Looking for growth without the hefty price tag? Consider NASDAQ:INMD.

Last update: Sep 25, 2023

Our stock screener has spotted INMODE LTD (NASDAQ:INMD) as a growth stock which is not overvalued. NASDAQ:INMD is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

What does the Growth looks like for NASDAQ:INMD

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:INMD has achieved a 8 out of 10:

INMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.94%, which is quite impressive.
The Earnings Per Share has been growing by 48.72% on average over the past years. This is a very strong growth
Looking at the last year, INMD shows a very strong growth in Revenue. The Revenue has grown by 22.95%.
Measured over the past years, INMD shows a very strong growth in Revenue. The Revenue has been growing by 53.39% on average per year.
The Earnings Per Share is expected to grow by 13.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.34% on average over the next years. This is quite good.

Valuation Assessment of NASDAQ:INMD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:INMD has achieved a 8 out of 10:

INMD's Price/Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 95.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of INMD to the average of the S&P500 Index (25.89), we can say INMD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.39, the valuation of INMD can be described as very reasonable.
98.00% of the companies in the same industry are more expensive than INMD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of INMD to the average of the S&P500 Index (18.97), we can say INMD is valued slightly cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 97.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaper than 97.00% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INMD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as INMD's earnings are expected to grow with 13.36% in the coming years.

Health Examination for NASDAQ:INMD

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:INMD, the assigned 8 reflects its health status:

INMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 11.84 indicates that INMD has no problem at all paying its short term obligations.
INMD's Current ratio of 11.84 is amongst the best of the industry. INMD outperforms 93.50% of its industry peers.
A Quick Ratio of 11.21 indicates that INMD has no problem at all paying its short term obligations.
INMD has a better Quick ratio (11.21) than 93.00% of its industry peers.

Profitability Assessment of NASDAQ:INMD

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:INMD was assigned a score of 9 for profitability:

Looking at the Return On Assets, with a value of 24.89%, INMD belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
With an excellent Return On Equity value of 27.43%, INMD belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
INMD has a Return On Invested Capital of 28.04%. This is amongst the best in the industry. INMD outperforms 99.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INMD is significantly above the industry average of 8.57%.
Looking at the Profit Margin, with a value of 36.77%, INMD belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
INMD's Profit Margin has improved in the last couple of years.
INMD's Operating Margin of 42.59% is amongst the best of the industry. INMD outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of INMD has grown nicely.
With an excellent Gross Margin value of 83.89%, INMD belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of INMD for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.