NASDAQ:INMD appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 24, 2023

Consider INMODE LTD (NASDAQ:INMD) as a top value stock, identified by our stock screening tool. NASDAQ:INMD shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NASDAQ:INMD

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:INMD has achieved a 9 out of 10:

The Price/Earnings ratio is 8.82, which indicates a very decent valuation of INMD.
Based on the Price/Earnings ratio, INMD is valued cheaper than 99.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.54, INMD is valued rather cheaply.
INMD is valuated cheaply with a Price/Forward Earnings ratio of 7.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 100.00% 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 (19.58), we can say INMD is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaply inside the industry as 99.01% of the companies are valued more expensively.
98.02% of the companies in the same industry are more expensive than INMD, based on the Price/Free Cash Flow ratio.
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.

Looking at the Profitability

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:

INMD has a Return On Assets of 22.74%. This is amongst the best in the industry. INMD outperforms 98.51% of its industry peers.
INMD has a better Return On Equity (24.94%) than 97.03% of its industry peers.
INMD has a Return On Invested Capital of 24.92%. This is amongst the best in the industry. INMD outperforms 98.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INMD is significantly above the industry average of 8.40%.
The 3 year average ROIC (30.44%) for INMD is well above the current ROIC(24.92%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 36.18%, INMD belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
INMD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 40.96%, 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 83.67%, INMD belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.

Deciphering NASDAQ:INMD's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:INMD was assigned a score of 8 for health:

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.
A Current Ratio of 12.51 indicates that INMD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 12.51, INMD belongs to the best of the industry, outperforming 93.07% of the companies in the same industry.
A Quick Ratio of 11.87 indicates that INMD has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 11.87, INMD belongs to the top of the industry, outperforming 93.56% of the companies in the same industry.

Understanding NASDAQ:INMD's Growth Score

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:INMD has achieved a 8 out of 10:

The Earnings Per Share has grown by an nice 14.85% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.68%.
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.
The Revenue is expected to grow by 14.71% 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 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.