Neurometrix Story

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NURO -- USA Stock  

USD 3.70  0.20  5.71%

Given the investment horizon of 90 days NeuroMetrix is expected to generate 9.29 times more return on investment than the market. However, the company is 9.29 times more volatile than its market benchmark. It trades about 0.22 of its potential returns per unit of risk. The DOW is currently generating roughly 0.28 per unit of risk. While many risk-averse institutional investors are getting carried away by overanalyzing healthcare space, it is reasonable to outline NeuroMetrix. We will inspect why it could be a different year for NeuroMetrix shareholders. The latest NeuroMetrix risk factors may impact the value of the stock as we estimate NeuroMetrix as currently overvalued. The real value is approaching 3.76 per share.
Published over a month ago
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Breaking down NeuroMetrix (NASDAQ:NURO) volatility
The company currently holds 1.18 M in liabilities with Debt to Equity (D/E) ratio of 0.22, which may suggest NeuroMetrix is not taking enough advantage from borrowing. NeuroMetrix has a current ratio of 3.0, suggesting that it is liquid enough and is able to pay its financial obligations when due. NeuroMetrix holds a performance score of 15 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 0.6554, which conveys possible diversification benefits within a given portfolio. Let's try to break down what NeuroMetrix's beta means in this case. As returns on the market increase, NeuroMetrix returns are expected to increase less than the market. However, during the bear market, the loss on holding NeuroMetrix will be expected to be smaller as well. Although it is essential to pay attention to NeuroMetrix price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our philosophy towards estimating future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if NeuroMetrix expected return of 1.82 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use NeuroMetrix sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change to analyze future returns on NeuroMetrix.
Volatility is a rate at which the price of Neurometrix or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Neurometrix may increase or decrease. In other words, similar to Neurometrix's beta indicator, it measures the risk of Neurometrix and helps estimate the fluctuations that may happen in a short period of time. So if prices of Neurometrix fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Neurometrix's Liquidity

Neurometrix financial leverage refers to using borrowed capital as a funding source to finance Neurometrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Neurometrix financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Neurometrix's total debt and its cash.

How Neurometrix utilizes its cash?

To perform a cash flow analysis of Neurometrix, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Neurometrix is receiving and how much cash it distributes out in a given period. The Neurometrix cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Neurometrix Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (2.23 Million)

Neurometrix Volatility Drivers

Neurometrix unsystematic risk is unique to Neurometrix and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Neurometrix you can also buy Electrocore. You can also mitigate this risk by investing in the medical instruments & supplies sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Neurometrix important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Neurometrix income statement and balance sheet. Here are more details about Neurometrix volatility.
Click cells to compare fundamentals   

Acquisition by Van Avermaete David of 5000 shares of NeuroMetrix subject to Rule 16b-3

Legal trades by Neurometrix insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
NeuroMetrix insider trading alert for grant of stock option (right to buy common stock) by Van Avermaete David, the corporate stakeholder, on 15th of January 2021. This event was filed by Neurometrix Inc with SEC on 2021-01-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Neurometrix

The entity reported the previous year's revenue of 7.28 M. Net Loss for the year was (2.82 M) with profit before overhead, payroll, taxes, and interest of 4.14 M.
 2018 2019 2020 2021 (projected)
Revenues USD16.09 M9.27 M10.66 M11.66 M
Revenues16.09 M9.27 M10.66 M11.66 M

Will NeuroMetrix continue to go insane?

The information ratio is down to 0.22 as of today. NeuroMetrix is displaying above-average volatility over the selected time horizon. Investors should scrutinize NeuroMetrix independently to ensure intended market timing strategies are aligned with expectations about NeuroMetrix volatility.

Our Final Take On NeuroMetrix

Whereas many of the other players in the medical instruments & supplies industry are either recovering or due for a correction, NeuroMetrix may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of NeuroMetrix at this time. The NeuroMetrix risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NeuroMetrix.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Neurometrix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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