FONR : NASDAQ : Health Care
$28.0 -0.25 | -0.89%
Today's Range: 27.75 - 28.75
Avg. Daily Volume: 69300.0
07/27/17 - 4:00 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the third 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 3.26 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 44.80% 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 FY17 Q3 FY16
Net Sales ($mil)20.0118.62
EBITDA ($mil)6.874.93
EBIT ($mil)6.04.1
Net Income ($mil)5.93.01


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)7.7513.15
Total Assets ($mil)91.8282.01
Total Debt ($mil)1.086.32
Equity ($mil)69.1647.76


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin58.450.4
EBITDA Margin34.3426.46
Operating Margin30.022.0
Sales Turnover0.830.87
Return on Assets21.8618.36
Return on Equity29.0331.53
Debt Q3 FY17 Q3 FY16
Current Ratio3.522.74
Debt/Capital0.020.12
Interest Expense0.070.0
Interest Coverage85.760.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)6.596.43
Div / share0.00.0
EPS0.880.45
Book value / share10.57.42
Institutional Own % n/a n/a
Avg Daily Volume65040.023951.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 47.54 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 2.76 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 5.47. 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 9.55 Peers 47.54   FONR 11.99 Peers 29.38

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 25.74   FONR NA Peers 0.99

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 2.76 Peers 5.47   FONR 33.48 Peers 113.75

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 5.22   FONR 6.20 Peers 14.04

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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