Stimulating earnings turnaround
Nexstim is a medical technology company whose magnetic stimulation technology is used in pre-operative brain mapping and to treat neurological diseases and disorders. The company is a technologically advanced niche player in large markets supported by megatrends. Nexstim’s commercialization is still in relatively early stages, but major losses are becoming a thing of the past. Share valuation relies strongly on future expectations, especially on growth in recurring net sales. Thus, the investor has to bear the risk of expectations materializing. We find the valuation reasonable but it does not provide investors sufficient expected return relative to the still high risk profile at the current level. We feel that the share is suitable for a patient growth investor who tolerates high risk.
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Nexstim
Nexstim operates in medical technology. The company has developed a non-invasive brain stimulation technology called SmartFocus®. It is a navigated transcranial magnetic stimulation (nTMS) technology with 3D navigation providing targeting of the TMS to the specific area of the brain. The technology is aimed for the treatment of major depression and chronic neuropathic pain. The company was founded in 2000 and has its headquarters in Helsinki.
Read more on company pageKey Estimate Figures15.08.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 6.4 | 10.3 | 8.5 |
growth-% | 55.51 % | 61.05 % | -17.18 % |
EBIT (adj.) | -1.5 | 1.2 | -1.8 |
EBIT-% (adj.) | -22.70 % | 11.26 % | -20.89 % |
EPS (adj.) | -0.11 | 0.27 | -0.26 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | 18.85 | - |
EV/EBITDA | - | 21.81 | - |