📊 STIM Key Takeaways
Is Neuronetics, Inc. (STIM) a Good Investment?
Neuronetics demonstrates exceptional 99.2% revenue growth but remains unprofitable with negative operating cash flow of -$20.4M, indicating growth is not yet translating to operational efficiency. The company's high debt leverage (2.94x D/E), inability to cover interest from operations, and limited cash runway (~1.3 years at current burn rate) create material financial stress despite improving loss trends.
Why Buy Neuronetics, Inc. Stock? STIM Key Strengths
- Exceptional revenue growth of 99.2% YoY demonstrates strong market demand for core products
- Improving profitability trajectory with net losses declining 10.5% YoY and EPS losses improving 57.2%
- Healthy gross margins of 48.5% and strong liquidity ratios (2.02x current, 1.87x quick) provide operational flexibility
STIM Stock Risks: Neuronetics, Inc. Investment Risks
- Negative operating cash flow of -$20.4M despite 99% revenue growth indicates severe operational inefficiency or unsustainable cost structure during scaling phase
- High financial leverage (2.94x debt-to-equity) with inability to cover interest expenses from operations (interest coverage -4.1x) creates covenant and refinancing risk
- Negative free cash flow (-$21.2M) with $28.1M cash reserves implies ~1.3 year cash runway, leaving minimal margin for error if profitability milestone is delayed
Key Metrics to Watch
- Operating cash flow inflection point and timeline to positive OCF generation
- Operating margin expansion trajectory and path to operating profitability
- Debt covenant compliance status and refinancing requirements over next 12-24 months
Neuronetics, Inc. (STIM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.02x current ratio provides a solid financial cushion.
STIM Profit Margin, ROE & Profitability Analysis
STIM vs Healthcare Sector: How Neuronetics, Inc. Compares
How Neuronetics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Neuronetics, Inc. Stock Overvalued? STIM Valuation Analysis 2026
Based on fundamental analysis, Neuronetics, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Neuronetics, Inc. Balance Sheet: STIM Debt, Cash & Liquidity
STIM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Neuronetics, Inc.'s revenue has grown significantly by 138% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.05 indicates the company is currently unprofitable.
STIM Revenue Growth, EPS Growth & YoY Performance
STIM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $18.5M | -$9.0M | $-0.13 |
| Q2 2025 | $16.5M | -$9.8M | $-0.15 |
| Q1 2025 | $17.4M | -$7.9M | $-0.21 |
| Q3 2024 | $17.9M | -$4.9M | $-0.33 |
| Q2 2024 | $16.5M | -$4.9M | $-0.17 |
| Q1 2024 | $15.5M | -$7.9M | $-0.27 |
| Q3 2023 | $16.5M | -$4.9M | $-0.28 |
| Q2 2023 | $16.3M | -$4.9M | $-0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Neuronetics, Inc. Dividends, Buybacks & Capital Allocation
STIM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Neuronetics, Inc. (CIK: 0001227636)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STIM
What is the AI rating for STIM?
Neuronetics, Inc. (STIM) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STIM's key strengths?
Claude: Exceptional revenue growth of 99.2% YoY demonstrates strong market demand for core products. Improving profitability trajectory with net losses declining 10.5% YoY and EPS losses improving 57.2%.
What are the risks of investing in STIM?
Claude: Negative operating cash flow of -$20.4M despite 99% revenue growth indicates severe operational inefficiency or unsustainable cost structure during scaling phase. High financial leverage (2.94x debt-to-equity) with inability to cover interest expenses from operations (interest coverage -4.1x) creates covenant and refinancing risk.
What is STIM's revenue and growth?
Neuronetics, Inc. reported revenue of $149.2M.
Does STIM pay dividends?
Neuronetics, Inc. does not currently pay dividends.
Where can I find STIM SEC filings?
Official SEC filings for Neuronetics, Inc. (CIK: 0001227636) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STIM's EPS?
Neuronetics, Inc. has a diluted EPS of $-0.59.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is STIM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Neuronetics, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STIM stock overvalued or undervalued?
Valuation metrics for STIM: ROE of -174.3% (sector avg: 15%), net margin of -26.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy STIM stock in 2026?
Our dual AI analysis gives Neuronetics, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STIM's free cash flow?
Neuronetics, Inc.'s operating cash flow is $-20.4M, with capital expenditures of $801.0K. FCF margin is -14.2%.
How does STIM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -26.1% (avg: 12%), ROE -174.3% (avg: 15%), current ratio 2.02 (avg: 2).
Is Neuronetics, Inc. carrying too much debt?
STIM has a debt-to-equity ratio of 2.94x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 2.02 suggests adequate short-term liquidity.