DB:NLZD

Stock Analysis Report

Executive Summary

NeuroMetrix, Inc., a healthcare company, develops and markets products for the detection, diagnosis, and monitoring of peripheral nerve and spinal cord disorders.

Rewards

Trading at 98.4% below its fair value

Earnings are forecast to grow 60.71% per year

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap (€4M)

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has NeuroMetrix's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NLZD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.9%

NLZD

2.4%

DE Medical Equipment

0.5%

DE Market


1 Year Return

-67.6%

NLZD

35.9%

DE Medical Equipment

15.5%

DE Market

Return vs Industry: NLZD underperformed the German Medical Equipment industry which returned 35.7% over the past year.

Return vs Market: NLZD underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

NLZDIndustryMarket
7 Day9.9%2.4%0.5%
30 Day-15.2%5.1%1.4%
90 Day42.4%18.1%5.3%
1 Year-67.6%-67.6%38.1%35.9%19.2%15.5%
3 Year-93.2%-93.2%146.2%139.8%15.7%5.5%
5 Year-99.3%-99.3%294.8%275.0%27.3%10.1%

Price Volatility Vs. Market

How volatile is NeuroMetrix's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NeuroMetrix undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NLZD (€3.24) is trading below our estimate of fair value (€204.74)

Significantly Below Fair Value: NLZD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NLZD is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: NLZD is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NLZD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NLZD is good value based on its PB Ratio (1x) compared to the DE Medical Equipment industry average (5.8x).


Next Steps

Future Growth

How is NeuroMetrix forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

60.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLZD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: NLZD is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NLZD's is expected to become profitable in the next 3 years.

Revenue vs Market: NLZD's revenue (20.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: NLZD's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NLZD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NeuroMetrix performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NLZD is currently unprofitable.

Growing Profit Margin: NLZD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NLZD is unprofitable, but has reduced losses over the past 5 years at a rate of 20% per year.

Accelerating Growth: Unable to compare NLZD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NLZD is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (23.9%).


Return on Equity

High ROE: NLZD has a negative Return on Equity (-154.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NeuroMetrix's financial position?


Financial Position Analysis

Short Term Liabilities: NLZD's short term assets ($6.6M) exceed its short term liabilities ($3.9M).

Long Term Liabilities: NLZD's short term assets ($6.6M) exceed its long term liabilities ($1.0M).


Debt to Equity History and Analysis

Debt Level: NLZD is debt free.

Reducing Debt: NLZD has not had any debt for past 5 years.


Balance Sheet

Inventory Level: NLZD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NLZD's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NLZD has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NLZD has less than a year of cash runway if free cash flow continues to grow at historical rates of 75.3% each year.


Next Steps

Dividend

What is NeuroMetrix's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NLZD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NLZD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NLZD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NLZD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NLZD's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of NeuroMetrix's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

Shai Gozani (54yo)

23yrs

Tenure

US$478,211

Compensation

Dr. Shai N. Gozani, M.D., Ph.D., founded Neurometrix Inc. in 1996 and has been its President since 2002 and Chief Executive Officer since 1997 and its Secretary July 2008. He has been the Chairman of the B ...


CEO Compensation Analysis

Compensation vs Market: Shai's total compensation ($USD478.21K) is about average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: Shai's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.9yrs

Average Tenure

58yo

Average Age

Experienced Management: NLZD's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

59yo

Average Age

Experienced Board: NLZD's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.5%.


Management Team

  • Tom Higgins (67yo)

    Senior VP

    • Tenure: 10.3yrs
    • Compensation: US$356.61k
  • Shai Gozani (54yo)

    Founder

    • Tenure: 23yrs
    • Compensation: US$478.21k
  • Michael MacDonald

    Senior VP of Commercial Operations & GM of Diagnostics

    • Xuan Kong

      Chief Data Scientist

      • Tenure: 2.6yrs
    • Frank McGillin (58yo)

      Senior VP & Chief Commercial Officer

      • Tenure: 5.4yrs
      • Compensation: US$372.86k

    Board Members

    • Tim Surgenor (59yo)

      Independent Director

      • Tenure: 10.8yrs
      • Compensation: US$50.57k
    • Nancy Katz (59yo)

      Independent Director

      • Tenure: 9.1yrs
      • Compensation: US$45.57k
    • David Goodman (64yo)

      Independent Director

      • Tenure: 15.6yrs
      • Compensation: US$47.57k
    • Aaron Vinik

      Member of Scientific Advisory Board

      • Tenure: 8.8yrs
    • Shai Gozani (54yo)

      Founder

      • Tenure: 23yrs
      • Compensation: US$478.21k
    • Andrew Boulton

      Member of the Scientific Advisory Board

      • Tenure: 8.8yrs
    • Neil Brooks

      Member of the Scientific Advisory Board

      • Tenure: 8.8yrs
    • Solomon Tesfaye

      Member of the Scientific Advisory Board

      • Tenure: 8.8yrs
    • Dan Ziegler

      Member of the Scientific Advisory Board

      • Tenure: 8.8yrs
    • Bruce Perkins

      Member of the Scientific Advisory Board

      • Tenure: 8.8yrs

    Company Information

    NeuroMetrix, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: NeuroMetrix, Inc.
    • Ticker: NLZD
    • Exchange: DB
    • Founded: 1996
    • Industry: Health Care Equipment
    • Sector: Healthcare
    • Market Cap: US$4.284m
    • Listing Market Cap: US$3.864m
    • Shares outstanding: 978.18k
    • Website: https://www.neurometrix.com

    Number of Employees


    Location

    • NeuroMetrix, Inc.
    • 1000 Winter Street
    • Waltham
    • Massachusetts
    • 2451
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    A2DYWUDB (Deutsche Boerse AG)COM USD0.0001(POST REV SPLT)DEUSDNo data
    NURONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2004
    NLZDDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004

    Biography

    NeuroMetrix, Inc., a healthcare company, develops and markets products for the detection, diagnosis, and monitoring of peripheral nerve and spinal cord disorders. The company develops wearable neuro-stimulation therapeutic devices and point-of-care neuropathy diagnostic tests to address chronic health conditions, including chronic pain, sleep disorders, and diabetes. Its marketed products include Quell, a wearable device for relief of chronic intractable pain, such as nerve pain due to diabetes and lower back problems; DPNCheck, a test used to evaluate systemic neuropathies, such as diabetic peripheral neuropathy; ADVANCE system, a platform for the performance of traditional nerve conduction studies; and SENSUS, a pain therapy device based on transcutaneous electrical nerve stimulation for relief of chronic intractable pain. The company offers its products to consumers, retail merchandisers, direct response TV promoters, health care professionals, managed care organizations, endocrinologists, podiatrists, physicians, neurologists, and physical medicine and rehabilitation centers, as well as primary care, internal medicine, orthopedic, hand, and neurosurgeons. It operates in the United States, Europe, Japan, China, the Middle East, and Mexico. The company has a strategic collaboration with GlaxoSmithKline. NeuroMetrix, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 21:49
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.