IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
FONR: A Hidden Gem in Specialty Diagnostic Equipment
Blank Capital Research Team
•
Executive Summary
Fonar Corporation (FONR) is a pioneer in the MRI industry and the manufacturer of the Upright Multi-Position MRI, the only scanner that allows patients to be imaged in weight-bearing positions.
Investment Thesis
Fonar owns a unique, technology-driven moat in the diagnostic imaging market. Their upright MRI is the gold standard for diagnosing spinal issues and other conditions that are invisible when a patient is lying flat in a traditional tube MRI. This creates a high-demand, high-margin niche that Fonar dominates. Furthermore, the company owns and operates its own network of diagnostic centers (HMCA), providing a stable stream of patient revenue that is decoupled from the equipment sales cycle. With a very low valuation and a strong balance sheet, FONR is a classic 'hidden' medical tech asset.
Key Growth Drivers
Exclusive MRI Technology
The Upright MRI is a proprietary technology with a massive diagnostic advantage for spinal care, ensuring steady demand from orthopedic clinics.
Vertically Integrated Model
Owning the diagnostic centers allows Fonar to capture the full profit chain of MRI imaging, from machine manufacturing to clinical billing.
Value Mispricing
The stock trades at an incredibly low multiple of its earnings and cash flow, reflecting the market's complete ignore of Fonar's unique technological edge.
Valuation & Financial Modeling
FONR is a micro-cap stock that perennially trades at a 'forgotten' valuation. Buying Fonar at current levels is a way to acquire a profitable, high-tech medical business at a deep-value price. The stock offers significant upside if the company ever initiates a major capital return program.
Risk Factors & Bear Case
The primary risk is the limited market for specialized upright MRIs compared to standard diagnostic units. Additionally, as a micro-cap, the stock can be highly illiquid and lacks institutional coverage.
Conclusion
Fonar Corporation is a unique value play in medical imaging. It offers an irreplicable technological advantage at a bargain price. Rated 'Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
Unlock Investment Thesis
Sign up for free access to institutional-quality research tools.
Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 47.5GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
6.5%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, FONAR CORP (FONR) receives a "Hold" rating with a composite score of 51.8/100, ranked #274 out of 4446 stocks. Key factor scores: Quality 48/100, Value 50/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
FONAR CORP (FONR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FONAR CORP Do?
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. FONAR CORP (FONR) is classified as a micro-cap stock in the Healthcare sector, specifically within the Medical Equipment industry. The company is led by CEO Timothy R. Damadian and employs approximately 480 people, headquartered in MELVILLE, New York. With a market capitalization of $117M, FONR is one of the notable companies in the Healthcare sector.
FONAR CORP (FONR) Stock Rating — Hold (April 2026)
As of April 2026, FONAR CORP receives a Hold rating with a composite score of 51.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FONR ranks #274 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, FONAR CORP ranks #9 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FONR Stock Price and 52-Week Range
FONAR CORP (FONR) currently trades at $18.68. The stock gained $0.07 (0.4%) in the most recent trading session. The 52-week high for FONR is $18.86, which means the stock is currently trading -1.0% from its annual peak. The 52-week low is $12.00, putting the stock 55.7% above its annual trough. Recent trading volume was 60K shares, suggesting relatively thin trading activity.
Is FONR Overvalued or Undervalued? — Valuation Analysis
FONAR CORP (FONR) carries a value factor score of 50/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 11.11x, compared to the Healthcare sector average of 23.63x — a discount of 53%. The price-to-book ratio stands at 0.72x, versus the sector average of 2.75x. The price-to-sales ratio is 1.13x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, FONR trades at 9.52x EV/EBITDA, versus 6.34x for the sector. The EV/EBIT multiple is 10975.24x.
Overall, FONR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FONAR CORP Profitability — ROE, Margins, and Quality Score
FONAR CORP (FONR) earns a quality factor score of 48/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 6.5%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.9% versus the sector average of -33.1%.
On a margin basis, FONAR CORP reports gross margins of 88.3%, compared to 71.5% for the sector. The operating margin is 11.8% (sector: -66.1%). Net profit margin stands at 10.1%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 2.4% on a trailing basis, compared to 10.6% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
FONR Debt, Balance Sheet, and Financial Health
FONAR CORP has a debt-to-equity ratio of 33.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 10.00x, indicating strong short-term liquidity. Total debt on the balance sheet is $142,523.
FONR has a beta of 0.35, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FONAR CORP is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FONAR CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, FONAR CORP reported revenue of $104M. Net income for the quarter was $11M. Gross margin was 88.3%. Operating income came in at $12M.
In Q2 2026, FONAR CORP reported revenue of $26M. Net income for the quarter was $3M. Revenue grew 2.4% year-over-year compared to Q2 2025. Operating income came in at $3M.
In Q1 2026, FONAR CORP reported revenue of $26M. Net income for the quarter was $3M. Revenue grew 4.3% year-over-year compared to Q1 2025. Operating income came in at $3M.
In FY 2025, FONAR CORP reported revenue of $104M. Net income for the quarter was $8M. Revenue grew 1.4% year-over-year compared to FY 2024. Operating income came in at $12M.
Over the past 8 quarters, FONAR CORP has demonstrated a growth trajectory, with revenue expanding from $103M to $104M. Investors analyzing FONR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FONR Dividend Yield and Income Analysis
FONAR CORP (FONR) does not currently pay a dividend. This is common among smaller companies in the Medical Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
FONR Momentum and Technical Analysis Profile
FONAR CORP (FONR) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 43/100 reflects moderate short selling activity.
FONR vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing FONR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FONR vs S&P 500 (SPY) comparison to assess how FONAR CORP stacks up against the broader market across all factor dimensions.
FONR Next Earnings Date
No upcoming earnings date has been announced for FONAR CORP (FONR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FONR? — Investment Thesis Summary
FONAR CORP presents a balanced picture with arguments on both sides. Low volatility (stability score 83/100) reduces downside risk.
In summary, FONAR CORP (FONR) earns a Hold rating with a composite score of 51.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FONR stock.
We'll email you when stocks you follow change their composite rating.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
2.4%
Sector: 10.6%
-78% VS SCTR
Gross Margin
Core pricing power
88.3%
Sector: 71.5%
+23% VS SCTR
Operating Margin
Operating efficiency
11.8%
Sector: -66.1%
-118% VS SCTR
Net Margin
Bottom-line conversion
10.1%
Sector: -58.7%
-117% VS SCTR
Return on Equity
Equity capital efficiency
6.5%
Sector: -43.5%
-115% VS SCTR
Return on Assets
Asset base utilization
4.9%
Sector: -33.1%
-115% VS SCTR
Debt/Equity
Financial leverage load
33.0%
Sector: 32.0%
IN LINE
Dividend Yield
Direct cash return
0.0%
Sector: 0.0%
-NaN% VS SCTR
-74%
Price / Sales
1.1x
-32%
FONAR CORP exhibits a 27% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
4.9%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
88.3%
Sector: 71.5%
Operating Margin
Core business profitability
11.8%
Sector: -66.1%
Net Margin
Bottom-line profitability
10.1%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.