Exploring the Growth Potential of NASDAQ:INMD as It Nears a Breakout.

Last update: Dec 6, 2023

In this article we will dive into INMODE LTD (NASDAQ:INMD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed INMODE LTD showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Analysis for NASDAQ:INMD

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:INMD boasts a 8 out of 10:

INMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.85%, which is quite good.
INMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.81% yearly.
Looking at the last year, INMD shows a quite strong growth in Revenue. The Revenue has grown by 15.73% 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.
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.

Evaluating Health: 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 12.51. 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 12.51, INMD belongs to the top of the industry, outperforming 92.57% of the companies in the same industry.
A Quick Ratio of 11.86 indicates that INMD has no problem at all paying its short term obligations.
INMD has a better Quick ratio (11.86) than 93.07% of its industry peers.

Evaluating Profitability: NASDAQ:INMD

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:

INMD's Return On Assets of 22.73% is amongst the best of the industry. INMD outperforms 98.51% of its industry peers.
INMD has a better Return On Equity (24.93%) than 97.03% of its industry peers.
INMD has a Return On Invested Capital of 24.93%. 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 8.48%.
The last Return On Invested Capital (24.93%) for INMD is well below the 3 year average (30.45%), which needs to be investigated, but indicates that INMD had better years and this may not be a problem.
INMD has a better Profit Margin (36.16%) than 98.51% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
INMD has a better Operating Margin (40.95%) than 100.00% of its industry peers.
INMD's Operating Margin has improved in the last couple of years.
INMD's Gross Margin of 83.66% is amongst the best of the industry. INMD outperforms 95.05% of its industry peers.

Why is NASDAQ:INMD a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:INMD is 7:

INMD has a poor technical rating and the quality of the setup is also not perfect at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

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

Check the latest full technical report of INMD for a complete technical analysis.

Keep in mind

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.