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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fonar Corp
FONR : NASDAQ : Health Care
$12.22 -0.10 | -0.81%
Today's Range: 11.52 - 12.50
Avg. Daily Volume: 80,800
08/21/14 - 4:00 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. FONAR CORP has strong liquidity. Currently, the Quick Ratio is 1.76 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 126.11% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)17.0411.64
EBITDA ($mil)3.252.31
EBIT ($mil)2.321.63
Net Income ($mil)1.741.08


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)9.599.24
Total Assets ($mil)76.1573.28
Total Debt ($mil)12.3715.92
Equity ($mil)20.979.28


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin50.0457.54
EBITDA Margin19.0819.83
Operating Margin13.6114.0
Sales Turnover0.920.57
Return on Assets14.67.24
Return on Equity53.0357.25
Debt Q3 FY14 Q3 FY13
Current Ratio1.951.63
Debt/Capital0.370.63
Interest Expense0.20.08
Interest Coverage11.4920.63


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)6.416.35
Div / share0.00.0
EPS0.260.17
Book value / share3.271.46
Institutional Own % n/a n/a
Avg Daily Volume86181.0201584.0

Valuation


HOLD. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 29.33 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 19.39. Conducting a second comparison, its price-to-book ratio of 4.31 indicates a significant premium versus the S&P 500 average of 2.68 and a premium versus the industry average of 4.12. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, FONAR CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FONR 8.31 Peers 29.33   FONR 8.59 Peers 17.06

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

FONR is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FONR is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FONR NA Peers 19.88   FONR NA Peers 0.91

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FONR 4.31 Peers 4.12   FONR 107.31 Peers 59.58

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FONR is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

FONR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FONR 1.30 Peers 4.04   FONR 67.29 Peers 5.45

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FONR is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FONR has a sales growth rate that significantly exceeds its peers.

 

 

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