In the world of growth stocks, NYSE:INSP shines as a value proposition.

Last update: Nov 13, 2024

Consider INSPIRE MEDICAL SYSTEMS INC (NYSE:INSP) as an affordable growth stock, identified by our stock screening tool. NYSE:INSP is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: NYSE:INSP

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:INSP scores a 8 out of 10:

INSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 194.69%, which is quite impressive.
INSP shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.51%.
INSP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.32% yearly.
The Earnings Per Share is expected to grow by 54.65% on average over the next years. This is a very strong growth
INSP is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.52% yearly.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:INSP boasts a 5 out of 10:

64.17% of the companies in the same industry are more expensive than INSP, based on the Price/Earnings ratio.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INSP indicates a somewhat cheap valuation: INSP is cheaper than 65.78% of the companies listed in the same industry.
Based on the Enterprise Value to EBITDA ratio, INSP is valued a bit cheaper than 63.64% of the companies in the same industry.
68.45% of the companies in the same industry are more expensive than INSP, based on the Price/Free Cash Flow ratio.
INSP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as INSP's earnings are expected to grow with 84.95% in the coming years.

Understanding NYSE:INSP's Health Score

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 NYSE:INSP, the assigned 8 for health provides valuable insights:

INSP has an Altman-Z score of 37.66. This indicates that INSP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 37.66, INSP belongs to the best of the industry, outperforming 98.40% of the companies in the same industry.
There is no outstanding debt for INSP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
INSP has a Current Ratio of 7.84. This indicates that INSP is financially healthy and has no problem in meeting its short term obligations.
INSP has a Current ratio of 7.84. This is amongst the best in the industry. INSP outperforms 86.10% of its industry peers.
A Quick Ratio of 6.94 indicates that INSP has no problem at all paying its short term obligations.
The Quick ratio of INSP (6.94) is better than 86.10% of its industry peers.

How do we evaluate the Profitability for NYSE:INSP?

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. NYSE:INSP was assigned a score of 5 for profitability:

Looking at the Return On Assets, with a value of 4.15%, INSP belongs to the top of the industry, outperforming 80.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.74%, INSP is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
The Return On Invested Capital of INSP (1.48%) is better than 70.05% of its industry peers.
INSP's Profit Margin of 4.37% is fine compared to the rest of the industry. INSP outperforms 75.94% of its industry peers.
INSP has a better Operating Margin (1.79%) than 67.38% of its industry peers.
INSP has a Gross Margin of 84.77%. This is amongst the best in the industry. INSP outperforms 95.72% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.