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Neuronetics Gross Margin %

: 75.26% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Neuronetics's Gross Profit for the three months ended in Jun. 2022 was $12.29 Mil. Neuronetics's Revenue for the three months ended in Jun. 2022 was $16.33 Mil. Therefore, Neuronetics's Gross Margin % for the quarter that ended in Jun. 2022 was 75.26%.


The historical rank and industry rank for Neuronetics's Gross Margin % or its related term are showing as below:

STIM' s Gross Margin % Range Over the Past 10 Years
Min: 75.44   Med: 76.48   Max: 80.65
Current: 76.06


During the past 6 years, the highest Gross Margin % of Neuronetics was 80.65%. The lowest was 75.44%. And the median was 76.48%.

STIM's Gross Margin % is ranked better than
84.75% of 223 companies
in the Medical Diagnostics & Research industry
Industry Median: 50.34 vs STIM: 76.06

Neuronetics had a gross margin of 75.26% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Neuronetics was -0.30% per year.


Neuronetics Gross Margin % Historical Data

The historical data trend for Neuronetics's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Neuronetics Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only 76.18 76.42 75.44 76.54 78.93

Neuronetics Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 80.64 77.22 76.45 75.42 75.26

Competitive Comparison

For the Diagnostics & Research subindustry, Neuronetics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Neuronetics Gross Margin % Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Neuronetics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Neuronetics's Gross Margin % falls into.



Neuronetics Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Neuronetics's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=43.7 / 55.312
=(Revenue - Cost of Goods Sold) / Revenue
=(55.312 - 11.653) / 55.312
=78.93 %

Neuronetics's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=12.3 / 16.329
=(Revenue - Cost of Goods Sold) / Revenue
=(16.329 - 4.039) / 16.329
=75.26 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Neuronetics  (NAS:STIM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Neuronetics had a gross margin of 75.26% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Neuronetics Gross Margin % Related Terms

Thank you for viewing the detailed overview of Neuronetics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Neuronetics Business Description

Neuronetics logo
Traded in Other Exchanges
Address
3222 Phoenixville Pike, Malvern, PA, USA, 19355
Neuronetics Inc a commercial stage medical technology company focused on designing, developing and marketing products that improve the quality of life for patients who suffer from psychiatric disorders. Its first commercial product, the NeuroStar Advanced Therapy System, is a non-invasive and non-systemic office-based treatment that uses transcranial magnetic stimulation, or TMS, 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 designed the NeuroStar Advanced Therapy as a non-invasive therapeutic alternative to treat patients who suffer from MDD and to address many of the key limitations of existing treatment options.
Executives
Cannell Capital Llc 10 percent owner 245 MERIWETHER CIRCLE ALTA WY 83414
Rosengarten Megan director C/O NEURONETICS, INC. 3222 PHOENIXVILLE PIKE MALVERN PA 19355
Cascella Robert director C/O HOLOGIC, INC. BEDFORD MA 01730
Shook Bruce Joseph director 162 CRICKET AVE ARDMORE PA 19003
Jaeger Wilfred E director C/O THREE ARCH PARTNERS 3200 ALPINE RD PORTOLA VALLEY CA 94028
Bakewell John K director C/O LANTHEUS MEDICAL IMAGING, INC. 331 TREBLE COVE ROAD NO. BILLERICA MA 01862
Conley Sheryl L director C/O NEURONETICS, INC. 3222 PHOENIXVILLE PIKE MALVERN PA 19355
Muir Glenn P director C/O HOLOGIC, INC. BEDFORD MA 01730
Sullivan Keith J director, officer: President and CEO C/O RELIANT TECHNOLOGIES, INC. 464 ELLIS STREET MOUNTAIN VIEW CA 94043
Macan William Andrew officer: Sr. VP, GC, CCO and Secretary 24275 KATY FREEWAY, SUITE 600 KATY TX 77494
Harper Gregory officer: VP of Prod. Dev. & Operations C/O NEURONETICS, INC 3222 PHOENIXVILLE PIKE MALVERN PA 19355
Furlong Stephen officer: CFO C/O NEURONETICS, INC. 3222 PHOENIXVILLE PIKE MALVERN PA 19355
Tropsha Yelena officer: VP of Commercial Access C/O NEURONETICS, INC 3222 PHOENIXVILLE PIKE MALVERN PA 19355
Farley Brian E director 2200 ZANKER ROAD SUITE F SAN JOSE CA 95131
Guthrie Daniel officer: Chief Commercial Officer C/O NEURONETICS, INC 322 PHOENIXVILLE PIKE MALVERN PA 19355

Neuronetics Headlines

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