FONR : NASDAQ : Health Care
$29.7 up 0.15 | 0.51%
Today's Range: 29.075 - 30.1
Avg. Daily Volume: 51000.0
09/22/17 - 1:43 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. FONAR CORP is extremely liquid. Currently, the Quick Ratio is 3.50 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 47.83% 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 FY17 Q4 FY16
Net Sales ($mil)20.8918.77
EBITDA ($mil)0.03.21
EBIT ($mil)3.732.42
Net Income ($mil)5.916.37


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)10.148.53
Total Assets ($mil)98.7684.89
Total Debt ($mil)0.524.51
Equity ($mil)77.4452.38


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin52.1753.18
EBITDA Margin0.017.09
Operating Margin17.8612.88
Sales Turnover0.790.86
Return on Assets19.8618.52
Return on Equity25.3330.02
Debt Q4 FY17 Q4 FY16
Current Ratio3.752.21
Debt/Capital0.010.08
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)6.676.43
Div / share0.00.0
EPS0.870.97
Book value / share11.618.14
Institutional Own % n/a n/a
Avg Daily Volume62467.038375.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 48.70 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.53 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 4.90. 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 10.03 Peers 48.70   FONR NA Peers 37.09

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 33.41   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 2.53 Peers 4.90   FONR 23.10 Peers 47.56

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 2.51 Peers 5.32   FONR 6.36 Peers 15.38

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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