Investors should take notice of NASDAQ:INMD—it offers a great deal for the fundamentals it presents.

Last update: Apr 1, 2024

Our stock screener has singled out INMODE LTD (NASDAQ:INMD) as a stellar value proposition. NASDAQ:INMD not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Unpacking NASDAQ:INMD's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:INMD scores a 8 out of 10:

The Price/Earnings ratio is 8.44, which indicates a very decent valuation of INMD.
98.47% of the companies in the same industry are more expensive than INMD, based on the Price/Earnings ratio.
INMD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.50.
With a Price/Forward Earnings ratio of 8.31, the valuation of INMD can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INMD indicates a rather cheap valuation: INMD is cheaper than 98.98% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.80. 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.
Based on the Price/Free Cash Flow ratio, INMD is valued cheaply inside the industry as 97.45% of the companies are valued more expensively.
The excellent profitability rating of INMD may justify a higher PE ratio.

Exploring NASDAQ:INMD's Profitability

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:

Looking at the Return On Assets, with a value of 22.92%, INMD belongs to the top of the industry, outperforming 98.98% of the companies in the same industry.
The Return On Equity of INMD (25.13%) is better than 96.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.97%, INMD belongs to the top of the industry, outperforming 98.47% of the companies in the same industry.
INMD had an Average Return On Invested Capital over the past 3 years of 28.25%. This 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.
INMD's Profit Margin of 40.21% is amongst the best of the industry. INMD outperforms 99.49% of its industry peers.
In the last couple of years the Profit Margin of INMD has grown nicely.
INMD has a better Operating Margin (39.76%) than 100.00% of its industry peers.
INMD's Operating Margin has improved in the last couple of years.
INMD has a Gross Margin of 83.59%. This is amongst the best in the industry. INMD outperforms 93.88% of its industry peers.

A Closer Look at Health for NASDAQ:INMD

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:INMD has received a 9 out of 10:

An Altman-Z score of 17.87 indicates that INMD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.87, INMD belongs to the top of the industry, outperforming 93.37% of the companies in the same industry.
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's Quick ratio of 12.48 is amongst the best of the industry. INMD outperforms 94.90% of its industry peers.

Growth Examination 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:

INMD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.76% yearly.
INMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.34%.
INMD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.48% yearly.

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

For an up to date full fundamental analysis you can check the fundamental report of INMD

Disclaimer

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.