FONAR: Recent Selloff Seems Unjustified As EV/EBITDA Approaches 4x

Apr. 09, 2024 10:27 PM ETFONAR Corporation (FONR) StockFONR77 Comments
Gold Panda
7.29K Followers

Summary

  • The company focuses on managing diagnostic imaging centers, and it has slow and predicable revenue growth with decent margins.
  • In my view, the Q2 FY24 results were strong as revenues inched up by 4.7% to $25.4 million while attributable net income soared by 68.4% to $3.8 million.
  • The market capitalization of Fonar slumped by over 20% in the past month, and I think this creates a good buying opportunity here.
  • In my view, the EV/EBITDA ratio could return to above 6x by the end of 2024.

Market Analyze

woraput

Introduction

I recently created a screener on SA for microcap stocks trading below 6x EV/EBITDA and one name that caught my attention was FONAR Corp. (NASDAQ:FONR). The company has a strong balance sheet and I think its Q2 FY24

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This article was written by

7.29K Followers
Gold Panda has been working as an M&A analyst for over a decade. He's been investing since 2007. Preferring value to growth, he tends to take a relatively conservative approach in his investing. His focus is on small and micro-cap stocks, which he believes is the area that offers the greatest opportunity to exploit market mispricings.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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