negative operating and free cash flows. These factors suggest a need for strategic improvements to achieve financial stability.

Income Statement

Negative

Forian has experienced a declining revenue trend from $28.0M in 2022 to $19.7M in TTM, a significant drop. The gross profit margin for TTM is 66.9%, indicating strong efficiency in production, but the net profit margin is negative due to persistent net losses, which raises concerns about profitability. The EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

Neutral

The debt-to-equity ratio for TTM is 0.91, indicating a moderate level of leverage. The equity ratio stands at 46.8%, reflecting a balanced capital structure. Although showing improvement, the company's ROE is negative due to net losses, which affects overall financial stability.

Cash Flow

Negative

The cash flow from operations is negative in TTM, with a significant free cash flow deficit of $10.8M, suggesting liquidity issues. The operating cash flow to net income ratio is negative, indicating inefficient conversion of net income to cash. Free cash flow has deteriorated significantly compared to the previous year.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
19.71M	20.48M	28.01M	16.88M	544.87K	0.00
	Gross Profit
13.19M	15.00M	21.13M	12.16M	506.58K	-854.00
	EBIT
-6.45M	-5.60M	-20.51M	-26.41M	-4.98M	-1.29M
	EBITDA
-3.56M	2.75M	-18.25M	-24.00M	-4.97M	-1.29M
	Net Income Common Stockholders
-2.58M	11.11M	-25.97M	-26.55M	-4.98M	-1.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.43M	48.34M	20.72M	31.06M	12.17M	150.26K
	Total Assets
57.50M	58.89M	46.26M	56.84M	12.55M	179.04K
	Total Debt
22.00M	24.88M	25.75M	25.13M	0.00	184.30K
	Net Debt
20.97M	18.84M	22.43M	6.47M	-665.46K	183.81K
	Total Liabilities
30.95M	32.71M	33.84M	31.67M	1.29M	460.08K
	Stockholders Equity
26.54M	26.18M	12.42M	25.17M	11.27M	-281.03K
Cash Flow		Free Cash Flow
-10.78M	653.33K	-10.49M	-18.70M	-4.30M	-1.03M
	Operating Cash Flow
-2.07M	728.82K	-8.78M	-17.26M	-4.25M	-1.03M
	Investing Cash Flow
4.03M	7.12M	-6.46M	-1.03M	-11.40M	-151.43K
	Financing Cash Flow
-4.63M	-4.60M	-100.53K	36.28M	16.32M	1.18M

Forian Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.86

Price Trends

50DMA

2.22

Negative

100DMA

2.15

Negative

200DMA

2.24

Negative

Market Momentum

MACD

-0.07

Positive

RSI

40.83

Neutral

STOCH

6.90

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORA, the sentiment is Negative. The current price of 1.86 is below the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.22, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 6.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORA.

Forian Risk Analysis

Forian disclosed 27 risk factors in its most recent earnings report. Forian reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Forian Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEEV	79 Outperform	$35.31B	48.65	13.63%	―	16.20%	34.71%
HSTM	67 Neutral	$967.51M	48.53	5.72%	0.37%	4.51%	32.28%
EHTH	54 Neutral	$191.93M	―	1.10%	―	17.56%	48.73%
FORA	48 Neutral	$58.47M	―	-16.25%	―	-14.37%	49.22%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

* Healthcare Sector Average

Performance Comparison

FORA

Forian

1.86

-1.00

-34.97%

EHTH

Ehealth

5.93

0.82

16.05%

HSTM

HealthStream

31.34

6.55

26.42%

VEEV

Veeva Systems

210.64

-0.55

-0.26%

Forian Earnings Call Summary

Earnings Call Date: Mar 31, 2025 | % Change Since: -7.00% | Next Earnings Date: May 9, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Forian's strategic acquisition and improved sales momentum, but these positives were countered by flat revenue performance and a decline in adjusted EBITDA due to customer attrition and increased costs.

Highlights

Acquisition of Kyber Data Science

Forian acquired Kyber Data Science, expanding its addressable market to include financial service customers and strengthening its data science capabilities.

Improved Sales Momentum

Forian experienced increased sales wins in healthcare services and life sciences, with expanded relationships and renewals at larger amounts than initial contracts.

Strong Financial Position

Forian ended the period with $49.4 million of cash and marketable securities, demonstrating adequate capital to operate and capitalize on growth opportunities.

Lowlights

Flat Revenue Performance

Third-quarter revenue was $4.7 million, down from $5.3 million year-over-year. Revenue has ranged steadily between $4.6 million and $5.4 million since the first quarter of 2024.

Decline in Adjusted EBITDA

Adjusted EBITDA decreased to $0.2 million from $1.2 million in the same quarter last year, primarily due to lower revenue and higher cost of revenue.

Customer Attrition Impact

Revenue was impacted by customer attrition and reduced revenue from early-stage customers struggling to secure funding.

Company Guidance

During the Forian Inc. Q3 2024 earnings call, management provided guidance indicating that the company anticipates reaching the upper end of its 2024 revenue forecast of $19 to $20 million, with adjusted EBITDA expected to remain within the range of negative $0.5 million to positive $0.5 million. The company's Q3 revenue was reported at $4.7 million, showing a sequential flat trend but a slight decline from $5.3 million year-over-year, with a net loss of $0.2 million and adjusted EBITDA of $0.2 million, compared to $4.3 million net income and $1.1 million adjusted EBITDA the previous year. Despite the revenue challenges, Forian expressed optimism about breaking out of its recent revenue range of $4.6 to $5.4 million, driven by increased sales wins and the strategic acquisition of Kyber Data Science, expected to enhance its market position and financial outlook as 2025 approaches.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.