For those who appreciate value investing, NASDAQ:INMD is a compelling option with its solid fundamentals.

Last update: Dec 15, 2023

INMODE LTD (NASDAQ:INMD) was identified as a decent value stock by our stock screener. NASDAQ:INMD scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Assessment of NASDAQ:INMD

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:INMD has earned a 8 for valuation:

With a Price/Earnings ratio of 8.78, the valuation of INMD can be described as very reasonable.
INMD's Price/Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 99.01% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.64. INMD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.42 indicates a reasonable valuation of INMD.
Based on the Price/Forward Earnings ratio, INMD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.21. INMD is valued rather cheaply when compared to this.
INMD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INMD is cheaper than 98.51% 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 98.02% of the companies in the same industry.
The excellent profitability rating of INMD may justify a higher PE ratio.

Profitability Insights: NASDAQ:INMD

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'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 Return On Equity of 24.93%. This is amongst the best in the industry. INMD outperforms 97.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.93%, INMD belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
INMD had an Average Return On Invested Capital over the past 3 years of 30.45%. This is significantly above the industry average of 8.43%.
The 3 year average ROIC (30.45%) for INMD is well above the current ROIC(24.93%). The reason for the recent decline needs to be investigated.
Looking at the Profit Margin, with a value of 36.16%, 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.
The Operating Margin of INMD (40.95%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of INMD has grown nicely.
Looking at the Gross Margin, with a value of 83.66%, INMD belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.

Understanding NASDAQ:INMD's Health

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.
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.
With an excellent Current ratio value of 12.51, INMD belongs to the best 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 Quick ratio of 11.86. This is amongst the best in the industry. INMD outperforms 93.07% of its industry peers.

Unpacking NASDAQ:INMD's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:INMD, the assigned 6 reflects its growth potential:

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.
The Earnings Per Share has been growing by 70.81% on average over the past years. This is a very strong growth
The Revenue has grown by 15.73% in the past year. This is quite good.
The Revenue has been growing by 53.39% on average over the past years. This is a very strong growth!
Based on estimates for the next years, INMD will show a quite strong growth in Revenue. The Revenue will grow by 9.81% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

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

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.