Neuronetics, Inc. — Earnings Quality Grade F
STIM · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 40 days, change -74 days YoY
AR growth -29.5% vs revenue growth 99.2%
Revenue 99.2%, CFFO 34.3%. Cash follows revenue
Expense Quality
Inventory 1.9% vs COGS 270.7%. Normal
CapEx growth -45.4% vs revenue 99.2%. Normal
SG&A/Gross Profit = 134.4%, exceeds 70%
Gross margin swung -23.8pp (72.3% → 48.5%)
Cash Flow Quality
CFFO/NI = 0.52. Below 1.0
FCF is negative ($-0.0B)
Accruals ratio = -13.2%. Low accruals
Cash $0.0B covers only 31% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 187% of equity. Over 50%
Interest coverage = -4.1x (<2x). Financial stress
Other assets 3.1% vs revenue 99.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 9% YoY. Normal
Manipulation Score
M-Score = -2.56 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25