NASDAQ:INMD, a growth stock which is not overvalued.

Last update: Sep 28, 2023

Our stock screening tool has pinpointed INMODE LTD (NASDAQ:INMD) as a growth stock that isn't overvalued. NASDAQ:INMD is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Analyzing Growth Metrics

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.
INMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.72% yearly.
The Revenue has grown by 22.95% in the past year. This is a very strong growth!
The Revenue has been growing by 53.39% on average over the past years. This is a very strong growth!
Based on estimates for the next years, INMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.36% on average per year.
INMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.34% yearly.

How do we evaluate the Valuation for NASDAQ:INMD?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:INMD has earned a 8 for valuation:

Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INMD to the average of the S&P500 Index (25.59), we can say INMD is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.48, the valuation of INMD can be described as very reasonable.
98.50% of the companies in the same industry are more expensive than INMD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 18.75. INMD is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaply inside the industry as 97.00% of the companies are valued more expensively.
INMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INMD is cheaper than 97.00% of the companies in the same industry.
INMD's 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 Analysis for NASDAQ:INMD

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:INMD has earned a 8 out of 10:

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.
Looking at the Current ratio, with a value of 11.84, INMD belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
A Quick Ratio of 11.21 indicates that INMD has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 11.21, INMD belongs to the best of the industry, outperforming 93.00% of the companies in the same industry.

Analyzing Profitability Metrics

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:

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

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

For an up to date full fundamental analysis you can check the fundamental report of INMD

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.