NASDAQ:INMD is showing decent growth, but is still valued reasonably.

Last update: Oct 2, 2023

Uncover the potential of INMODE LTD (NASDAQ:INMD), a growth stock that our stock screener found to be reasonably priced. NASDAQ:INMD is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Understanding NASDAQ:INMD's Growth Score

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:INMD boasts 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!
The Earnings Per Share is expected to grow by 13.36% on average over the next years. This is quite good.
Based on estimates for the next years, INMD will show a quite strong growth in Revenue. The Revenue will grow by 16.34% on average per year.

Valuation Analysis for 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:

With a Price/Earnings ratio of 11.37, the valuation of INMD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 97.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.75. INMD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.80, the valuation of INMD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, INMD is valued cheaply inside the industry as 99.00% of the companies are valued more expensively.
INMD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 18.85, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 97.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 97.00% of the companies listed 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.
The excellent profitability rating of INMD 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.

Deciphering NASDAQ:INMD's Health Rating

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:

There is no outstanding debt for INMD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
INMD has a Current Ratio of 11.84. This indicates that INMD is financially healthy and has no problem in meeting 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.
The Quick ratio of INMD (11.21) is better than 93.00% of its industry peers.

Evaluating Profitability: NASDAQ:INMD

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:INMD has earned a 9 out of 10:

With an excellent Return On Assets value of 24.89%, INMD belongs to the best of the industry, outperforming 98.50% of the companies in the same industry.
The Return On Equity of INMD (27.43%) is better than 98.00% of its industry peers.
The Return On Invested Capital of INMD (28.04%) is better than 99.50% of its industry peers.
INMD had an Average Return On Invested Capital over the past 3 years of 30.44%. This is significantly above the industry average of 8.57%.
INMD's Profit Margin of 36.77% is amongst the best of the industry. INMD outperforms 98.50% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
The Operating Margin of INMD (42.59%) is better than 100.00% of its industry peers.
INMD's Operating Margin has improved in the last couple of years.
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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

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.