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

Last update: Oct 5, 2023

Here's INMODE LTD (NASDAQ:INMD) for you, a growth stock our stock screener believes is undervalued. NASDAQ:INMD is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:INMD's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:INMD scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 22.94% over the past year.
INMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.72% yearly.
INMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.95%.
INMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 53.39% yearly.
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.
INMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.34% yearly.

Valuation Assessment of 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 9 for valuation:

A Price/Earnings ratio of 10.53 indicates a reasonable valuation of INMD.
Compared to the rest of the industry, the Price/Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 98.00% of the companies listed in the same industry.
INMD is valuated cheaply when we compare the Price/Earnings ratio to 25.33, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.08, which indicates a very decent valuation of INMD.
INMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 99.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.56, INMD is valued rather cheaply.
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.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaper than 98.00% 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.
The excellent profitability rating of INMD may justify a higher PE ratio.
INMD's earnings are expected to grow with 13.36% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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.
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 has a Current ratio of 11.84. This is amongst the best in 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.
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.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:INMD scores a 9 out of 10:

The Return On Assets of INMD (24.89%) is better than 98.50% of its industry peers.
INMD has a better Return On Equity (27.43%) than 98.00% of its industry peers.
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.
INMD had an Average Return On Invested Capital over the past 3 years of 30.44%. This is significantly above the industry average of 8.56%.
The Profit Margin of INMD (36.77%) is better than 98.50% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 42.59%, INMD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
INMD's Operating Margin has improved in the last couple of years.
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.