NASDAQ:INMD is an undervalued gem with solid fundamentals.

Last update: Nov 2, 2023

Uncover the hidden value in INMODE LTD (NASDAQ:INMD) as our stock screening tool recommends it as an undervalued choice. NASDAQ:INMD maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

ChartMill's Evaluation of Valuation

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 7.87, the valuation of INMD can be described as very cheap.
Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 98.01% of the companies are valued more expensively.
INMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.21.
Based on the Price/Forward Earnings ratio of 7.03, the valuation of INMD can be described as very cheap.
INMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INMD to the average of the S&P500 Index (18.26), we can say INMD is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaper than 99.00% of the companies in the same industry.
INMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INMD is cheaper than 99.50% 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.
INMD has an outstanding profitability rating, which may justify a higher PE ratio.

Exploring NASDAQ:INMD's Profitability

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 98.51% of the companies in the same industry.
INMD's Return On Equity of 27.43% is amongst the best of the industry. INMD outperforms 98.51% of its industry peers.
The Return On Invested Capital of INMD (28.04%) is better than 99.50% 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 8.57%.
With an excellent Profit Margin value of 36.77%, INMD belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
In the last couple of years the Profit Margin of INMD has grown nicely.
The Operating Margin of INMD (42.59%) is better than 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 96.02% of the companies in the same industry.

Health Analysis for NASDAQ:INMD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:INMD, the assigned 8 for health provides valuable insights:

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.
Looking at the Current ratio, with a value of 11.84, INMD belongs to the top of the industry, outperforming 93.53% 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 Quick ratio of 11.21. This is amongst the best in the industry. INMD outperforms 93.03% of its industry peers.

Growth Assessment of NASDAQ:INMD

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.
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.
The Revenue has grown by 22.95% in the past year. This is a very strong growth!
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 11.73% yearly.
INMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.71% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.