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

Last update: Oct 9, 2023

Take a closer look at INMODE LTD (NASDAQ:INMD), an affordable growth stock uncovered by our stock screener. NASDAQ:INMD boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:INMD was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 22.94% over the past year.
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.
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.

How do we evaluate the Valuation for NASDAQ:INMD?

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:INMD has received a 9 out of 10:

Based on the Price/Earnings ratio of 10.71, the valuation of INMD can be described as reasonable.
98.03% of the companies in the same industry are more expensive than INMD, based on the Price/Earnings ratio.
INMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.46.
The Price/Forward Earnings ratio is 9.24, which indicates a very decent valuation of INMD.
Based on the Price/Forward Earnings ratio, INMD is valued cheaper than 99.01% of the companies in the same industry.
INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.67, 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 97.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaper than 98.03% 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.

Exploring NASDAQ:INMD's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:INMD was assigned a score of 8 for health:

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.
With an excellent Current ratio value of 11.84, INMD belongs to the best of the industry, outperforming 93.60% 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.
INMD has a better Quick ratio (11.21) than 93.10% of its industry peers.

Profitability Analysis for NASDAQ:INMD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:INMD has achieved a 9:

INMD's Return On Assets of 24.89% is amongst the best of the industry. INMD outperforms 98.52% of its industry peers.
With an excellent Return On Equity value of 27.43%, INMD belongs to the best of the industry, outperforming 98.03% of the companies in the same industry.
INMD's Return On Invested Capital of 28.04% is amongst the best of the industry. INMD outperforms 99.51% 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%.
With an excellent Profit Margin value of 36.77%, INMD belongs to the best of the industry, outperforming 98.52% of the companies in the same industry.
In the last couple of years the Profit Margin of INMD has grown nicely.
INMD has a Operating Margin of 42.59%. This is amongst the best in the industry. INMD outperforms 100.00% of its industry peers.
INMD's Operating Margin has improved in the last couple of years.
INMD's Gross Margin of 83.89% is amongst the best of the industry. INMD outperforms 96.06% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.