FONR : NASDAQ : Health Care
$23.32 -0.05 | -0.21%
Today's Range: 23.01 - 23.66
Avg. Daily Volume: 52,000
07/25/16 - 12:45 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the third 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 2.56 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 46.23% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)18.6217.1
EBITDA ($mil)4.933.56
EBIT ($mil)4.12.67
Net Income ($mil)3.012.02


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)13.157.83
Total Assets ($mil)82.0174.54
Total Debt ($mil)6.329.21
Equity ($mil)47.7632.66


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin50.449.03
EBITDA Margin26.4620.8
Operating Margin22.015.6
Sales Turnover0.870.93
Return on Assets18.3615.14
Return on Equity31.5334.56
Debt Q3 FY16 Q3 FY15
Current Ratio2.742.13
Debt/Capital0.120.22
Interest Expense0.130.17
Interest Coverage32.2615.78


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)6.436.43
Div / share0.00.0
EPS0.450.31
Book value / share7.425.08
Institutional Own % n/a n/a
Avg Daily Volume51748.029462.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 62.82 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 3.16 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.84. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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 10.33 Peers 62.82   FONR 10.04 Peers 33.31

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 29.14   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 3.16 Peers 4.84   FONR 32.74 Peers 159.18

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 2.11 Peers 4.71   FONR 3.29 Peers 20.16

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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