Neuronetics (STIM) AI Stock Analysis

• Market Cap: $295.53M
• Dividend Yield: N/A
• Average Volume (3M): 969.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 22.16%
• EPS Growth: -37.60%
• Country: US
• Employees: 716
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.21
• Shares Outstanding: 66,113,820
• 10 Day Avg. Volume: 920,704
• 30 Day Avg. Volume: 969,087
• PEG Ratio: -1.13
• Price to Book (P/B): 6.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.83
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: -2.46
• 1Y Price Target: $7.50
• Price Target Upside: 68.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $4.50 ▲(1.35%Upside)

Neuronetics' overall stock score is influenced by ongoing financial challenges and negative valuation metrics. However, positive technical indicators and strategic initiatives, including successful acquisitions and leadership changes, provide some optimism for future performance.

Positive Factors

Earnings

STIM reported a solid Q1 operationally, with revenue of $32.0M, well above consensus estimates.

Growth Strategy

The combination with Greenbrook is off to a good start, leading to a reaffirmation of the BUY recommendation with a target price increase to $8 from $5.

Negative Factors

Financial Performance

The stock traded off on the higher-than-expected cash burn for Q1.

Profitability

Gross margin decreased to 66.2% from 77.6% due to the inclusion of the lower margin Greenbrook operations.

Neuronetics Business Overview & Revenue Model

Company Description

Neuronetics, Inc. (STIM) is a medical technology company focused on developing and commercializing products that improve the quality of life for patients suffering from psychiatric and neurological disorders. The company is best known for its NeuroStar Advanced Therapy System, a non-invasive, non-systemic, FDA-cleared transcranial magnetic stimulation (TMS) device designed to treat major depressive disorder (MDD) in adults who have not seen satisfactory improvement from prior antidepressant medication. Neuronetics operates within the healthcare sector, specifically targeting the medical device and mental health treatment markets.

How the Company Makes Money

Neuronetics generates revenue primarily through the sale and lease of its NeuroStar Advanced Therapy Systems to healthcare providers. In addition to the initial sale or leasing of the device, the company earns recurring revenue by selling treatment sessions and consumables required for the operation of the NeuroStar system. This model ensures a steady stream of income as providers purchase additional treatment sessions for patients. Furthermore, Neuronetics may engage in partnerships with clinics and health organizations to expand its market presence and adoption of its therapy systems. The company's earnings are influenced by factors such as insurance reimbursements, healthcare regulations, and the overall demand for non-drug treatment options for depression.

Neuronetics Financial Statement Overview

Summary

Neuronetics faces ongoing financial challenges with consistent losses and negative cash flow. Despite modest revenue growth, the company struggles with profitability and relies heavily 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.89M	71.35M	65.21M	55.31M	49.24M
Gross Profit	54.16M	51.70M	49.72M	43.66M	37.69M
EBITDA	-34.56M	-22.76M	-31.26M	-26.55M	-21.07M
Net Income	-43.71M	-30.19M	-39.21M	-35.60M	-32.28M
Balance Sheet
Total Assets	140.90M	115.83M	116.88M	141.22M	78.66M
Cash, Cash Equivalents and Short-Term Investments	18.66M	60.58M	71.88M	96.34M	50.84M
Total Debt	82.63M	62.47M	39.74M	39.54M	38.34M
Total Liabilities	109.10M	81.64M	59.82M	56.05M	53.16M
Stockholders Equity	27.71M	34.19M	57.06M	85.17M	25.49M
Cash Flow
Free Cash Flow	-32.46M	-34.41M	-34.01M	-30.34M	-29.12M
Operating Cash Flow	-31.00M	-32.04M	-30.74M	-27.98M	-28.39M
Investing Cash Flow	-2.41M	-1.32M	6.73M	-9.84M	-730.00K
Financing Cash Flow	-6.81M	22.70M	207.00K	83.01M	2.37M

Neuronetics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STIM, the sentiment is Positive. The current price of 4.44 is above the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.81, and above the 200-day MA of 3.03, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STIM.

Neuronetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STIM	58 Neutral	$295.53M	―	-152.14%	―	22.16%	-37.60%
PSNL	56 Neutral	$492.85M	―	-51.25%	―	15.57%	31.82%
MDXH	55 Neutral	$122.11M	―	-1552.23%	―	25.46%	21.83%
SERA	52 Neutral	$109.25M	―	-41.36%	―	-44.17%	12.77%
Sector *	46 Neutral	C$202.78M	-3.27	-23.14%	2.83%	20.78%	-1.17%
ACRS	46 Neutral	$167.84M	―	-91.03%	―	-40.09%	-18.67%
BDSX	45 Neutral	$56.88M	―	-1454.41%	―	35.76%	47.48%

Neuronetics Corporate Events

Neuronetics Appoints New CFO Amid Strategic Expansion

On July 15, 2025, Neuronetics appointed Steven Pfanstiel as Executive Vice President, Chief Financial Officer, and Treasurer, succeeding Steve Furlong, who will retire in March 2026. Pfanstiel brings extensive experience from his previous roles in the healthcare industry, notably at Marinus Pharmaceuticals and LifeScan. His appointment is part of Neuronetics’ strategic vision to expand access to mental health treatments and achieve sustainable growth. The company also reaffirmed its financial guidance for the second quarter and full year 2025, highlighting its ongoing integration of Greenbrook operations and its path to achieving positive cash flow in the third quarter of 2025.

The most recent analyst rating on (STIM) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics Holds Annual Meeting, Elects Directors

On May 22, 2025, Neuronetics, Inc. held its Annual Meeting of Stockholders, where 81.38% of eligible shares were represented. During the meeting, all director nominees were elected for a one-year term, KPMG LLP’s appointment as the independent auditor for 2025 was ratified, and executive compensation for 2024 was approved. However, a proposal to eliminate supermajority voting requirements in the company’s governance documents was not approved.

The most recent analyst rating on (STIM) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Neuronetics stock, see the STIM Stock Forecast page.

Neuronetics Announces CFO Retirement Amidst Q1 Growth

On May 6, 2025, Neuronetics announced the upcoming retirement of CFO Stephen Furlong in March 2026, with a search for his successor underway. The company reported significant financial growth in the first quarter of 2025, with an 84% revenue increase driven by the Greenbrook acquisition. Neuronetics also highlighted major insurance coverage expansions for adolescent TMS treatment and projected achieving positive cash flow in the third quarter of 2025.