About FONAR CORP
FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates through two segments, Medical Equipment segment, and Physician Management and Diagnostic services segment. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters and the development and implementation of practice growth and marketing strategies.
The company owns and operates 5 diagnostic imaging facilities in Florida; and manages 39 MRI scanning facilities, including 25 facilities located in New York and 14 situated in Florida. It markets its scanners to private diagnostic imaging centers and hospitals. The company was incorporated in 1978 and is based in Melville, New York.
FONR operates in the Manufacturing | Medical Equipment | headquartered in MELVILLE, New York | approximately 480 employees | led by CEO Timothy R. Damadian.
$97 million 7.7x P/E 0.6x P/B 4.9x EV/EBITDA 7.0% ROE 6.0% rev. growth
FONAR CORP earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #45 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 96/100, which places FONR in the top 4 percent of all stocks on this measure. stability at 88/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, FONR ranks 24th out of 50 peers, placing it in the 52nd percentile. At $97 million, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
FONAR CORP's quality score of 83/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 7.0% exceeds the sector median of -2.0%. Gross margins of 88.0% reflect strong pricing power and competitive moats. Operating margins of 13.0% sit above the 3.0% sector average.
Net margins of 12.0% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 96/100 puts FONR in the top 4 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 7.7x, an EV/EBITDA of 4.9x, a price-to-book of 0.6x, a price-to-sales of 0.9x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 62/100 shows FONR is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of 6.0% provides a moderate fundamental underpinning. A beta of 0.04 means FONAR CORP moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Small-cap illiquidity. At $97 million, FONR has lower trading volume and wider bid-ask spreads than large-cap peers. This can amplify short-term price volatility and make it harder for larger investors to build or exit positions without moving the stock.
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support FONAR CORP's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
FONAR CORP earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #45 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position FONR above the majority of the market.
Explore the full FONR analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
