NasdaqGM:STIM

Stock Analysis Report

Executive Summary

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders in the United States, Japan, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Neuronetics has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.0%

STIM

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

-70.0%

STIM

9.9%

US Medical Equipment

0.6%

US Market

STIM underperformed the Medical Equipment industry which returned 9.5% over the past year.

STIM underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

STIMIndustryMarket
7 Day-9.0%1.1%-0.6%
30 Day5.2%0.6%2.2%
90 Day-19.1%2.9%1.1%
1 Year-70.0%-70.0%10.8%9.9%2.9%0.6%
3 Yearn/a70.1%64.9%44.6%35.2%
5 Yearn/a138.9%111.8%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

2 months ago | Simply Wall St

Some Neuronetics (NASDAQ:STIM) Shareholders Have Copped A Big 51% Share Price Drop

Valuation

Is Neuronetics undervalued based on future cash flows and its price relative to the stock market?

3.17x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Neuronetics to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Neuronetics to establish if it is available at substantial discount.


Price Based on Earnings

Neuronetics is loss making, we can't compare its value to the US Medical Equipment industry average.

Neuronetics is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Neuronetics, we can't assess if its growth is good value.


Price Based on Value of Assets

Neuronetics is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Neuronetics expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Neuronetics's revenue is expected to grow by 18% yearly, however this is not considered high growth (20% yearly).

Neuronetics is not considered high growth as it is expected to be loss making for the next 1-3 years.

Neuronetics's revenue growth is expected to exceed the United States of America market average.

Unable to compare Neuronetics's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Neuronetics's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Neuronetics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Neuronetics performed over the past 5 years?

-18.7%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Neuronetics does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare Neuronetics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Neuronetics's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Neuronetics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Neuronetics has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Neuronetics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Neuronetics's financial position?


Financial Position Analysis

Neuronetics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Neuronetics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Neuronetics's level of debt (51.4%) compared to net worth is high (greater than 40%).

Unable to establish if Neuronetics's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.3x debt.


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.

Neuronetics has sufficient cash runway for more than 3 years based on current free cash flow.

Neuronetics has sufficient cash runway for 2.5 years if free cash flow continues to grow at historical rates of 39.7% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Neuronetics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Neuronetics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Neuronetics has not reported any payouts.

Unable to verify if Neuronetics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Neuronetics has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Chris Thatcher (54yo)

4.8yrs

Tenure

US$1,179,548

Compensation

Mr. Christopher A. Thatcher, also known as Chris, has been the Chief Executive Officer and President of Neuronetics, Inc since December 2014. Mr. Thatcher served as the President of Corporate Initiatives a ...


CEO Compensation Analysis

Chris's remuneration is about average for companies of similar size in United States of America.

Chris's compensation has increased whilst company is loss making.


Management Age and Tenure

2.2yrs

Average Tenure

51.5yo

Average Age

The tenure for the Neuronetics management team is about average.


Board Age and Tenure

6.2yrs

Average Tenure

57.5yo

Average Age

The tenure for the Neuronetics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$53,54323 May 19
Daniel Guthrie
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer & VP
Shares3,685
Max PriceUS$14.53
SellUS$119,67714 May 19
Peter Donato
EntityIndividual
Role
Chief Accounting Officer
Executive Officer
Shares8,032
Max PriceUS$14.90
SellUS$8,67014 May 19
Peter Donato
EntityIndividual
Role
Chief Accounting Officer
Executive Officer
Shares563
Max PriceUS$15.40

Ownership Breakdown


Management Team

  • Peter Donato (49yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: US$585.23k
  • Chris Thatcher (54yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$1.18m
  • Steve Furlong

    CFO & Company Secretary

    • Tenure: 0.2yrs
  • Greg Harper (58yo)

    Vice President of Research & Development

    • Tenure: 3yrs
    • Compensation: US$460.69k
  • Daniel Guthrie (42yo)

    Chief Commercial Officer & VP

    • Tenure: 1.3yrs
    • Compensation: US$1.94m

Board Members

  • Glenn Muir (60yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$55.63k
  • Brian Farley (62yo)

    Chairman

    • Tenure: 8.7yrs
    • Compensation: US$118.28k
  • Steve Campe (54yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$53.13k
  • Wilf Jaeger (64yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$53.13k
  • Cheryl Blanchard (55yo)

    Independent Director

    • Tenure: 0.6yrs
  • Chris Thatcher (54yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$1.18m

Company Information

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


Key Information

  • Name: Neuronetics, Inc.
  • Ticker: STIM
  • Exchange: NasdaqGM
  • Founded: 2003
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$190.021m
  • Shares outstanding: 18.48m
  • Website: https://www.neurostar.com

Number of Employees


Location

  • Neuronetics, Inc.
  • 3222 Phoenixville Pike
  • Malvern
  • Pennsylvania
  • 19355
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STIMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2018
NRCDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

Biography

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders in the United States, Japan, and internationally. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:22
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.