Fonar Corporation
Find Ratings ReportsFONAR CORP's gross profit margin for the second quarter of its fiscal year 2024 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. FONAR CORP is extremely liquid. Currently, the Quick Ratio is 9.05 which clearly shows the ability to cover any short-term cash needs. FONR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.35% 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 FY24 | Q2 FY23 |
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Net Sales ($mil) | 25.39 | 24.26 |
EBITDA ($mil) | 6.11 | 5.33 |
EBIT ($mil) | 4.89 | 4.23 |
Net Income ($mil) | 3.76 | 2.23 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 53.26 | 49.54 |
Total Assets ($mil) | 202.26 | 197.5 |
Total Debt ($mil) | 35.82 | 38.21 |
Equity ($mil) | 163.89 | 154.09 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 47.7 | 50.59 |
EBITDA Margin | 24.04 | 21.98 |
Operating Margin | 19.24 | 17.45 |
Sales Turnover | 0.51 | 0.49 |
Return on Assets | 6.4 | 4.46 |
Return on Equity | 7.91 | 5.72 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 9.35 | 8.78 |
Debt/Capital | 0.18 | 0.2 |
Interest Expense | 0.01 | 0.01 |
Interest Coverage | 488.5 | 325.54 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 6.71 | 6.92 |
Div / share | 0.0 | 0.0 |
EPS | 0.54 | 0.32 |
Book value / share | 24.42 | 22.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 18589.0 | 22802.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 21.06 for the Ambulatory Health Care Services subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 0.91 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 3.19. The current price-to-sales ratio is well below the S&P 500 average, but above the subsector average. Upon assessment of these and other key valuation criteria, FONAR CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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FONR 12.09 | Peers 21.06 | FONR 9.82 | Peers 54.00 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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FONR NA | Peers 15.17 | FONR NA | Peers 0.67 | |||||||||||||||||||||
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. |
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Price/Book |
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Earnings Growth |
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FONR 0.91 | Peers 3.19 | FONR 47.20 | Peers 33.66 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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FONR 1.46 | Peers 1.25 | FONR 5.77 | Peers 10.95 | |||||||||||||||||||||
Premium. 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 premium to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FONR significantly trails its peers on the basis of sales growth. |
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