FONR:NASDAQFonar Corporation Analysis
Data as of 2026-04-04 - not real-time
$18.59
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
FONAR’s stock trades at $18.59, just above its 20‑day ($18.48) and 50‑day ($18.55) simple moving averages, with a neutral trend and a modest bullish bias from a 60.3 RSI and a bullish MACD histogram. Technical support sits near $18.30 and resistance at $18.61, while volume has been declining, suggesting limited upside momentum in the near term.
Fundamentally, the company’s PE of 16.2 is well below the diagnostics industry average of 25.7, and its price‑to‑book of 0.69 indicates a cheap balance‑sheet valuation, yet the discounted cash‑flow model pins a fair value around $7.9, implying the market may be significantly over‑pricing the stock. The firm generates modest revenue growth (2.4%), solid gross margins (40.8%), but low ROE (6%) and modest free cash flow, with a net cash position of roughly $14 M after debt. Low beta (~0.12) and a 30‑day volatility of 4.3% point to limited market risk, but decreasing liquidity and a small market cap raise concerns about tradeability.
Fundamentally, the company’s PE of 16.2 is well below the diagnostics industry average of 25.7, and its price‑to‑book of 0.69 indicates a cheap balance‑sheet valuation, yet the discounted cash‑flow model pins a fair value around $7.9, implying the market may be significantly over‑pricing the stock. The firm generates modest revenue growth (2.4%), solid gross margins (40.8%), but low ROE (6%) and modest free cash flow, with a net cash position of roughly $14 M after debt. Low beta (~0.12) and a 30‑day volatility of 4.3% point to limited market risk, but decreasing liquidity and a small market cap raise concerns about tradeability.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price hovering just above short‑term SMAs with resistance at $18.61
- Decreasing volume indicating weakening buying pressure
- Technical bullish signals (RSI 60, MACD bullish) but limited upside
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- Valuation gap: market price far above DCF fair value (~$7.9)
- Modest revenue growth and low ROE limiting earnings upside
- Industry‑relative cheapness (PE below sector average) offering some floor
Long Term
> 3 yearsNeutral
Model confidence: 4/10
Key Factors
- Strong balance sheet with net cash and low debt‑to‑equity
- Low beta and moderate volatility suggest defensive profile
- Persistent overvaluation relative to intrinsic estimates may pressure returns
Key Metrics & Analysis
Financial Health
Revenue Growth2.40%
Profit Margin7.12%
P/E Ratio16.2
ROE6.01%
ROA3.16%
Debt/Equity24.44
P/B Ratio0.7
Op. Cash Flow$9.2M
Free Cash Flow$2.4M
Industry P/E25.7
Technical Analysis
TrendNeutral
RSI60.3
Support$18.30
Resistance$18.61
MA 20$18.48
MA 50$18.55
MA 200$16.30
MACDBullish
VolumeDecreasing
Fear & Greed Index78.8
Valuation
Fair Value$7.92
GradeOvervalued
TypeValue
Risk Assessment
Beta0.12
Volatility4.26%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.