Last Updated: 08 Nov 2024
Executive Summary
Neuronetics Inc. (STIM) is a commercial-stage medical technology company specializing in psychiatric disorder treatments. Despite a strong revenue stream of $72.07 million TTM, the company faces profitability challenges with a negative EBITDA of $24.65 million. The latest stock price of $1.08 reflects a significant decline from its 52-week high of $5.07.
Company Overview
Neuronetics designs, develops, and markets products for treating psychiatric disorders. Its flagship product, NeuroStar Advanced Therapy, is a non-invasive treatment for major depressive disorder. The company operates in the United States and internationally, with headquarters in Malvern, Pennsylvania.
Fundamental Analysis
Revenue: Neuronetics reported revenue of $72.07 million TTM, a 0.066% decline year-over-year.
Earnings: The company reported a net loss of $1.1 per share TTM, with a negative profit margin of 0.451.
Valuation: Neuronetics has a market capitalization of $32.73 million, with a price-to-sales ratio of 0.454 and a negative EV/EBITDA of 2.022.
Technical Analysis
Moving Averages: The stock's 50-day moving average is $0.89, while the 200-day moving average is $2.299, indicating a downtrend.
Support and Resistance: The stock is trading below its 200-day moving average and near its 52-week low of $0.664, suggesting potential support. Resistance may be encountered at the 50-day moving average or the 52-week high of $5.07.
Short Term Outlook
The short-term outlook for Neuronetics is uncertain. The company's profitability challenges and declining revenue growth may continue to weigh on the stock price. However, the stock's proximity to its 52-week low could provide some support.
Long Term Outlook
The long-term outlook for Neuronetics depends on the company's ability to improve its profitability and grow its revenue. The company's strong revenue base and the increasing prevalence of psychiatric disorders provide potential growth opportunities. However, the competitive landscape and the regulatory environment may pose challenges.
Analyst Recommendations
Analysts have a mixed view on Neuronetics. Three analysts rate the stock as a "Buy," while one rates it as a "Hold." The average analyst target price is $3.33, which represents a potential upside of over 200% from the current stock price.
