📊 FONR Key Takeaways
Is Fonar Corp. (FONR) a Good Investment?
FONAR exhibits solid profitability metrics with 13.8% operating margins and 8.4% net margins, supported by fortress-like balance sheet strength with minimal debt and 10x current ratio. However, stagnant revenue growth (+1.4% YoY), deteriorating cash flow generation (negative FCF of -404K), and weak return metrics (2.4% ROE, 2.0% ROA) signal operational challenges despite financial stability.
FONAR shows solid financial resilience, with a cash-rich balance sheet, negligible debt, very high liquidity, and positive net income. However, growth quality looks modest: revenue increased only slightly, earnings were essentially flat, returns on equity and assets are low, and free cash flow turned negative despite profitability. The fundamentals support stability more than strong compounding at this stage.
Why Buy Fonar Corp. Stock? FONR Key Strengths
- Exceptional balance sheet strength with 176.9M equity, 53.0M cash, and effectively zero debt (7.0K LTD)
- Robust liquidity position with 10.0x current ratio and 9.80x quick ratio, providing significant financial flexibility
- Solid profitability metrics with 13.8% operating margin and 8.4% net margin in a medical device sector
- High interest coverage ratio of 106.3x demonstrates minimal financial distress risk
- Exceptionally strong balance sheet with high cash reserves and almost no long-term debt
- Very strong liquidity, with current and quick ratios near 10x
- Profitable operations with positive operating income and solid interest coverage
FONR Stock Risks: Fonar Corp. Investment Risks
- Anemic revenue growth at only 1.4% YoY indicates potential market saturation or competitive headwinds in medical imaging
- Negative free cash flow of -404K despite 4.3M net income suggests capital intensity exceeds earnings generation
- Weak return on equity (2.4%) and return on assets (2.0%) indicate inefficient capital deployment despite large asset base of 217.2M
- Operating cash flow of 1.9M significantly lags net income of 4.3M, raising earnings quality concerns
- Revenue growth is weak, suggesting limited operating momentum
- Returns on equity and assets are low, indicating inefficient capital utilization
- Free cash flow is negative, which raises questions about earnings-to-cash conversion
Key Metrics to Watch
- Revenue growth acceleration - critical to justify investment case
- Free cash flow trend - must return to positive to validate earnings sustainability
- Return on equity and ROA improvement - capital efficiency is primary concern
- Operating cash flow to net income ratio - monitor earnings quality deterioration
- Operating cash flow and free cash flow consistency
- Revenue growth and improvement in ROE/ROA
Fonar Corp. (FONR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 10.00x current ratio provides a solid financial cushion.
FONR Profit Margin, ROE & Profitability Analysis
FONR vs Healthcare Sector: How Fonar Corp. Compares
How Fonar Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fonar Corp. Stock Overvalued? FONR Valuation Analysis 2026
Based on fundamental analysis, Fonar Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fonar Corp. Balance Sheet: FONR Debt, Cash & Liquidity
FONR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fonar Corp.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.47 reflects profitable operations.
FONR Revenue Growth, EPS Growth & YoY Performance
FONR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $25.0M | $2.0M | $0.28 |
| Q3 2025 | $25.7M | $1.9M | $0.27 |
| Q2 2025 | $25.0M | $2.0M | $0.31 |
| Q1 2025 | $25.0M | $2.3M | $0.33 |
| Q3 2024 | $25.4M | $1.9M | $0.30 |
| Q2 2024 | $24.3M | $2.2M | $0.34 |
| Q1 2024 | $23.2M | $2.0M | $0.31 |
| Q3 2023 | $24.6M | $2.3M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fonar Corp. Dividends, Buybacks & Capital Allocation
FONR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fonar Corp. (CIK: 0000355019)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FONR
What is the AI rating for FONR?
Fonar Corp. (FONR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FONR's key strengths?
Claude: Exceptional balance sheet strength with 176.9M equity, 53.0M cash, and effectively zero debt (7.0K LTD). Robust liquidity position with 10.0x current ratio and 9.80x quick ratio, providing significant financial flexibility. ChatGPT: Exceptionally strong balance sheet with high cash reserves and almost no long-term debt. Very strong liquidity, with current and quick ratios near 10x.
What are the risks of investing in FONR?
Claude: Anemic revenue growth at only 1.4% YoY indicates potential market saturation or competitive headwinds in medical imaging. Negative free cash flow of -404K despite 4.3M net income suggests capital intensity exceeds earnings generation. ChatGPT: Revenue growth is weak, suggesting limited operating momentum. Returns on equity and assets are low, indicating inefficient capital utilization.
What is FONR's revenue and growth?
Fonar Corp. reported revenue of $51.6M.
Does FONR pay dividends?
Fonar Corp. does not currently pay dividends.
Where can I find FONR SEC filings?
Official SEC filings for Fonar Corp. (CIK: 0000355019) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FONR's EPS?
Fonar Corp. has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FONR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fonar Corp. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FONR stock overvalued or undervalued?
Valuation metrics for FONR: ROE of 2.4% (sector avg: 15%), net margin of 8.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FONR stock in 2026?
Our dual AI analysis gives Fonar Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FONR's free cash flow?
Fonar Corp.'s operating cash flow is $1.9M, with capital expenditures of $2.3M. FCF margin is -0.8%.
How does FONR compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.4% (avg: 12%), ROE 2.4% (avg: 15%), current ratio 10.00 (avg: 2).