FONR : NASDAQ : Health Care
$21.04 -0.28 | -1.30%
Today's Range: 20.89 - 21.60
Avg. Daily Volume: 57,000
08/30/16 - 2:14 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. 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 2.56 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 Volume56692.027552.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 42.64 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 25.13. To use another comparison, its price-to-book ratio of 2.84 indicates valuation on par with the S&P 500 average of 2.82 and a significant discount versus the industry average of 4.82. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly 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 9.28 Peers 42.64   FONR 9.02 Peers 27.83

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 24.02   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 2.84 Peers 4.82   FONR 32.74 Peers 22.14

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 1.90 Peers 14.69   FONR 3.29 Peers 17.80

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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