NASDAQ:INMD is an undervalued gem with solid fundamentals.

Last update: Mar 8, 2024

Our stock screening tool has identified INMODE LTD (NASDAQ:INMD) as an undervalued gem with strong fundamentals. NASDAQ:INMD boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Deciphering NASDAQ:INMD's Valuation Rating

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:

The Price/Earnings ratio is 8.86, which indicates a very decent valuation of INMD.
INMD's Price/Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 98.47% of the companies in the same industry.
INMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 8.27, which indicates a very decent valuation of INMD.
INMD's Price/Forward Earnings ratio is rather cheap when compared to the industry. INMD is cheaper than 98.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.06. INMD is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, INMD is valued cheaper than 98.98% 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 96.94% of the companies in the same industry.
The excellent profitability rating of INMD may justify a higher PE ratio.

What does the Profitability looks like for 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:

With an excellent Return On Assets value of 22.92%, INMD belongs to the best of the industry, outperforming 98.98% of the companies in the same industry.
INMD has a Return On Equity of 25.13%. This is amongst the best in the industry. INMD outperforms 96.43% of its industry peers.
INMD's Return On Invested Capital of 20.97% is amongst the best of the industry. INMD outperforms 98.47% 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 8.51%.
The last Return On Invested Capital (20.97%) for INMD is well below the 3 year average (28.25%), which needs to be investigated, but indicates that INMD had better years and this may not be a problem.
The Profit Margin of INMD (40.21%) is better than 99.49% of its industry peers.
INMD's Profit Margin has improved in the last couple of years.
INMD has a better Operating Margin (39.76%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of INMD has grown nicely.
INMD has a Gross Margin of 83.59%. This is amongst the best in the industry. INMD outperforms 93.88% of its industry peers.

Health Examination for 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 9 for health provides valuable insights:

INMD has an Altman-Z score of 18.58. This indicates that INMD is financially healthy and has little risk of bankruptcy at the moment.
INMD has a better Altman-Z score (18.58) than 93.37% of its industry peers.
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 13.18. This indicates that INMD is financially healthy and has no problem in meeting its short term obligations.
INMD's Current ratio of 13.18 is amongst the best of the industry. INMD outperforms 94.90% of its industry peers.
A Quick Ratio of 12.48 indicates that INMD has no problem at all paying its short term obligations.
INMD has a better Quick ratio (12.48) than 94.39% of its industry peers.

A Closer Look at Growth for NASDAQ:INMD

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 5 reflects its growth potential:

Measured over the past years, INMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.76% on average per year.
Looking at the last year, INMD shows a quite strong growth in Revenue. The Revenue has grown by 8.34% in the last year.
INMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.48% yearly.

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

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

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.