Neuronetics Inc.
Find Ratings ReportsNEURONETICS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. NEURONETICS INC is extremely liquid. Currently, the Quick Ratio is 3.96 which clearly shows the ability to cover any short-term cash needs. STIM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 40.08% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 20.31 | 18.2 |
EBITDA ($mil) | -2.02 | -3.02 |
EBIT ($mil) | -2.52 | -3.63 |
Net Income ($mil) | -5.38 | -8.29 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 59.68 | 70.34 |
Total Assets ($mil) | 115.83 | 116.88 |
Total Debt ($mil) | 62.47 | 39.75 |
Equity ($mil) | 34.19 | 57.06 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 89.49 | 79.2 |
EBITDA Margin | -9.93 | -16.61 |
Operating Margin | -12.42 | -19.93 |
Sales Turnover | 0.62 | 0.56 |
Return on Assets | -26.06 | -31.79 |
Return on Equity | -88.3 | -65.12 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 4.73 | 2.98 |
Debt/Capital | 0.65 | 0.41 |
Interest Expense | 1.84 | 1.21 |
Interest Coverage | -1.37 | -2.99 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 29.09 | 27.27 |
Div / share | 0.0 | 0.0 |
EPS | -0.19 | -0.3 |
Book value / share | 1.18 | 2.09 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 223123.0 | 102285.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 3.37 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, NEURONETICS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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STIM NM | Peers 53.34 | STIM NM | Peers 44.47 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. STIM's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. STIM's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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STIM NM | Peers 26.06 | STIM NA | Peers 1.95 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. STIM's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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STIM 3.37 | Peers 23.59 | STIM 22.47 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. STIM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, STIM is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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STIM 1.61 | Peers 14.13 | STIM 9.41 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. STIM is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. STIM significantly trails its peers on the basis of sales growth. |
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