FONR : NASDAQ : Health Care
$17.85 | %
Today's Range: 17.65 - 17.95
Avg. Daily Volume: 21400.0
03/24/17 - 4:00 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the second quarter of its fiscal year 2017 has increased 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 industry this quarter as compared to the same quarter a year ago. FONAR CORP is extremely liquid. Currently, the Quick Ratio is 2.59 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 39.57% 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 FY17 Q2 FY16
Net Sales ($mil)18.418.37
EBITDA ($mil)5.475.07
EBIT ($mil)4.614.23
Net Income ($mil)4.243.49


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)7.6912.95
Total Assets ($mil)88.2980.42
Total Debt ($mil)2.096.94
Equity ($mil)62.4644.75


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin53.850.93
EBITDA Margin29.7227.61
Operating Margin25.0423.0
Sales Turnover0.840.87
Return on Assets19.4617.49
Return on Equity27.531.44
Debt Q2 FY17 Q2 FY16
Current Ratio2.82.57
Debt/Capital0.030.13
Interest Expense0.080.0
Interest Coverage60.630.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)6.546.43
Div / share0.00.0
EPS0.640.53
Book value / share9.556.96
Institutional Own % n/a n/a
Avg Daily Volume20603.036074.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 51.83 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.66. 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 7.10 Peers 51.83   FONR 7.78 Peers 25.63

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 41.13   FONR NA Peers 1.13

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 1.93 Peers 4.66   FONR 22.06 Peers 96.34

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.

 

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

However, FONR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FONR 1.62 Peers 5.36   FONR 6.53 Peers 14.70

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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