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

Our stock screener has spotted INMODE LTD (NASDAQ:INMD) as an undervalued stock with solid fundamentals. NASDAQ:INMD shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Insights: NASDAQ:INMD

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:INMD was assigned a score of 8 for valuation:

• With a Price/Earnings ratio of 8.86, the valuation of INMD can be described as very reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 98.99% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.04. INMD is valued rather cheaply when compared to this.
• INMD is valuated reasonably with a Price/Forward Earnings ratio of 8.50.
• Based on the Price/Forward Earnings ratio, INMD is valued cheaper than 98.48% of the companies in the same industry.
• INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.95, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, INMD is valued cheaper than 97.98% of the companies in the same industry.
• INMD has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:INMD?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:INMD scores a 9 out of 10:

• INMD has a Return On Assets of 22.73%. This is amongst the best in the industry. INMD outperforms 98.48% of its industry peers.
• INMD has a better Return On Equity (24.93%) than 96.46% of its industry peers.
• INMD's Return On Invested Capital of 24.93% is amongst the best of the industry. INMD outperforms 98.99% 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 8.55%.
• 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 98.48% of its industry peers.
• In the last couple of years the Profit Margin of INMD has grown nicely.
• INMD has a Operating Margin of 40.95%. This is amongst the best in the industry. INMD outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of INMD has grown nicely.
• INMD has a better Gross Margin (83.66%) than 94.95% of its industry peers.

Understanding NASDAQ:INMD's Health Score

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:

• INMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 better Current ratio (12.51) than 92.93% of its industry peers.
• 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.
• Looking at the Quick ratio, with a value of 11.86, INMD belongs to the top of the industry, outperforming 93.43% of the companies in the same industry.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:INMD has received a 6 out of 10:

• The Earnings Per Share has grown by an nice 14.85% over the past year.
• Measured over the past years, INMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 70.81% on average per year.
• INMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.73%.
• 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 Revenue. In the coming years, the Revenue will grow by 9.81% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.