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Fonar Corp
FONR : NASDAQ : Health Care
$10.71 -0.19 | -1.74%
Today's Range: 10.61 - 10.93
Avg. Daily Volume: 27,000
05/22/15 - 4:00 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. FONAR CORP is extremely liquid. Currently, the Quick Ratio is 2.06 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 61.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)17.0917.61
EBITDA ($mil)4.494.27
EBIT ($mil)3.63.3
Net Income ($mil)2.662.14


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)11.679.43
Total Assets ($mil)79.0477.09
Total Debt ($mil)9.8313.58
Equity ($mil)30.6418.98


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin52.3250.37
EBITDA Margin26.2424.23
Operating Margin21.0518.71
Sales Turnover0.870.84
Return on Assets13.9213.56
Return on Equity35.9355.1
Debt Q2 FY15 Q2 FY14
Current Ratio2.241.88
Debt/Capital0.240.42
Interest Expense0.170.24
Interest Coverage20.9213.9


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)6.436.39
Div / share0.00.0
EPS0.40.33
Book value / share4.762.97
Institutional Own % n/a n/a
Avg Daily Volume28858.038035.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 34.35 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 20.73. To use another comparison, its price-to-book ratio of 2.34 indicates a discount versus the S&P 500 average of 2.86 and a significant discount versus the industry average of 6.74. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, FONAR CORP proves to trade 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 6.72 Peers 34.35   FONR 5.75 Peers 22.85

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 24.87   FONR NA Peers 1.03

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 2.34 Peers 6.74   FONR 3.10 Peers -0.69

Discount. 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 significant discount to 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 1.04 Peers 5.15   FONR 7.26 Peers 7.43

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

FONR is keeping pace with its peers on the basis of sales growth.

 

 

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