Fonar Corporation Common Stock (FONR)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $2 million in annual free cash flow (2.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.24, providing financial flexibility

AI Analysis

Fonar Corporation Common Stock is a micro-cap healthcare company valued at $119 million. Revenue stands at $106 million. From a quality standpoint, Fonar shows Altman Z-Score of 2.2 in the grey zone and modest 6% ROE. On valuation, the stock is reasonably priced at 16.4x earnings, with offers a 30% margin of safety vs Graham Number of $27. Growth dynamics show revenue growing at 2.4% and profit growth of 4.7%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $2 million in annual free cash flow (2.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer