Neuronetics, Inc.
$1.39
+2.3%Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -2.4).
Valuation inputs: P/E -2.4, earnings yield N/A, momentum +2.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -1.7%, ROIC -27.0%).
Profitability stack: net margin -26.2%, ROE -1.7%, ROIC -27.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +81.5%, momentum +2.3%, net margin -26.2%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Neuronetics, Inc. Market vs Earnings Trajectory
Loading price and EPS data...
Neuronetics, Inc. Fair Value Envelope
Neuronetics, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Neuronetics, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Neuronetics, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Neuronetics, Inc. Street Expectations Map
Wall Street analysts project that STIM stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 8.00, with estimates ranging from a low of 8.00 to a high of 8.00.
The consensus 1-year price target stands at 8.00, with estimates ranging from a low of 8.00 to a high of 8.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Neuronetics, Inc. Insider Positioning
During the last 12 months, insiders have purchased $4.70M and sold $999K worth of STIM shares, resulting in $3.70M of net buying activity.
3 Months
3.6M
4.70M
87.3K
116.97K
+4.6M
+$4.59M
3-6 Months
0
0.00
104.9K
164.91K
-165K
-$165K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
192.8K
717.24K
-717K
-$717K
Top Buyers
Chernett Jorey
10 Percent Owner
$4.70M
Top Sellers
Madryn Asset Management, Lp
10 Percent Owner
$717K
Sullivan Keith J
Other: Former Officer & Director
$193K
Macan William Andrew
Officer: Evp, Clo And Cs
$56K
Pfanstiel Steven
Officer: Former Evp, Cfo And Treasurer
$33K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $3.70M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Sustained buying momentum: Consistent net buying over multiple quarters suggests insiders maintain conviction in the company's prospects. This is particularly meaningful if buying continued through market volatility.
No Dividend Yield Data
STIM has not reported any dividend yield values in the available annual periods.
stim Dividend History
Learning Layer
Related Guides
Build conviction on STIM by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.