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Neurometrix (NURO)
NASDAQ:NURO
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Neurometrix
(NASDAQ:NURO)
Rating:45Neutral
Price Target:―
Neurometrix (NURO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.43M
Dividend YieldN/A
Average Volume (3M)3.78K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-48.61%
EPS Growth32.18%
CountryUS
Employees13
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)-4.03
Shares Outstanding978,000
10 Day Avg. Volume6,065
30 Day Avg. Volume3,780
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)0.56
Price to Sales (P/S)0.00
P/FCF Ratio-1.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Neurometrix Business Overview & Revenue Model
Company DescriptionNeuroMetrix, Inc. is a healthcare company focused on developing and marketing innovative medical devices and technology solutions for the treatment and management of chronic conditions, particularly within neurology. The company primarily operates in the sectors of medical devices and healthcare technology. Its core products include the Quell device, a wearable neurostimulation technology for chronic pain management, and DPNCheck, a diagnostic device for diabetic peripheral neuropathy.
How the Company Makes MoneyNeuroMetrix generates revenue primarily through the sale of its medical devices, such as the Quell and DPNCheck. These products are sold directly to consumers, healthcare professionals, and healthcare institutions. Additionally, the company may earn income from service contracts, recurring subscriptions, and through partnerships with healthcare providers or distributors who incorporate NeuroMetrix's technology into their treatment offerings. Revenue is influenced by product sales volume, pricing strategies, and market adoption of their innovative solutions. The company may also explore opportunities for revenue through licensing agreements or collaborations with other medical technology entities.
Neurometrix Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q2-2024)
| % Change Since: 4.57%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong growth in the Quell product line and effective cost management. However, these positives were offset by a significant revenue decline and ongoing challenges in the DPNCheck product line. The strategic review has yet to produce favorable outcomes, adding to the uncertainty.Q2-2024 Updates
Positive Updates
Quell Revenue Growth
Quell revenue in Q2 was $192,000, representing a year-on-year gain of 47%. This indicates strong growth potential for the product.
Reduction in Operating Expenses
Operating expenses in Q2 were $2.3 million, down 15% from the prior year, due to a reduction in force and other cost-saving measures.
Quell Fibromyalgia Expansion
The Quell fibromyalgia product showed promising uptake in the Veterans Administration health system, presenting a new growth opportunity.
Quell Starter Kits and Refills Growth
Sales of Quell starter kits grew by 165% year-over-year, and there was a 13% growth in 1-month refills of Quell electrodes.
Strong Gross Margin
The company maintained a gross margin rate of 64%, with individual product gross margins stable for DPNCheck at 80% and improving for Quell.
Negative Updates
Significant Revenue Decline
Q2 revenue was $769,000, a decrease from $1.656 million in Q2 2023, primarily due to a decline in DPNCheck sales.
Challenges in DPNCheck Product Line
The DPNCheck product line faced a revenue decline due to changes in Medicare Advantage risk adjustment compensation, resulting in reduced usage by providers.
Net Loss
The company reported a net loss of $1.488 million, a slight improvement from the previous year's net loss of $1.5 million.
Uncertain Strategic Outcomes
Despite exploring various opportunities, the strategic review process has not yet resulted in a favorable transaction to maximize shareholder value.
Company Guidance
During the NeuroMetrix Q2 2024 earnings call, Thomas Higgins, the CFO, highlighted several key financial metrics and business strategies. The company's revenue for the quarter was $769,000, down from $1.656 million in Q2 2023, primarily due to a decline in the DPNCheck product line, which was impacted by CMS rule changes. Despite this, Quell product revenue grew 47% year-over-year to $192,000. The company maintained a gross profit of $492,000, with a gross margin rate of 64%. Operating expenses were reduced by 15% to $2.3 million, following a Q1 reduction in force that lowered personnel costs. The net loss for the quarter was $1.488 million, marginally better than the $1.5 million loss in the prior year. NeuroMetrix ended the quarter with $16.4 million in liquid assets and a working capital of $16.9 million, aiming to decrease their $1.4 million quarterly cash usage further. The company is exploring potential new markets for DPNCheck and plans to expand its Quell business, including a possible De Novo submission for a new CIPN indication by the fourth quarter.Neurometrix Financial Statement Overview
Summary
Neurometrix is experiencing severe financial challenges with a significant decline in revenue and profitability. Despite a strong equity position indicating financial stability, the company faces ongoing operational inefficiencies and negative cash flow.Income Statement
The company has experienced declining revenue with a decrease from $8.25M in 2022 to $3.77M in TTM, representing a significant negative growth trajectory. Gross profit margin has decreased to 57.6% in the TTM from 69.1% in 2022, indicating declining efficiency in revenue generation. The company is also facing substantial net losses, with a negative net profit margin of 203.7% and a negative EBIT margin of 230.4%, reflecting severe operational challenges.35
Negative
Balance Sheet
The company maintains a strong equity position with a high equity ratio of 92.9% in the TTM, indicating financial stability. However, it has a low debt-to-equity ratio of 0.01, suggesting limited leverage but potentially limiting growth opportunities. Return on equity is negative due to ongoing net losses, highlighting profitability issues.50
Neutral
Cash Flow
Operating cash flow remains negative at -$6.69M in the TTM, indicating cash burn from operations. Free cash flow has also deteriorated to -$6.73M in the TTM. The operating cash flow to net income ratio is slightly improved at 0.87 compared to previous periods, but both metrics indicate cash flow management challenges.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.77M | 5.90M | 8.26M | 8.25M | 7.38M | 9.27M | Gross Profit |
| 2.17M | 3.95M | 5.75M | 5.92M | 5.25M | 2.25M | EBIT |
| -8.68M | -7.15M | -4.74M | -2.28M | -2.09M | -11.53M | EBITDA |
| -8.26M | -7.10M | -4.69M | -2.21M | -2.00M | -8.79M | Net Income Common Stockholders |
| -7.68M | -6.53M | -4.37M | -2.21M | -2.00M | -3.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 25.79M | 18.00M | 21.20M | 22.57M | 5.23M | 3.13M | Total Assets |
| 36.07M | 21.42M | 24.67M | 24.89M | 7.99M | 6.89M | Total Debt |
| 56.82K | 240.88K | 355.91K | 306.71K | 461.41K | 916.67K | Net Debt |
| -20.74M | -1.49M | -3.90M | -22.27M | -4.76M | -2.21M | Total Liabilities |
| 4.57M | 1.33M | 1.31M | 1.67M | 2.75M | 4.36M | Stockholders Equity |
| 31.49M | 20.09M | 23.36M | 23.22M | 5.25M | 2.53M |
| Cash Flow | Free Cash Flow | ||||
| -6.73M | -6.27M | -5.31M | -2.21M | -2.07M | -3.67M | Operating Cash Flow |
| -6.69M | -6.08M | -5.29M | -2.07M | -2.07M | -3.62M | Investing Cash Flow |
| 3.05M | 1.16M | -16.89M | -131.71K | 0.00 | -48.08K | Financing Cash Flow |
| 3.10M | 2.33M | 3.86M | 19.55M | 4.17M | 15.11K |
Neurometrix Technical Analysis
Positive
4.58
Price Trends
4.43
Positive
4.29
Positive
4.09
Positive
Market Momentum
0.05
Negative
65.64
Neutral
72.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NURO, the sentiment is Positive. The current price of 4.58 is above the 20-day moving average (MA) of 4.45, above the 50-day MA of 4.43, and above the 200-day MA of 4.09, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 72.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NURO.
Neurometrix Risk Analysis
Neurometrix disclosed 39 risk factors in its most recent earnings report. Neurometrix reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Neurometrix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $10.80M | ― | -151.23% | ― | 3.30% | 31.84% | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
47 Neutral | $8.42M | ― | -210.97% | ― | 2.18% | 91.55% | |
45 Neutral | $9.43M | ― | -45.38% | ― | -48.61% | 32.18% | |
45 Neutral | $7.92M | ― | -72.70% | ― | 5.05% | 26.13% | |
42 Neutral | $6.75M | ― | -155.20% | ― | 9.90% | 94.56% | |
40 Underperform | $4.33M | ― | -662.74% | ― | ― | -10.29% |
* Healthcare Sector Average
Performance Comparison
NURO
Neurometrix
4.58
0.60
15.08%
SSKN
Strata Skin Sciences
2.59
-1.33
-33.93%
SINT
Sintx Technologies
2.69
-6.59
-71.01%
BMRA
Biomerica
3.18
-1.72
-35.10%
TNON
Tenon Medical, Inc.
1.11
-4.65
-80.73%
AMIX
Autonomix Medical, Inc.
1.74
-39.46
-95.78%
Neurometrix Corporate Events
Delistings and Listing ChangesExecutive/Board ChangesM&A Transactions
Neurometrix Completes Merger and Delists from Nasdaq
Neutral
May 2, 2025
Neurometrix has undergone a significant corporate restructuring through a merger agreement, resulting in the cancellation and conversion of its common and preferred stock into cash and contingent value rights (CVRs). The merger, effective as of May 2, 2025, also led to the delisting of its common stock from Nasdaq and changes in its board and executive leadership, with new directors and executives appointed from the merger partner’s team.
Spark’s Take on NURO Stock
According to Spark, TipRanks’ AI Analyst, NURO is a Neutral.
Neurometrix’s overall stock score is primarily impacted by its weak financial performance marked by declining revenues and persistent losses. While technical indicators show some positive momentum, the stock’s unattractive valuation, due to its negative earnings and lack of dividends, further drags down the score. Improvement in financial health and sustainable profitability are essential for a better outlook.
To see Spark’s full report on NURO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.