INSPIRE MEDICAL SYSTEMS INC (INSP)

US4577301090 - Common Stock

187.77  +2.35 (+1.27%)

Premarket: 180.45 -7.32 (-3.9%)

Fundamental Rating

6

INSP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While INSP has a great health rating, its profitability is only average at the moment. INSP is not overvalued while it is showing excellent growth. This is an interesting combination.



4

1. Profitability

1.1 Basic Checks

In the past year INSP was profitable.
In the past year INSP had a positive cash flow from operations.
INSP had negative earnings in each of the past 5 years.
In multiple years INSP reported negative operating cash flow during the last 5 years.

1.2 Ratios

INSP has a better Return On Assets (4.15%) than 79.14% of its industry peers.
Looking at the Return On Equity, with a value of 4.74%, INSP is in the better half of the industry, outperforming 75.94% 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.
Industry RankSector Rank
ROA 4.15%
ROE 4.74%
ROIC 1.48%
ROA(3y)-8.44%
ROA(5y)-12.79%
ROE(3y)-10.36%
ROE(5y)-15.95%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 4.37%, INSP is doing good in the industry, outperforming 75.40% of the companies in the same industry.
INSP has a Operating Margin of 1.79%. This is in the better half of the industry: INSP outperforms 67.38% of its industry peers.
INSP has a Gross Margin of 84.77%. This is amongst the best in the industry. INSP outperforms 96.26% of its industry peers.
INSP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.79%
PM (TTM) 4.37%
GM 84.77%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.08%
GM growth 5Y1.1%

8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INSP is destroying value.
Compared to 1 year ago, INSP has more shares outstanding
The number of shares outstanding for INSP has been increased compared to 5 years ago.
INSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 35.09 indicates that INSP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 35.09, INSP belongs to the best of the industry, outperforming 97.33% of the companies in the same industry.
INSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 35.09
ROIC/WACC0.16
WACC9.16%

2.3 Liquidity

A Current Ratio of 7.84 indicates that INSP has no problem at all paying its short term obligations.
INSP has a better Current ratio (7.84) than 89.30% of its industry peers.
INSP has a Quick Ratio of 6.94. This indicates that INSP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 6.94, INSP belongs to the top of the industry, outperforming 88.77% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 7.84
Quick Ratio 6.94

7

3. Growth

3.1 Past

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.
EPS 1Y (TTM)194.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%306.9%
Revenue 1Y (TTM)32.51%
Revenue growth 3Y75.59%
Revenue growth 5Y65.32%
Sales Q2Q%32.54%

3.2 Future

INSP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 56.27% yearly.
Based on estimates for the next years, INSP will show a quite strong growth in Revenue. The Revenue will grow by 19.49% on average per year.
EPS Next Y282.55%
EPS Next 2Y117.95%
EPS Next 3Y85.5%
EPS Next 5Y56.27%
Revenue Next Year28.5%
Revenue Next 2Y23.93%
Revenue Next 3Y21.88%
Revenue Next 5Y19.49%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 175.49, the valuation of INSP can be described as expensive.
Based on the Price/Earnings ratio, INSP is valued a bit cheaper than 64.17% of the companies in the same industry.
INSP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 92.26 indicates a quite expensive valuation of INSP.
Based on the Price/Forward Earnings ratio, INSP is valued a bit cheaper than 66.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INSP to the average of the S&P500 Index (23.73), we can say INSP is valued expensively.
Industry RankSector Rank
PE 175.49
Fwd PE 92.26

4.2 Price Multiples

63.10% of the companies in the same industry are more expensive than INSP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, INSP is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 147.3
EV/EBITDA 269.42

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INSP's earnings are expected to grow with 85.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y117.95%
EPS Next 3Y85.5%

0

5. Dividend

5.1 Amount

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

INSPIRE MEDICAL SYSTEMS INC

NYSE:INSP (12/20/2024, 8:18:37 PM)

Premarket: 180.45 -7.32 (-3.9%)

187.77

+2.35 (+1.27%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-04 2025-02-04/amc
Inst Owners110.22%
Inst Owner Change3.3%
Ins Owners1.74%
Ins Owner Change0.17%
Market Cap5.63B
Analysts79.2
Price Target246.33 (31.19%)
Short Float %6.8%
Short Ratio4.24
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)2
Avg EPS beat(2)503.17%
Min EPS beat(2)325.04%
Max EPS beat(2)681.29%
EPS beat(4)4
Avg EPS beat(4)424.38%
Min EPS beat(4)48.86%
Max EPS beat(4)681.29%
EPS beat(8)8
Avg EPS beat(8)239.56%
EPS beat(12)12
Avg EPS beat(12)171.69%
EPS beat(16)16
Avg EPS beat(16)136.26%
Revenue beat(2)2
Avg Revenue beat(2)1.09%
Min Revenue beat(2)0.81%
Max Revenue beat(2)1.36%
Revenue beat(4)3
Avg Revenue beat(4)0.64%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)1.36%
Revenue beat(8)6
Avg Revenue beat(8)2.28%
Revenue beat(12)10
Avg Revenue beat(12)4.38%
Revenue beat(16)14
Avg Revenue beat(16)6.05%
PT rev (1m)4.01%
PT rev (3m)7.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.68%
EPS NY rev (1m)0%
EPS NY rev (3m)78.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
Industry RankSector Rank
PE 175.49
Fwd PE 92.26
P/S 7.45
P/FCF 147.3
P/OCF 71.84
P/B 8.08
P/tB 8.08
EV/EBITDA 269.42
EPS(TTM)1.07
EY0.57%
EPS(NY)2.04
Fwd EY1.08%
FCF(TTM)1.27
FCFY0.68%
OCF(TTM)2.61
OCFY1.39%
SpS25.21
BVpS23.24
TBVpS23.24
PEG (NY)0.62
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.15%
ROE 4.74%
ROCE 1.87%
ROIC 1.48%
ROICexc 3.43%
ROICexgc 3.43%
OM 1.79%
PM (TTM) 4.37%
GM 84.77%
FCFM 5.06%
ROA(3y)-8.44%
ROA(5y)-12.79%
ROE(3y)-10.36%
ROE(5y)-15.95%
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 3Y-0.08%
GM growth 5Y1.1%
F-Score7
Asset Turnover0.95
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 820.89%
Cap/Sales 5.31%
Interest Coverage 250
Cash Conversion 426.07%
Profit Quality 115.6%
Current Ratio 7.84
Quick Ratio 6.94
Altman-Z 35.09
F-Score7
WACC9.16%
ROIC/WACC0.16
Cap/Depr(3y)567.43%
Cap/Depr(5y)508.63%
Cap/Sales(3y)2.67%
Cap/Sales(5y)2.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)194.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%306.9%
EPS Next Y282.55%
EPS Next 2Y117.95%
EPS Next 3Y85.5%
EPS Next 5Y56.27%
Revenue 1Y (TTM)32.51%
Revenue growth 3Y75.59%
Revenue growth 5Y65.32%
Sales Q2Q%32.54%
Revenue Next Year28.5%
Revenue Next 2Y23.93%
Revenue Next 3Y21.88%
Revenue Next 5Y19.49%
EBIT growth 1Y127.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.54%
EBIT Next 3Y58.93%
EBIT Next 5Y51.62%
FCF growth 1Y379.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1223.79%
OCF growth 3YN/A
OCF growth 5YN/A