FONR : NASDAQ : Health Care
$20.26 | %
Today's Range: 20.00 - 20.87
Avg. Daily Volume: 43,400
09/23/16 - 4:00 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. FONAR CORP is extremely liquid. Currently, the Quick Ratio is 2.07 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 36.43% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)18.7716.88
EBITDA ($mil)0.04.08
EBIT ($mil)2.423.2
Net Income ($mil)6.375.7


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)8.539.45
Total Assets ($mil)84.8976.49
Total Debt ($mil)4.518.19
Equity ($mil)52.3838.39


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin48.9747.75
EBITDA Margin0.024.15
Operating Margin12.8818.94
Sales Turnover0.860.9
Return on Assets18.5216.87
Return on Equity30.0233.62
Debt Q4 FY16 Q4 FY15
Current Ratio2.212.32
Debt/Capital0.080.18
Interest Expense0.00.16
Interest Coverage0.020.36


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)6.436.43
Div / share0.00.0
EPS0.960.86
Book value / share8.145.97
Institutional Own % n/a n/a
Avg Daily Volume46666.040881.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 43.10 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 24.75. To use another comparison, its price-to-book ratio of 2.50 indicates valuation on par with the S&P 500 average of 2.77 and a significant discount versus the industry average of 4.94. The price-to-sales ratio is below the S&P 500 average and is well below 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 8.59 Peers 43.10   FONR NA Peers 28.28

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FONR NA Peers 24.56   FONR NA Peers 0.82

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 2.50 Peers 4.94   FONR 21.53 Peers 22.95

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.

 

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

FONR is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FONR 1.79 Peers 14.89   FONR 6.25 Peers 18.12

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

FONR significantly trails its peers on the basis of sales growth

 

 

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