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INSMED INC (INSM) Stock Fundamental Analysis

NASDAQ:INSM - Nasdaq - US4576693075 - Common Stock - Currency: USD

76.58  +0.29 (+0.38%)

After market: 76.58 0 (0%)

Fundamental Rating

3

Overall INSM gets a fundamental rating of 3 out of 10. We evaluated INSM against 572 industry peers in the Biotechnology industry. While INSM seems to be doing ok healthwise, there are quite some concerns on its profitability. INSM shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

INSM had negative earnings in the past year.
In the past year INSM has reported a negative cash flow from operations.
INSM had negative earnings in each of the past 5 years.
In the past 5 years INSM always reported negative operating cash flow.
INSM Yearly Net Income VS EBIT VS OCF VS FCFINSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 -200M -400M -600M

1.2 Ratios

INSM has a Return On Assets (-42.10%) which is in line with its industry peers.
With a Return On Equity value of -178.79%, INSM is not doing good in the industry: 67.43% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -42.1%
ROE -178.79%
ROIC N/A
ROA(3y)-40.13%
ROA(5y)-38.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
INSM Yearly ROA, ROE, ROICINSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200 -200 -400

1.3 Margins

INSM has a Gross Margin of 77.25%. This is amongst the best in the industry. INSM outperforms 85.84% of its industry peers.
In the last couple of years the Gross Margin of INSM has remained more or less at the same level.
INSM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 77.25%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y0.78%
INSM Yearly Profit, Operating, Gross MarginsINSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -1K -2K -3K

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4

2. Health

2.1 Basic Checks

INSM does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, INSM has more shares outstanding
INSM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INSM is higher compared to a year ago.
INSM Yearly Shares OutstandingINSM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
INSM Yearly Total Debt VS Total AssetsINSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

INSM has an Altman-Z score of 2.25. This is not the best score and indicates that INSM is in the grey zone with still only limited risk for bankruptcy at the moment.
INSM's Altman-Z score of 2.25 is fine compared to the rest of the industry. INSM outperforms 72.04% of its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that INSM has dependencies on debt financing.
INSM's Debt to Equity ratio of 2.03 is on the low side compared to the rest of the industry. INSM is outperformed by 82.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.03
Debt/FCF N/A
Altman-Z 2.25
ROIC/WACCN/A
WACC10.48%
INSM Yearly LT Debt VS Equity VS FCFINSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B

2.3 Liquidity

INSM has a Current Ratio of 6.37. This indicates that INSM is financially healthy and has no problem in meeting its short term obligations.
INSM's Current ratio of 6.37 is fine compared to the rest of the industry. INSM outperforms 63.89% of its industry peers.
INSM has a Quick Ratio of 5.99. This indicates that INSM is financially healthy and has no problem in meeting its short term obligations.
INSM has a Quick ratio of 5.99. This is in the better half of the industry: INSM outperforms 60.88% of its industry peers.
Industry RankSector Rank
Current Ratio 6.37
Quick Ratio 5.99
INSM Yearly Current Assets VS Current LiabilitesINSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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7

3. Growth

3.1 Past

The earnings per share for INSM have decreased by -5.31% in the last year.
Looking at the last year, INSM shows a very strong growth in Revenue. The Revenue has grown by 22.13%.
INSM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 98.92% yearly.
EPS 1Y (TTM)-5.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-14.41%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y22.9%
Revenue growth 5Y98.92%
Sales Q2Q%18.15%

3.2 Future

The Earnings Per Share is expected to grow by 21.48% on average over the next years. This is a very strong growth
Based on estimates for the next years, INSM will show a very strong growth in Revenue. The Revenue will grow by 60.99% on average per year.
EPS Next Y-3.45%
EPS Next 2Y8.4%
EPS Next 3Y15.35%
EPS Next 5Y21.48%
Revenue Next Year18.05%
Revenue Next 2Y30%
Revenue Next 3Y49.57%
Revenue Next 5Y60.99%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
INSM Yearly Revenue VS EstimatesINSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
INSM Yearly EPS VS EstimatesINSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10

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0

4. Valuation

4.1 Price/Earnings Ratio

INSM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for INSM. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
INSM Price Earnings VS Forward Price EarningsINSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
INSM Per share dataINSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

INSM's earnings are expected to grow with 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.4%
EPS Next 3Y15.35%

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0

5. Dividend

5.1 Amount

INSM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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INSMED INC

NASDAQ:INSM (1/31/2025, 8:00:02 PM)

After market: 76.58 0 (0%)

76.58

+0.29 (+0.38%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners111.23%
Inst Owner Change-0.06%
Ins Owners1.03%
Ins Owner Change-1.92%
Market Cap13.70B
Analysts85
Price Target91.19 (19.08%)
Short Float %8.74%
Short Ratio8.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.28%
Min EPS beat(2)-50.18%
Max EPS beat(2)-2.38%
EPS beat(4)1
Avg EPS beat(4)-11.62%
Min EPS beat(4)-50.18%
Max EPS beat(4)15.57%
EPS beat(8)2
Avg EPS beat(8)-14.29%
EPS beat(12)4
Avg EPS beat(12)-9.58%
EPS beat(16)5
Avg EPS beat(16)-9.97%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-4.81%
Max Revenue beat(4)0.7%
Revenue beat(8)2
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)0.45%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)0.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.54%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 39.95
P/FCF N/A
P/OCF N/A
P/B 28.34
P/tB 47.67
EV/EBITDA N/A
EPS(TTM)-5.55
EYN/A
EPS(NY)-4.41
Fwd EYN/A
FCF(TTM)-3.56
FCFYN/A
OCF(TTM)-3.46
OCFYN/A
SpS1.92
BVpS2.7
TBVpS1.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -42.1%
ROE -178.79%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 77.25%
FCFM N/A
ROA(3y)-40.13%
ROA(5y)-38.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y0.78%
F-Score4
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 2.03
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 126.11%
Cap/Sales 5.04%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 6.37
Quick Ratio 5.99
Altman-Z 2.25
F-Score4
WACC10.48%
ROIC/WACCN/A
Cap/Depr(3y)76.05%
Cap/Depr(5y)134.79%
Cap/Sales(3y)4.08%
Cap/Sales(5y)9.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-14.41%
EPS Next Y-3.45%
EPS Next 2Y8.4%
EPS Next 3Y15.35%
EPS Next 5Y21.48%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y22.9%
Revenue growth 5Y98.92%
Sales Q2Q%18.15%
Revenue Next Year18.05%
Revenue Next 2Y30%
Revenue Next 3Y49.57%
Revenue Next 5Y60.99%
EBIT growth 1Y-4.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-21.92%
EBIT Next 3Y9.1%
EBIT Next 5YN/A
FCF growth 1Y-64.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.21%
OCF growth 3YN/A
OCF growth 5YN/A