INSMED INC (INSM)

US4576693075 - Common Stock

70.44  +1.03 (+1.48%)

After market: 70.44 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to INSM. INSM was compared to 568 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.



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1

1. Profitability

1.1 Basic Checks

In the past year INSM has reported negative net income.
INSM had a negative operating cash flow in the past year.
INSM had negative earnings in each of the past 5 years.
In the past 5 years INSM always reported negative operating cash flow.

1.2 Ratios

INSM has a Return On Assets (-42.10%) which is in line with its industry peers.
INSM has a Return On Equity of -178.79%. This is in the lower half of the industry: INSM underperforms 66.90% of its industry peers.
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

1.3 Margins

INSM has a better Gross Margin (77.25%) than 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%

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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.
INSM has more shares outstanding than it did 1 year ago.
INSM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INSM is higher compared to a year ago.

2.2 Solvency

INSM has an Altman-Z score of 1.85. 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.
The Altman-Z score of INSM (1.85) is better than 70.09% of its industry peers.
INSM has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
INSM has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: INSM underperforms 81.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.03
Debt/FCF N/A
Altman-Z 1.85
ROIC/WACCN/A
WACC11.6%

2.3 Liquidity

A Current Ratio of 6.37 indicates that INSM has no problem at all paying its short term obligations.
INSM has a better Current ratio (6.37) than 64.07% 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 better Quick ratio (5.99) than 61.06% of its industry peers.
Industry RankSector Rank
Current Ratio 6.37
Quick Ratio 5.99

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7

3. Growth

3.1 Past

INSM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.31%.
INSM shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.13%.
Measured over the past years, INSM shows a very strong growth in Revenue. The Revenue has been growing by 98.92% on average per year.
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

INSM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.48% yearly.
The Revenue is expected to grow by 60.99% on average over the next years. This is a very strong growth
EPS Next Y-3.45%
EPS Next 2Y8.4%
EPS Next 3Y15.35%
EPS Next 5Y21.48%
Revenue Next Year17.51%
Revenue Next 2Y28.91%
Revenue Next 3Y50.96%
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.

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for INSM. In the last year negative earnings were reported.
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

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

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

No dividends for INSM!.
Industry RankSector Rank
Dividend Yield N/A

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INSMED INC

NASDAQ:INSM (12/20/2024, 8:18:37 PM)

After market: 70.44 0 (0%)

70.44

+1.03 (+1.48%)

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 Change8.86%
Ins Owners1.03%
Ins Owner Change-1.48%
Market Cap12.60B
Analysts85
Price Target91.19 (29.46%)
Short Float %7.14%
Short Ratio8.57
Dividend
Industry RankSector Rank
Dividend Yield N/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)0.8%
PT rev (3m)0.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.75%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-3.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 36.74
P/FCF N/A
P/OCF N/A
P/B 26.07
P/tB 43.85
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 1.85
F-Score4
WACC11.6%
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 Year17.51%
Revenue Next 2Y28.91%
Revenue Next 3Y50.96%
Revenue Next 5Y60.99%
EBIT growth 1Y-4.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-22.44%
EBIT Next 3Y14.18%
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