When you look at NASDAQ:INMD, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Feb 16, 2024

Discover INMODE LTD (NASDAQ:INMD)—an undervalued stock our stock screener has picked out. NASDAQ:INMD demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

How do we evaluate the Valuation for 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 9 for valuation:

INMD is valuated reasonably with a Price/Earnings ratio of 9.04.
Based on the Price/Earnings ratio, INMD is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
INMD is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.67 indicates a reasonable valuation of INMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 98.99% of the companies listed in the same industry.
INMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.62, 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 98.99% of the companies are valued more expensively.
INMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INMD is cheaper than 97.98% of the companies in the same industry.
INMD's 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.

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 98.48% of its industry peers.
INMD has a Return On Equity of 24.93%. This is amongst the best in the industry. INMD outperforms 95.96% 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 98.99% 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 98.48% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 83.66%, INMD belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.

Health Analysis for NASDAQ:INMD

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 7 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.
A Current Ratio of 12.51 indicates that INMD has no problem at all paying 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.
INMD's Quick ratio of 11.86 is amongst the best of the industry. INMD outperforms 93.43% of its industry peers.

Growth Assessment of 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 6 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.
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.
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!

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.