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

Last update: Jan 5, 2024

INMODE LTD (NASDAQ:INMD) has caught the attention of our stock screener as a great value stock. NASDAQ:INMD excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Understanding NASDAQ:INMD's Valuation Score

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:

With a Price/Earnings ratio of 7.99, the valuation of INMD can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 99.50% of the companies listed in the same industry.
INMD is valuated cheaply when we compare the Price/Earnings ratio to 25.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.66, the valuation of INMD can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 99.50% of the companies listed in the same industry.
INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.53, which is the current average of the S&P500 Index.
99.50% of the companies in the same industry are more expensive than INMD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaper than 98.01% of the companies in the same industry.
INMD has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

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:

INMD has a Return On Assets of 22.73%. This is amongst the best in the industry. INMD outperforms 98.51% of its industry peers.
Looking at the Return On Equity, with a value of 24.93%, INMD belongs to the top of the industry, outperforming 96.52% of the companies in the same industry.
The Return On Invested Capital of INMD (24.93%) is better than 99.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INMD is significantly above the industry average of 8.52%.
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.
INMD has a Profit Margin of 36.16%. This is amongst the best in the industry. INMD outperforms 98.51% of its industry peers.
In the last couple of years the Profit Margin of INMD has grown nicely.
Looking at the Operating Margin, with a value of 40.95%, INMD belongs to the top 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.
The Gross Margin of INMD (83.66%) is better than 95.02% of its industry peers.

Deciphering NASDAQ:INMD's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:INMD has earned 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.
With an excellent Current ratio value of 12.51, INMD belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
INMD has a Quick Ratio of 11.86. This indicates that INMD is financially healthy and has no problem in meeting its short term obligations.
INMD has a better Quick ratio (11.86) than 93.03% of its industry peers.

Unpacking NASDAQ:INMD's Growth Rating

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 6 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 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 Revenue. In the coming years, the Revenue will grow by 9.81% yearly.

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