FONR : NASDAQ : Health Care
$19.7 -0.6 | -3.0%
Today's Range: 19.85 - 20.25
Avg. Daily Volume: 30100.0
01/19/17 - 2:14 PM ET

Financial Analysis


FONAR CORP's gross profit margin for the first quarter of its fiscal year 2017 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 2.41 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 41.06% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)18.7317.61
EBITDA ($mil)5.614.44
EBIT ($mil)4.753.62
Net Income ($mil)3.572.86


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)7.9910.97
Total Assets ($mil)86.1479.03
Total Debt ($mil)3.17.57
Equity ($mil)58.241.26


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin53.8451.52
EBITDA Margin29.9425.23
Operating Margin25.3720.53
Sales Turnover0.860.87
Return on Assets19.0716.75
Return on Equity28.2332.08
Debt Q1 FY17 Q1 FY16
Current Ratio2.572.38
Debt/Capital0.050.16
Interest Expense0.10.0
Interest Coverage48.50.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)6.546.43
Div / share0.00.0
EPS0.540.43
Book value / share8.96.41
Institutional Own % n/a n/a
Avg Daily Volume28812.040223.0

Valuation


BUY. FONAR CORP's P/E ratio indicates a significant discount compared to an average of 69.11 for the Health Care Equipment & Supplies industry and a significant discount compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.21 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 8.30. 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 7.91 Peers 69.11   FONR 7.70 Peers 23.72

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 23.81   FONR NA Peers 1.00

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 2.21 Peers 8.30   FONR 24.50 Peers 84.51

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 1.73 Peers 5.77   FONR 8.46 Peers 17.12

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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