📊 FONR Key Takeaways
Is Fonar Corp. (FONR) a Good Investment?
FONAR displays a fortress balance sheet with zero meaningful debt and exceptional liquidity, but is fundamentally a stagnant business with flat net income growth (0% YoY) and anemic free cash flow conversion (1.3% margin). Weak capital returns (ROE 3.3%, ROA 2.7%) and absence of insider buying signal limited growth prospects and inefficient capital deployment.
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.
Fonar Corp. Key Strengths (FONR)
- Zero long-term debt with $53.6M cash position provides financial stability
- Exceptional liquidity (9.18x current ratio) reduces bankruptcy risk
- Solid operating profitability (12.7% operating margin) in medical device sector
- 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
- Stagnant growth: 1.4% revenue and 0% net income growth indicates mature/declining business
- Poor capital efficiency: ROE 3.3% and ROA 2.7% suggest excess cash sitting idle without productive deployment
- Weak cash generation: $1.0M free cash flow on $6.0M net income indicates working capital issues or capital intensity mismatch
- 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 trajectory (need reversal from 1.4% stagnation)
- Free cash flow margin expansion (currently only 1.3%, well below net margin of 7.6%)
- Return on equity improvement (3.3% is well below cost of capital for equity holders)
- 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
The relatively thin 1.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 9.18x 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 |
|---|---|---|---|
| Q3 2026 | $26.5M | $1.6M | $0.24 |
| 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 |
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 Grade of B from Claude (B) and ChatGPT (B) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FONR's key strengths?
Claude: Zero long-term debt with $53.6M cash position provides financial stability. Exceptional liquidity (9.18x current ratio) reduces bankruptcy risk. 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: Stagnant growth: 1.4% revenue and 0% net income growth indicates mature/declining business. Poor capital efficiency: ROE 3.3% and ROA 2.7% suggest excess cash sitting idle without productive deployment. 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 $78.1M.
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 grade reflects both perspectives for balanced insights.
What is FONR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Fonar Corp. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FONR stock overvalued or undervalued?
Valuation metrics for FONR: ROE of 3.3% (sector avg: 15%), net margin of 7.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FONR's AI grade for 2026?
Our dual AI analysis gives Fonar Corp. a combined B grade 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 $3.4M, with capital expenditures of $2.4M. FCF margin is 1.3%.
How does FONR compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 7.6% (avg: 12%), ROE 3.3% (avg: 15%), current ratio 9.18 (avg: 2).