Neuronetics (STIM) AI Stock Analysis

• Market Cap: $228.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 54.17%
• EPS Growth: -2.43%
• Country: US
• Employees: 716
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.15
• Shares Outstanding: 66,124,820
• 10 Day Avg. Volume: 1,732,910
• 30 Day Avg. Volume: 1,596,378
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 4.78
• Enterprise Value/Ebitda: -7.73
• 1Y Price Target: $5.83
• Price Target Upside: 86.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: $3.00 ▼(-3.85% Downside)

Neuronetics' financial performance is the most significant factor, with ongoing losses and high leverage posing substantial risks. Technical indicators suggest bearish momentum, while valuation metrics highlight unattractiveness due to negative earnings. Despite positive revenue growth and strategic initiatives, challenges in profitability and cash flow targets weigh heavily on the overall score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and successful integration of Greenbrook operations, supporting long-term business expansion.

Strategic CFO Appointment

The new CFO brings extensive industry experience, which is expected to enhance financial strategy and support the company's growth initiatives.

Clinic Revenue Achievements

Record clinic revenue reflects successful market penetration and operational execution, reinforcing the company's competitive position in the healthcare sector.

Negative Factors

Gross Margin Decline

The significant decline in gross margin suggests cost management issues, which could impact profitability and require strategic adjustments.

Consistent Net Loss

Persistent net losses indicate ongoing profitability challenges, which may hinder the company's ability to invest in growth and innovation.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to navigate economic downturns.

Neuronetics Business Overview & Revenue Model

Company Description

Neuronetics, Inc. is a medical technology company focused on developing and commercializing non-invasive therapies for neuropsychiatric disorders. The company operates primarily in the healthcare sector, offering innovative solutions for conditions such as major depressive disorder (MDD) through its flagship product, the NeuroStar Advanced Therapy System. This system uses transcranial magnetic stimulation (TMS) to provide an alternative treatment for patients who have not responded to traditional therapies.

How the Company Makes Money

Neuronetics generates revenue primarily through the sale of its NeuroStar Advanced Therapy Systems and associated disposables, such as treatment coils and patient kits. The company operates on a model that includes both direct sales to healthcare providers and leasing options for its systems. Additional revenue streams come from the sale of maintenance services and training for healthcare professionals. Significant partnerships with healthcare institutions and providers enhance its market presence and drive sales, while reimbursement policies from insurance companies for TMS therapy also play a crucial role in facilitating patient access and adoption of their technology, thereby contributing to the company's earnings.

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	111.11M	74.89M	71.35M	65.21M	55.31M	49.24M
Gross Profit	62.39M	54.16M	51.70M	49.72M	43.66M	37.69M
EBITDA	-38.61M	-34.37M	-22.76M	-31.26M	-26.55M	-21.07M
Net Income	-48.29M	-43.71M	-30.19M	-39.21M	-35.60M	-32.28M
Balance Sheet
Total Assets	134.65M	140.90M	115.83M	116.88M	141.22M	78.66M
Cash, Cash Equivalents and Short-Term Investments	11.14M	18.66M	60.58M	71.88M	96.34M	50.84M
Total Debt	80.66M	82.63M	62.47M	39.74M	39.54M	38.34M
Total Liabilities	103.14M	109.10M	81.64M	59.82M	56.05M	53.16M
Stockholders Equity	27.15M	27.71M	34.19M	57.06M	85.17M	25.49M
Cash Flow
Free Cash Flow	-35.46M	-32.46M	-34.41M	-34.01M	-30.34M	-29.12M
Operating Cash Flow	-34.51M	-31.00M	-32.04M	-30.74M	-27.98M	-28.39M
Investing Cash Flow	-2.83M	-2.41M	-1.32M	6.73M	-9.84M	-730.00K
Financing Cash Flow	12.17M	-6.81M	22.70M	207.00K	83.01M	2.37M

Neuronetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.12
• 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 Negative. The current price of 3.12 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.74, and below the 200-day MA of 3.45, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.81 is Neutral, neither overbought nor oversold. The STOCH value of 48.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDXH	57 Neutral	$189.57M	―	-1552.23%	―	22.56%	41.62%
ACRS	55 Neutral	$213.41M	―	-101.41%	―	-47.56%	-65.54%
PSNL	52 Neutral	$540.93M	―	-60.26%	―	0.36%	22.13%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
SERA	49 Neutral	$116.85M	―	-44.24%	―	0.93%	13.99%
STIM	45 Neutral	$228.79M	―	-207.57%	―	54.17%	-2.43%
BDSX	42 Neutral	$60.56M	―	-219.68%	―	25.70%	39.23%

Neuronetics Corporate Events

Neuronetics Reports Q2 2025 Financial Results Surge

Neuronetics, Inc. announced its financial and operational results for the second quarter of 2025, highlighting a significant revenue increase of 132% compared to the same period in 2024, primarily due to the acquisition of Greenbrook TMS Inc. The company reported a total revenue of $38.1 million, with U.S. clinic revenue reaching $23.0 million. Despite a decrease in gross margin to 46.6% from 74.0% in the previous year, the company reduced cash used in operations to $3.5 million, surpassing its target. The company also secured an additional $10 million in funding under its existing debt agreement with Perceptive Advisors LLC and extended its minimum liquidity requirement to September 2026. Neuronetics aims to achieve positive cash flow from operations in 2025 and continues to focus on strategic priorities to drive sustainable growth.

The most recent analyst rating on (STIM) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.