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Neuronetics (Neuronetics) Operating Margin % : -21.79% (As of Dec. 2023)


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What is Neuronetics Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Neuronetics's Operating Income for the three months ended in Dec. 2023 was $-4.43 Mil. Neuronetics's Revenue for the three months ended in Dec. 2023 was $20.31 Mil. Therefore, Neuronetics's Operating Margin % for the quarter that ended in Dec. 2023 was -21.79%.

Warning Sign:

Neuronetics Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.2%.

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

STIM' s Operating Margin % Range Over the Past 10 Years
Min: -53.85   Med: -42.9   Max: -27.28
Current: -42.82


STIM's Operating Margin % is ranked worse than
66.81% of 226 companies
in the Medical Diagnostics & Research industry
Industry Median: -5.15 vs STIM: -42.82

Neuronetics's 5-Year Average Operating Margin % Growth Rate was -4.20% per year.

Neuronetics's Operating Income for the three months ended in Dec. 2023 was $-4.43 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-30.55 Mil.


Neuronetics Operating Margin % Historical Data

The historical data trend for Neuronetics's Operating 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 Operating Margin % Chart

Neuronetics Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial -42.98 -45.30 -49.83 -53.85 -42.82

Neuronetics Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial 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 -42.46 -63.75 -41.73 -49.60 -21.79

Competitive Comparison of Neuronetics's Operating Margin %

For the Diagnostics & Research subindustry, Neuronetics's Operating Margin %, along with its competitors' market caps and Operating 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's Operating Margin % Distribution in the Medical Diagnostics & Research Industry

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

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



Neuronetics Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Neuronetics's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-30.554 / 71.348
=-42.82 %

Neuronetics's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-4.427 / 20.314
=-21.79 %

* 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.


Neuronetics  (NAS:STIM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Neuronetics Operating Margin % Related Terms

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


Neuronetics (Neuronetics) Business Description

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
Keith J Sullivan director, officer: President and CEO C/O RELIANT TECHNOLOGIES, INC., 464 ELLIS STREET, MOUNTAIN VIEW CA 94043
William Andrew Macan officer: Sr. VP, GC, CCO and Secretary 24275 KATY FREEWAY, SUITE 600, KATY TX 77494
Stephen Furlong officer: CFO C/O NEURONETICS, INC., 3222 PHOENIXVILLE PIKE, MALVERN PA 19355
Robert Cascella director C/O HOLOGIC, INC., BEDFORD MA 01730
John K Bakewell director C/O LANTHEUS MEDICAL IMAGING, INC., 331 TREBLE COVE ROAD, NO. BILLERICA MA 01862
Cannell Capital Llc 10 percent owner 245 MERIWETHER CIRCLE, ALTA WY 83414
Joseph H Capper director BIOTELEMETRY, INC., 1000 CEDAR HOLLOW ROAD, #102, MALVERN PA 19355
Bruce Joseph Shook director 162 CRICKET AVE, ARDMORE PA 19003
Megan Rosengarten director C/O NEURONETICS, INC., 3222 PHOENIXVILLE PIKE, MALVERN PA 19355
Sheryl L Conley director C/O NEURONETICS, INC., 3222 PHOENIXVILLE PIKE, MALVERN PA 19355
Wilfred E Jaeger director C/O THREE ARCH PARTNERS, 3200 ALPINE RD, PORTOLA VALLEY CA 94028
Glenn P Muir director C/O HOLOGIC, INC., BEDFORD MA 01730
Gregory Harper officer: VP of Prod. Dev. & Operations C/O NEURONETICS, INC, 3222 PHOENIXVILLE PIKE, MALVERN PA 19355
Brian E Farley director 2200 ZANKER ROAD, SUITE F, SAN JOSE CA 95131
Daniel Guthrie officer: Chief Commercial Officer C/O NEURONETICS, INC, 322 PHOENIXVILLE PIKE, MALVERN PA 19355