Neuronetics (STIM) AI Stock Analysis

• Market Cap: $104.10M
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 78.62%
• EPS Growth: 32.39%
• Country: US
• Employees: 716
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.13
• Shares Outstanding: 68,485,920
• 10 Day Avg. Volume: 1,073,512
• 30 Day Avg. Volume: 2,017,290
• PEG Ratio: -0.04
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -1.57
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: -7.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.57
• Revenue Forecast (FY): $149.83M

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-28.06% Downside)

Neuronetics' overall stock score is primarily impacted by its financial challenges and bearish technical indicators. The company's ongoing profitability issues and reliance on external financing are significant risks. While there is some positive momentum from revenue growth and operational improvements, these are overshadowed by valuation concerns and technical weaknesses.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful integration of Greenbrook operations, enhancing long-term business prospects.

Operational Efficiencies

Improved operational efficiencies reduce cash burn, potentially leading to cash flow positivity, which strengthens financial sustainability.

Adolescent Treatment Uptick

Growth in adolescent treatments expands the customer base and diversifies revenue streams, supporting long-term market position.

Negative Factors

NeuroStar Revenue Decline

Declining NeuroStar revenue suggests challenges in core product sales, potentially impacting future profitability and market competitiveness.

Gross Margin Decline

A significant drop in gross margin indicates cost pressures and integration challenges, which could affect long-term profitability.

Guidance Reduction

Reduced revenue guidance reflects uncertainty in achieving growth targets, potentially impacting investor confidence and strategic planning.

Neuronetics Business Overview & Revenue Model

Company Description

Neuronetics, Inc. is a medical technology company focused on developing and commercializing innovative non-invasive therapies for psychiatric and neurological disorders. The company operates primarily in the mental health sector and is best known for its flagship product, the NeuroStar Advanced Therapy System, which utilizes transcranial magnetic stimulation (TMS) to treat major depressive disorder. Neuronetics aims to improve patient outcomes through its evidence-based treatment options, providing healthcare professionals with advanced tools to enhance mental health care.

How the Company Makes Money

Neuronetics generates revenue primarily through the sale of its NeuroStar Advanced Therapy System and the associated disposable TMS treatment coils. The company operates a direct sales model, targeting healthcare providers, including hospitals and outpatient clinics, that offer TMS therapy to patients with major depressive disorder. Additionally, Neuronetics earns revenue from recurring sales of treatment sessions and service agreements related to the NeuroStar system. The company may also engage in partnerships with healthcare organizations and research institutions to expand its market reach and validate its product efficacy, contributing to its overall financial performance.

Neuronetics Financial Statement Overview

Summary

Neuronetics faces ongoing financial challenges with consistent losses and cash flow difficulties. Despite modest revenue growth, profitability remains elusive due to high leverage and reliance on external financing.

Income Statement

Neuronetics shows a modest revenue growth over the years, with a 4.96% increase from 2023 to 2024. However, the company has consistently reported negative EBIT and net income margins, indicating ongoing profitability challenges. The gross profit margin remains relatively healthy, but the persistent negative EBITDA margin points to operational inefficiencies.

Balance Sheet

The balance sheet reflects significant leverage with a high debt-to-equity ratio, although it has improved slightly from the previous year. The equity ratio is relatively low, suggesting limited financial flexibility. The company has maintained a positive cash position, yet declining stockholders' equity is a concern.

Cash Flow

Neuronetics has experienced negative free cash flow growth, with cash flows consistently in the red. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The company relies heavily on financing activities to manage cash needs, which may not be sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.87M	74.89M	71.35M	65.21M	55.31M	49.24M
Gross Profit	65.50M	54.16M	51.70M	49.72M	43.66M	37.69M
EBITDA	-34.14M	-34.37M	-22.76M	-31.96M	-26.81M	-25.89M
Net Income	-44.50M	-43.71M	-30.19M	-37.16M	-31.19M	-27.45M
Balance Sheet
Total Assets	145.47M	140.90M	115.83M	116.88M	141.22M	78.66M
Cash, Cash Equivalents and Short-Term Investments	34.65M	18.66M	60.58M	71.88M	96.34M	50.84M
Total Debt	90.75M	82.63M	62.47M	39.74M	39.54M	38.34M
Total Liabilities	114.11M	109.10M	81.64M	59.82M	56.05M	53.16M
Stockholders Equity	27.36M	27.71M	34.19M	57.06M	85.17M	25.49M
Cash Flow
Free Cash Flow	-30.55M	-32.46M	-34.41M	-34.01M	-30.34M	-29.12M
Operating Cash Flow	-29.88M	-31.00M	-32.04M	-30.74M	-27.98M	-28.39M
Investing Cash Flow	-2.96M	-2.41M	-1.32M	6.73M	-9.84M	-730.00K
Financing Cash Flow	46.44M	-6.81M	22.70M	207.00K	83.01M	2.37M

Neuronetics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Neutral. The current price of 1.39 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 2.22, and below the 200-day MA of 3.45, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRE	51 Neutral	$209.54M	-4.07	-23.93%	―	159.45%	8.59%
ACRS	48 Neutral	$352.12M	-2.35	-113.23%	―	-41.87%	-165.76%
MDXH	44 Neutral	$164.33M	-5.21	-720.01%	―	21.68%	58.30%
STIM	41 Neutral	$104.10M	-1.84	-239.53%	―	78.62%	32.39%
XGN	41 Neutral	$161.13M	-7.68	-122.81%	―	14.08%	1.34%
ATLN	40 Neutral	$89.54M	-0.81	―	―	109.65%	77.14%

Neuronetics Corporate Events

Neuronetics CEO Retirement Announcement and Q3 Revenue Surge

On November 4, 2025, Neuronetics announced that CEO Keith J. Sullivan will retire on June 30, 2026, and the company has started searching for his successor. Sullivan will remain as a consultant post-retirement to ensure a smooth transition. The announcement coincided with the release of Neuronetics’ third-quarter 2025 financial results, showing a 101% increase in total revenue compared to the same period in 2024, driven by the acquisition of Greenbrook TMS. The company reported significant growth in U.S. clinic revenue and continued improvements in cash management, positioning it well for future growth and value delivery to patients and shareholders.