Fonar Corporation — Cyborg Score 5/10

Mixed
Medical Devices - Diagnostic Imaging (MRI Equipment Manufacturing and Healthcare Services)

Strategic Profile

Fonar is deeply rooted in MRI technology development and has been instrumental in establishing the industry through historical breakthroughs. The company holds a portfolio of 209 patents related to its MRI technology, including its unique upright MRI scanning technology, with cross-licensing agreements on some patents but no licensing of its upright MRI technology, further strengthening competitive advantage.

Cyborg Score Rationale

With TTM revenue of $24.95M, net income of $2.21M, and net profit margin of 8.84%, Fonar demonstrates modest profitability. However, equipment sales have declined significantly from over $9M in 2010 to $0.6M in 2018, with the management and services business compensating for this decline.

Top Insights

  • Sticky recurring revenue from patient fees, management, and maintenance services through subsidiary Health Management Corporation of America, as clients are reluctant to switch providers due to high associated costs
  • Strong current ratio of 11.24, indicating robust ability to pay short-term obligations
  • Direct competition with heavy hitters like GE, Siemens, and Toshiba who possess greater resources for R&D and marketing, creating risk for this small-cap company
  • Healthcare legislation impacts reimbursement rates to MRI centers, with ongoing regulatory pressures affecting fee structures

Named Competitors

  • MRI Systems — Global medical imaging and diagnostics leader
  • MRI Scanners — Major multinational medical technology manufacturer
  • MRI Equipment — Japanese medical imaging equipment provider

Recent Developments

  • (December 2025) Stock price at $18.60 with market cap approximately $92.3M
  • (May 2026) Next earnings date scheduled for May 15, 2026
  • (Ongoing) Investigation alerts from law firms regarding proposed stockholder buyout

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