This company, whose founder invented the MRI, just celebrated its 50-year anniversary. FONR is a small-cap company trading at a P/E of 9. Shares appear to be undervalued at this level, but with a market cap of just $134 million, be aware the shares are somewhat volatile.
FONAR Corporation (FONR)
From SmallCap Informer
FONAR Corporation (FONR) reported its fiscal 2019 results for the year ending June 30, 2019. Total revenues increased by 7.0% to $87.2 million for the fiscal year ended June 30, 2019, versus previous fiscal year. EPS for the year decline 28.4% to $2.22, but this was in part due to an income tax provision of $2.0 million for the fiscal year ended June 30, 2019 vs. an income tax benefit of $5.7 million recorded in the previous year. Pre-tax profit increased 13.8% for the year.
FONAR’s primary source of income and growth is attributable to its wholly-owned diagnostic imaging management subsidiary, Health Management Company of America (HMCA). At June 30, 2019, HMCA manages 26 diagnostic imaging centers, 19 in New York and seven in Florida, collectively equipped with 35 MRI scanners. FONAR’s imaging centers completed 184,000 MRI scans in fiscal 2019, as compared to 176,000 in fiscal 2018.
FONAR is a buy up to $22.
Doug Gerlach, Smallcapinformer.com, 1-877-33-ICLUB, October 2019