RadNet, a company operating diagnostic imaging centers in the United States, has seen a 25.7% decrease in its stock price over the past six months. Investors may be considering whether to buy, hold, or sell the stock in their portfolio.

Despite RadNet's stock becoming more affordable, analysts are cautious and suggest avoiding investing in RadNet at the moment. The company's revenue of $1.83 billion over the last year is relatively small in an industry where scale plays a crucial role, making it challenging to establish trust with customers due to the highly regulated and resource-intensive nature of healthcare.

Furthermore, RadNet's free cash flow margin has decreased significantly over the past five years, indicating a potential shift towards a more capital-intensive business model. Additionally, the company's historical return on invested capital (ROIC) has been mediocre at 6.8%, compared to top-performing healthcare companies that achieve ROIC rates exceeding 20%. Investors are advised to exercise caution when considering RadNet as an investment option.