Despite its growth, NASDAQ:INMD remains within the realm of affordability.

Last update: Oct 11, 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.

A Closer Look at Growth for 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:

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%.
The Revenue has been growing by 53.39% on average over the past years. This is a very strong growth!
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.

Exploring NASDAQ:INMD's Valuation

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:

With a Price/Earnings ratio of 10.83, the valuation of INMD can be described as very reasonable.
97.54% of the companies in the same industry are more expensive than INMD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.88, INMD is valued rather cheaply.
INMD is valuated reasonably with a Price/Forward Earnings ratio of 9.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 99.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of INMD to the average of the S&P500 Index (18.97), we can say INMD is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaply inside the industry as 98.03% of the companies are valued more expensively.
INMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INMD is cheaper than 98.03% of the companies in the same industry.
INMD's 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.

Health Analysis for NASDAQ:INMD

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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.
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.
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's Quick ratio of 11.21 is amongst the best of the industry. INMD outperforms 93.10% of its industry peers.

A Closer Look at Profitability for NASDAQ:INMD

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:INMD, the assigned 9 is noteworthy for 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's Return On Equity of 27.43% is amongst the best of the industry. INMD outperforms 98.03% of its industry peers.
The Return On Invested Capital of INMD (28.04%) is better than 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%.
The Profit Margin of INMD (36.77%) is better than 98.52% of its industry peers.
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.
In the last couple of years the Operating Margin of INMD has grown nicely.
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.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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.