In the world of growth stocks, NASDAQ:INMD shines as a value proposition.

Last update: Oct 10, 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.

Analyzing Growth Metrics

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:

The Earnings Per Share has grown by an impressive 22.94% over the past year.
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%.
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.
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 assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:INMD was assigned a score of 9 for valuation:

Based on the Price/Earnings ratio of 10.38, the valuation of INMD can be described as reasonable.
INMD's Price/Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 98.03% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.63. INMD is valued rather cheaply when compared to this.
INMD is valuated reasonably with a Price/Forward Earnings ratio of 8.96.
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.
The average S&P500 Price/Forward Earnings ratio is at 18.82. INMD is valued rather cheaply when compared to this.
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 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.
A more expensive valuation may be justified as INMD's earnings are expected to grow with 13.36% in the coming years.

Evaluating Health: NASDAQ:INMD

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:INMD has earned a 8 out of 10:

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.
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.
INMD has a better Quick ratio (11.21) than 93.10% 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:

Looking at the Return On Assets, with a value of 24.89%, INMD belongs to the top of the industry, outperforming 98.52% of the companies in the same industry.
INMD's Return On Equity of 27.43% is amongst the best of the industry. INMD outperforms 98.03% of its industry peers.
INMD's Return On Invested Capital of 28.04% is amongst the best of the industry. INMD outperforms 99.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INMD is significantly above the industry average of 8.56%.
The Profit Margin of INMD (36.77%) is better than 98.52% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 42.59%, INMD belongs to the best 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.
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.

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

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.