Investors seeking growth at a reasonable cost should explore NASDAQ:INMD.

Last update: Oct 4, 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.

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

Valuation Examination for NASDAQ:INMD

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:INMD boasts a 9 out of 10:

With a Price/Earnings ratio of 10.61, the valuation of INMD can be described as very reasonable.
Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
INMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
INMD is valuated reasonably with a Price/Forward Earnings ratio of 9.15.
Based on the Price/Forward Earnings ratio, INMD is valued cheaply inside the industry as 99.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.41, INMD is valued rather cheaply.
INMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INMD is cheaper than 97.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
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.

Assessing Health for NASDAQ:INMD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:INMD, the assigned 8 for health provides valuable insights:

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.
A Current Ratio of 11.84 indicates that INMD has no problem at all paying its short term obligations.
The Current ratio of INMD (11.84) is better than 93.50% of its industry peers.
INMD has a Quick Ratio of 11.21. This indicates that INMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 11.21, INMD belongs to the top of the industry, outperforming 93.00% of the companies in the same industry.

Understanding NASDAQ:INMD's Profitability

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's Return On Assets of 24.89% is amongst the best of the industry. INMD outperforms 98.50% of its industry peers.
INMD's Return On Equity of 27.43% is amongst the best of the industry. INMD outperforms 98.00% of its industry peers.
INMD has a better Return On Invested Capital (28.04%) than 99.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INMD is significantly above the industry average of 8.56%.
INMD has a Profit Margin of 36.77%. This is amongst the best in the industry. INMD outperforms 98.50% of its industry peers.
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.
INMD's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 83.89%, INMD belongs to the top 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.

Our latest full fundamental report of INMD contains the most current fundamental analsysis.

Keep in mind

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.