Investors should take note of NASDAQ:INMD, a growth stock that remains attractively priced.

Last update: Nov 24, 2023

Consider INMODE LTD (NASDAQ:INMD) as an affordable growth stock, identified by our stock screening tool. NASDAQ:INMD is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: NASDAQ:INMD

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.
Looking at the last year, INMD shows a quite strong growth in Revenue. The Revenue has grown by 15.68% in the last year.
Measured over the past years, INMD shows a very strong growth in Revenue. The Revenue has been growing by 53.39% on average per year.
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.

Assessing Valuation for NASDAQ:INMD

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:INMD, the assigned 9 reflects its valuation:

Based on the Price/Earnings ratio of 8.82, the valuation of INMD can be described as reasonable.
Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 99.01% 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 24.54.
With a Price/Forward Earnings ratio of 7.73, the valuation of INMD can be described as very cheap.
Based on the Price/Forward Earnings ratio, INMD is valued cheaper than 100.00% of the companies in the same industry.
INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.58, which is the current average of the S&P500 Index.
INMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INMD is cheaper than 99.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaply inside the industry as 98.02% of the companies are valued more expensively.
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.

A Closer Look at Health for NASDAQ:INMD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:INMD scores 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 12.51. This indicates that INMD is financially healthy and has no problem in meeting its short term obligations.
INMD has a Current ratio of 12.51. This is amongst the best in the industry. INMD outperforms 93.07% of its industry peers.
INMD has a Quick Ratio of 11.87. This indicates that INMD is financially healthy and has no problem in meeting its short term obligations.
INMD has a Quick ratio of 11.87. This is amongst the best in the industry. INMD outperforms 93.56% of its industry peers.

Exploring NASDAQ:INMD's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:INMD was assigned a score of 9 for profitability:

Looking at the Return On Assets, with a value of 22.74%, INMD belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
INMD has a better Return On Equity (24.94%) than 97.03% of its industry peers.
The Return On Invested Capital of INMD (24.92%) is better than 98.51% of its industry peers.
INMD had an Average Return On Invested Capital over the past 3 years of 30.44%. This 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.
In the last couple of years the Profit Margin of INMD has grown nicely.
INMD has a better Operating Margin (40.96%) than 100.00% of its industry peers.
INMD's Operating Margin has improved in the last couple of years.
INMD has a Gross Margin of 83.67%. This is amongst the best in the industry. INMD outperforms 95.54% of its industry peers.

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

Keep in mind

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.