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FONAR Corporation has seen its stock increase by 5% over the past three months, outperforming the medical products industry, which rose 2.5%. In this period, its stock performance has lagged behind the S&P 500’s gain of 8.6%. The company, based in Melville, NY, designs and sells MRI scanners and recently announced improved third-quarter fiscal 2025 results but reported a decline in product sales.
Management cites the success of combining high-field MRIs with Stand-Up MRIs at select facilities as a key factor in attracting more physician referrals. An installation of a high-field MRI was completed in March in Melville, with another set to begin operations in Nassau County in the fourth quarter of fiscal 2025. Despite challenges including rising operating expenses and weak equipment sales, FONAR’s stock remains resilient in the medical imaging market.
FONAR’s trailing 12-month EV/Sales stands at 0.4X, significantly lower than the industry average of 6.4X. The company maintains a conservative financial structure with minimal debt and strong cash flow from its Health Management Company of America subsidiary, providing it with stability amid market fluctuations.
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