CLPT Stock Overview
ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States.
ClearPoint Neuro Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$10.91|
|52 Week High||US$20.55|
|52 Week Low||US$7.00|
|1 Month Change||-9.08%|
|3 Month Change||-23.39%|
|1 Year Change||-36.75%|
|3 Year Change||166.10%|
|5 Year Change||251.94%|
|Change since IPO||-63.63%|
Recent News & Updates
ClearPoint Neuro: Continuous Great Execution
Summary Revenue growth rebounded strongly due to its acceleration in B&DD and capital equipment and software revenue. The company marks its first milestone with its FDA approval with PTC-AADC, with certainly more to come. Operating losses continue to improve from previous quarters, suggesting that the management is focusing on profitability. Valuation is still priced at a premium. Investment Thesis In 2021, I was particularly intrigued with ClearPoint Neuro, Inc. (CLPT) because of its strong moat - its navigation system that allows neurosurgeons to perform minimally invasive procedures under real-time MRI guidance. Treatments for neurological diseases require injecting drugs directly into the brain with precise accuracy, and ClearPoint Navigation System enables just that. The management’s growth-mindedness to penetrate the operating room (“OR”) market - where 90% of the surgeries take place - has also resulted in an excellent cadence of products in the pipelines. And more excitingly, they are partnered up with over 40 biopharma partners, of which ClearPoint products are involved in multiple FDA clinical trials. After looking at its most recent 2Q22 result, I strongly believe that the management's execution continues to be great. And while I believe valuation continues to be priced at a premium, this can be a decent investment for long-term investors. Breakdown of 2Q22 Results Functional Neuro Navigation ((FNN)) (Source: Image Created From ClearPoint Quarterly Report) ClearPoint’s FNN grew only 17% Y/Y as hospitals continue to prioritize Covid-19 patients, and this has impacted its case volume. Recall that they have also stopped reporting its case volume, so there is no visibility into whether it is improving. However, CEO Joe Burnett has previously stated in 1Q22 that the cancellation and postponement rate has remained at historic highs, and I do foresee this will likely continue throughout FY22. Biologics & Drug Delivery (B&DD) (Source: Image Created From ClearPoint Quarterly Report) (Source: Image Created From ClearPoint Quarterly Report) ClearPoint B&DD revenue grew 73% Y/Y, and this was driven mainly by its disposable revenue which grew 172% Y/Y. Also, I noticed how B&DD revenue has also been increasingly making up a bigger slice of its total revenue, which I believe will be the largest business over time due to the sheer number of partners they have. After multiple quarters of delay, the company finally marked its first milestone as PTC Therapeutics ((PTCT)) announced its first drug approval with PTC-AADC. This brings in sticky and highly recurring revenue for the company in the future, and more importantly, in my view, it brings credibility and helps to accelerate word-of-mouth as a go-to partner for treating neurological diseases. (Source: Image Created From ClearPoint Quarterly Report) The PTC-AADC approval, however, is only the tip of the iceberg considering that they have over 45 B&DD partners and are growing. Some of these drugs are likely to commercialize in the future (as not all do), bringing in more recurring disposable revenue. Although, ClearPoint still earns revenue from earlier clinical stages, and not only from the commercialization stage. These are huge optionalities in the making, which most investors are particularly bullish about. They have been growing their number of partners really quickly as well since 3Q20. I also particularly like this statement from CEO Joe Burnett during his 2Q22 earnings call as it tells me about the ambition he has for the company: “Our goal for our SmartFlow family of cannulas products is to be referenced in the labeling for therapies across multiple partners and indications so that ClearPoint is the go-to delivery mechanism for pharma delivery to the brain and spine.” Capital Equipment and Software (Source: Image Created From ClearPoint Quarterly Report) (Source: ClearPoint 2Q22 Investor Presentation) ClearPoint’s capital equipment and software revenue accelerated by 282% Y/Y, and this was primarily driven by the 735% Y/Y increase in hardware sales. They did 4 installments in 2Q22, bringing it to a total of 8 as of 1H22, and they expect another 4 to be done by 2H22. Covid-19 was a huge bottleneck as the staff was unable to head onsite to install the navigation system for its partners. The 2 consecutive quarters of rebound is a great relief as it suggests that restrictions have eased and the onboarding process has sped up. This also serves as an indication of its future growth for FNN and B&DD revenue as hospitals typically need to install the navigation system before they could start adopting ClearPoint products and services. ClearPoint continues to grow its user base this quarter as they brought in the University Hospital of Wales in the U.K, Universitätsklinikum düsseldorf in Germany, Lucile Packard University Hospital, Froedtert Hospital, and Mayo Clinic in Arizona. This implies that they are gaining traction in both U.S. and Europe. Profitability (Source: Image Created From ClearPoint Quarterly Report) (Source: Image Created From ClearPoint Quarterly Report) (Source: Image Created From ClearPoint Quarterly Report) As ClearPoint is still early in its business lifecycle, its operating expenses are relatively high as a proportion of its total revenue as investments are made in product developments, hiring headcounts to better serve its partners and marketing initiatives. Not to mention, Covid-19 has also slowed down its revenue considerably. However, if we take a close look at its total operating expenses growth, it has been slowing down for the past 3 quarters, driven by the slower growth in R&D and G&A expenses. (Source: Image Created From ClearPoint Quarterly Report) (Source: Image Created From ClearPoint Quarterly Report) As a result of its slower growth in operating expenses, operating losses have also slowed down during the quarter. This may signal that the management is more focused on profitability moving ahead, which I personally think is necessary for this environment.
ClearPoint Neuro: Picks & Shovels Galore
Shares have lost 20% of their value since the initial public offering in February of last year. The company is well-positioned as a "picks and shovels" play to pharmaceutical partners addressing neurological indications. Much of the management team previously served at Philips and has highly relevant experience that inspires confidence in execution. Approval for PTC Therapeutics' Upstaza is just the tip of the iceberg and the company projects $4 billion or more in peak sales potential across applications. CLPT is a Buy. Key risks include dilution within the next year, disappointing data for partners, regulatory setbacks and key patent expirations in coming years. Shares of therapy-enabling platform company ClearPoint Neuro (CLPT) have lost 20% of their value since the initial public offering was priced at $23.50 in February of 2021. So far in 2022, shares have posted a respectable +25% gain in what has been a difficult year. The company returned to my radar in July after the regulatory approval for Core Biotech holding PTC Therapeutics' (PTCT) gene therapy Upstaza for AADC Deficiency. This is because Upstaza is administered directly to the brain and this can only be accomplished via use of ClearPoint's SmartFlow Neuro Cannula for minimally invasive infusion of gene therapies like Upstaza. Looking at the company's "pipeline" and assorted applications for its technology, I came to realize that delivery of biologics and drugs was just the tip of the iceberg with $4 billion or more of peak sales potential achievable across all products. Contrast this to current enterprise value below $300M and it's clear why I chose to revisit this name and present it to my readers. Chart FinViz Figure 1: CLPT weekly chart (Source: Finviz) When looking at charts, clarity often comes from taking a look at distinct time frames in order to determine important technical levels and get a feel for what's going on. In the weekly chart above, we can see shares hit a parabolic high of $30 at the beginning of 2021. From there they fell to lows below $10 and are currently consolidating in the low teens. My initial take is that readers who appreciate long term prospects here would do well to accumulate a position on pullback to 20-day and 50-day moving averages ($12 level or so). Overview Founded in 1998 and based in Irvine, California, ClearPoint Neuro is a commercial-stage medical device company whose platforms help physicians perform minimally invasive surgical procedures in the brain. In 2021, they expanded efforts beyond MRI-guided interventions to develop novel neurosurgical device products for the operating room setting as well as offer consulting services for big pharmaceutical companies. The company has experienced significant validation for its technologies as its products have been used in over 5,000 clinical trial procedures in the US, Canada, EU and UK at approximately 60 neurosurgery centers. ClearPoint's operations consist of two parts, the first being providing medical devices for neurosurgery applications and the second being partner of choice for pharmaceutical companies in the biologics and drug delivery space. Currently they have 40 customers evaluating or using the SmartFlow cannula or other products to inject gene and cell therapies directly in the brain. The company estimates $7 billion market potential across product categories and 15 distinct disease states. Corporate Slides Figure 2: Neuro market opportunity and peak revenue by indication (Source: corporate presentation) The company believes there are over 140,000 potential neurosurgical procedures per year in the US in which the ClearPoint system could be used as a navigational platform for functional stereotactic neurosurgery including current FDA approved indications of Parkinson's disease, drug resistant epilepsy, refractory essential tremor and brain tumors. Potential procedures include electrode placement, considering that 120,000 Parkinson's and essential tremor patients alone are potential candidates for deep brain stimulation utilizing ClearPoint's system each year. Aside from that, patients suffering from drug resistant epilepsy, refractory essential tremor, dystonia, severe obsessive compulsion disorder, severe major depressive disorder, paralysis, Huntington’s disease, auditory nerve implantation, Alzheimer’s disease and stroke rehabilitation may create additional potential procedure opportunities in the future. Other applications of note include brain tumor biopsy (15,000 procedures per year) and gene therapy/drug delivery directly in the brain (for indications such as AADC Deficiency, Friedreich's Ataxia, and Angelman Syndrome, to name a few). As for differentiation versus prior standard of care, which relies on indirect guidance of pre-operative imaging, the ClearPoint system enables the physician to be guided by real-time, high-resolution MRI. Additional revenue-generating opportunities are available via sale of software and hardware components. As for key collaboration partners of note, in 2020 Philips licensed to Clearpoint use of the technology underlying its Philips Brain Model in their ClearPoint Maestro Brain Model (ClearPoint owes royalties on sales and in 2022 collaboration was expanded to include use with Computed Tomography or CT imaging). In 2020, the company entered into multi-product development agreement with Blackrock including for the Microelectric Recording Platform and implanting Blackrock's brain computer interfaces into patients with a wide range of neurological disorders. Also in 2020, the company entered into a collaboration agreement with CLS to sell its portfolio of products when used with MRI guidance including the Tranberg line for high precision ablation. UCSF agreement was inked all the way back in 2013 and provides design features which are incorporated into ClearPoint's SmartFlow cannula (owes royalties on sales). Other Information For the second quarter of 2022, the company reported cash and equivalents of $45M as compared to increased operating expenses of $7.5M. Total revenue rose 52% to $5.2M, while functional neurosurgery navigation revenue grew 17% to $2.2M and biologics/drug deliver revenue increased 73% to $2.4M. Capital equipment and software revenue rose a whopping 282% to $0.6M. On the con side, gross margin fell slightly to 63% and on the whole revenues are quite small relative to current valuation. Cumulative deficit stands at $134M since inception, which I consider a green flag of sorts because it certainly is not excessive. Corporate Slides Figure 3: Historical & current case volume and revenue growth (Source: corporate presentation) As for the conference call, management notes that they continue to make progress across their four-pillar growth strategy consisting of biologics and drug delivery, functional neurosurgery navigation, therapy and access products. They continue to expect full year 2022 revenue of $21M to $22M representing 30% to 35% annualized growth. The goal for their SmartFlow family of cannula products is to be referenced in labeling for therapies across multiple partners and indications as THE go-to delivery mechanism for pharma delivery to the brain and spine. Keep in mind each partner is commonly working on more than one indication and that these are often high-risk programs (not all will make it to regulatory approval and launch). As for institutional investors of note, it's worth noting that Bigger Capital Fund owns a 5.2% stake (Founder's Twitter is an insightful follow). As for insiders, President and CEO Joseph Burnett owns over 260,000 shares. Also, Core Biotech holding PTC Therapeutics owns an 8% stake in ClearPoint. As for the management team as a whole, CEO Joseph Burnett previously served as President of Neuro Diagnostics at Philips and prior to that as SVP Business Leader of Image Guided Therapy Devices after Vocano Corporation was acquired. CFO Danilo D'Alessandro served prior as Global Head of Finance for the Image Guided Therapy Devices Division at Philips (representing cumulative inorganic investments of $4 billion and over 3,000 employees). As for executive compensation, cash component is definitely reasonable for a company this size and I was pleasantly surprised to see stock and option awards at levels as low as these (perhaps a sign of good stewardship). Proxy Filing Figure 4: Executive compensation table (Source: proxy filing) The important thing is to avoid companies where the management team is clearly in it for self-enrichment instead of creating value for shareholders, and looking at compensation is one of several indicators in that regard.
|CLPT||US Medical Equipment||US Market|
Return vs Industry: CLPT underperformed the US Medical Equipment industry which returned -25.9% over the past year.
Return vs Market: CLPT underperformed the US Market which returned -18.8% over the past year.
|CLPT Average Weekly Movement||9.8%|
|Medical Equipment Industry Average Movement||8.6%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: CLPT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: CLPT's weekly volatility (10%) has been stable over the past year.
About the Company
ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. The company develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under direct, and intra-procedural magnetic resonance imaging (MRI) guidance. It offers ClearPoint system for the insertion of deep brain stimulation electrodes and biopsy needles, and the infusion of pharmaceuticals and laser catheters into the brain; and ClearPoint Neuro Navigation System, an MRI suite.
ClearPoint Neuro Fundamentals Summary
|CLPT fundamental statistics|
Is CLPT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CLPT income statement (TTM)|
|Cost of Revenue||US$6.18m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.67|
|Net Profit Margin||-85.88%|
How did CLPT perform over the long term?See historical performance and comparison
Is CLPT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CLPT?
Other financial metrics that can be useful for relative valuation.
|What is CLPT's n/a Ratio?|
Price to Sales Ratio vs Peers
How does CLPT's PS Ratio compare to its peers?
|CLPT PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
SMLR Semler Scientific
APEN Apollo Endosurgery
SPNE SeaSpine Holdings
SRTS Sensus Healthcare
CLPT ClearPoint Neuro
Price-To-Sales vs Peers: CLPT is expensive based on its Price-To-Sales Ratio (14x) compared to the peer average (3.6x).
Price to Earnings Ratio vs Industry
How does CLPT's PE Ratio compare vs other companies in the US Medical Equipment Industry?
Price-To-Sales vs Industry: CLPT is expensive based on its Price-To-Sales Ratio (14x) compared to the US Medical Equipment industry average (3.9x)
Price to Sales Ratio vs Fair Ratio
What is CLPT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||14x|
|Fair PS Ratio||6.1x|
Price-To-Sales vs Fair Ratio: CLPT is expensive based on its Price-To-Sales Ratio (14x) compared to the estimated Fair Price-To-Sales Ratio (6.1x).
Share Price vs Fair Value
What is the Fair Price of CLPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: Insufficient data to calculate CLPT's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate CLPT's fair value for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.
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How is ClearPoint Neuro forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CLPT is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CLPT is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CLPT is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CLPT's revenue (25.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CLPT's revenue (25.7% 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 CLPT's Return on Equity is forecast to be high in 3 years time
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How has ClearPoint Neuro performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CLPT is currently unprofitable.
Growing Profit Margin: CLPT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CLPT is unprofitable, and losses have increased over the past 5 years at a rate of 17.8% per year.
Accelerating Growth: Unable to compare CLPT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CLPT is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-0.2%).
Return on Equity
High ROE: CLPT has a negative Return on Equity (-38.28%), as it is currently unprofitable.
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How is ClearPoint Neuro's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: CLPT's short term assets ($56.6M) exceed its short term liabilities ($5.5M).
Long Term Liabilities: CLPT's short term assets ($56.6M) exceed its long term liabilities ($11.9M).
Debt to Equity History and Analysis
Debt Level: CLPT has more cash than its total debt.
Reducing Debt: CLPT's debt to equity ratio has reduced from 55.1% to 23% over the past 5 years.
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: CLPT has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: CLPT has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 17.5% each year
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What is ClearPoint Neuro current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|ClearPoint Neuro Dividend Yield vs Market|
|Company (ClearPoint Neuro)||n/a|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Medical Equipment)||1.8%|
|Analyst forecast in 3 Years (ClearPoint Neuro)||n/a|
Notable Dividend: Unable to evaluate CLPT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CLPT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CLPT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CLPT's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CLPT has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Burnett (45 yo)
Mr. Joseph Michael Burnett, also known as Joe, has been Chief Executive Officer, President and Director of ClearPoint Neuro, Inc. since November 7, 2017. Mr. Burnett has spent his entire career in medical...
CEO Compensation Analysis
|Joe Burnett's Compensation vs ClearPoint Neuro Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$1m||US$445k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$784k||US$435k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$864k||US$366k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$515k||US$360k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$930k||US$55k|
Compensation vs Market: Joe's total compensation ($USD1.47M) is about average for companies of similar size in the US market ($USD1.76M).
Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.
Experienced Management: CLPT's management team is considered experienced (2.3 years average tenure).
Experienced Board: CLPT's board of directors are considered experienced (4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.5%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
ClearPoint Neuro, Inc.'s employee growth, exchange listings and data sources
- Name: ClearPoint Neuro, Inc.
- Ticker: CLPT
- Exchange: NasdaqCM
- Founded: 1998
- Industry: Health Care Equipment
- Sector: Healthcare
- Implied Market Cap: US$267.167m
- Shares outstanding: 24.49m
- Website: https://www.clearpointneuro.com
Number of Employees
- ClearPoint Neuro, Inc.
- 120 S. Sierra Avenue
- Suite 100
- Solana Beach
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CLPT||NasdaqCM (Nasdaq Capital Market)||Yes||Common Stock||US||USD||May 2012|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/06 00:00|
|End of Day Share Price||2022/10/06 00:00|
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.