NASDAQ:INMD: good value for what you're paying.

Last update: Oct 10, 2023

Discover INMODE LTD (NASDAQ:INMD), an undervalued stock highlighted by our stock screener. NASDAQ:INMD showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NASDAQ:INMD's Valuation Score

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 10.38, the valuation of INMD can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 98.03% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of INMD to the average of the S&P500 Index (25.63), we can say INMD is valued rather cheaply.
The Price/Forward Earnings ratio is 8.96, 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 99.01% of the companies in the same industry.
INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.82, 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 98.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaply inside the industry as 98.03% 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.
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.

Profitability Insights: NASDAQ:INMD

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:INMD, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 24.89%, INMD belongs to the best of the industry, outperforming 98.52% of the companies in the same industry.
INMD has a better Return On Equity (27.43%) than 98.03% of its industry peers.
With an excellent Return On Invested Capital value of 28.04%, INMD belongs to the best of the industry, outperforming 99.51% 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 8.56%.
INMD's Profit Margin of 36.77% is amongst the best of the industry. INMD outperforms 98.52% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
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.
Looking at the Gross Margin, with a value of 83.89%, INMD belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.

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:

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 93.60% of its industry peers.
A Quick Ratio of 11.21 indicates that INMD has no problem at all paying its short term obligations.
INMD's Quick ratio of 11.21 is amongst the best of the industry. INMD outperforms 93.10% of its industry peers.

Evaluating Growth: NASDAQ:INMD

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:INMD, the assigned 8 reflects its growth potential:

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%.
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.
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.
The Revenue is expected to grow by 16.34% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.