NASDAQ:INMD, a growth stock which is not overvalued.

Last update: Nov 3, 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 employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:INMD has earned a 8 for growth:

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.
Looking at the last year, INMD shows a very strong growth in Revenue. 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!
The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
INMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.71% yearly.

Valuation Assessment of 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:

A Price/Earnings ratio of 8.12 indicates a reasonable valuation of INMD.
Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 98.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INMD to the average of the S&P500 Index (23.73), we can say INMD is valued rather cheaply.
The Price/Forward Earnings ratio is 7.25, which indicates a rather cheap valuation of INMD.
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.
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.
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.
The excellent profitability rating of INMD may justify a higher PE ratio.

Health Examination for NASDAQ:INMD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:INMD has received a 8 out of 10:

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.
With an excellent Quick ratio value of 11.21, INMD belongs to the best of the industry, outperforming 93.03% of the companies in the same industry.

Profitability Assessment of 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:

The Return On Assets of INMD (24.89%) is better than 98.51% of its industry peers.
INMD's Return On Equity of 27.43% is amongst the best of the industry. INMD outperforms 98.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.04%, INMD belongs to the top of the industry, outperforming 99.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INMD is significantly above the industry average of 8.57%.
The Profit Margin of INMD (36.77%) is better than 98.51% of its industry peers.
In the last couple of years the Profit Margin of INMD has grown nicely.
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.
In the last couple of years the Operating Margin of INMD has grown nicely.
INMD has a Gross Margin of 83.89%. This is amongst the best in the industry. INMD outperforms 96.02% of its industry peers.

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