INSPIRE MEDICAL SYSTEMS INC (INSP) Stock Fundamental Analysis
NYSE:INSP - New York Stock Exchange, Inc. - US4577301090 - Common Stock - Currency: USD
Overall INSP gets a fundamental rating of 6 out of 10. We evaluated INSP against 187 industry peers in the Health Care Equipment & Supplies industry. INSP is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. INSP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make INSP a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
INSP had positive earnings in the past year.
In the past year INSP had a positive cash flow from operations.
In the past 5 years INSP reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: INSP reported negative operating cash flow in multiple years.
1.2 Ratios
INSP has a Return On Assets of 9.10%. This is amongst the best in the industry. INSP outperforms 91.98% of its industry peers.
INSP has a better Return On Equity (10.46%) than 86.10% of its industry peers.
INSP has a better Return On Invested Capital (6.83%) than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 10.46% | ||
| ROIC | 6.83% |
ROA(3y)-1.48%
ROA(5y)-7.81%
ROE(3y)-1.66%
ROE(5y)-9.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
INSP has a Profit Margin of 7.92%. This is amongst the best in the industry. INSP outperforms 81.28% of its industry peers.
The Operating Margin of INSP (5.93%) is better than 72.19% of its industry peers.
With an excellent Gross Margin value of 84.65%, INSP belongs to the best of the industry, outperforming 95.19% of the companies in the same industry.
In the last couple of years the Gross Margin of INSP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.93% | ||
| PM (TTM) | 7.92% | ||
| GM | 84.65% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.41%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INSP is destroying value.
INSP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, INSP has more shares outstanding
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 25.90 indicates that INSP is not in any danger for bankruptcy at the moment.
INSP has a better Altman-Z score (25.90) than 96.79% of its industry peers.
INSP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 25.9 |
ROIC/WACC0.75
WACC9.07%
2.3 Liquidity
INSP has a Current Ratio of 9.01. This indicates that INSP is financially healthy and has no problem in meeting its short term obligations.
INSP's Current ratio of 9.01 is amongst the best of the industry. INSP outperforms 91.44% of its industry peers.
INSP has a Quick Ratio of 7.44. This indicates that INSP is financially healthy and has no problem in meeting its short term obligations.
INSP has a better Quick ratio (7.44) than 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.01 | ||
| Quick Ratio | 7.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 494.55% over the past year.
Looking at the last year, INSP shows a very strong growth in Revenue. The Revenue has grown by 27.11%.
INSP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 57.78% yearly.
EPS 1Y (TTM)494.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.41%
Revenue 1Y (TTM)27.11%
Revenue growth 3Y50.95%
Revenue growth 5Y57.78%
Sales Q2Q%22.75%
3.2 Future
INSP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.18% yearly.
Based on estimates for the next years, INSP will show a quite strong growth in Revenue. The Revenue will grow by 15.93% on average per year.
EPS Next Y33.65%
EPS Next 2Y38.12%
EPS Next 3Y38.5%
EPS Next 5Y33.18%
Revenue Next Year18.73%
Revenue Next 2Y18.02%
Revenue Next 3Y17.47%
Revenue Next 5Y15.93%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 58.99, which means the current valuation is very expensive for INSP.
Based on the Price/Earnings ratio, INSP is valued a bit cheaper than the industry average as 67.91% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.51. INSP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 38.78 indicates a quite expensive valuation of INSP.
Based on the Price/Forward Earnings ratio, INSP is valued a bit cheaper than 68.98% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. INSP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.99 | ||
| Fwd PE | 38.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INSP is valued a bit cheaper than 66.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INSP is valued a bit cheaper than the industry average as 75.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.87 | ||
| EV/EBITDA | 53.9 |
4.3 Compensation for Growth
INSP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of INSP may justify a higher PE ratio.
A more expensive valuation may be justified as INSP's earnings are expected to grow with 38.50% in the coming years.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y38.12%
EPS Next 3Y38.5%
5. Dividend
5.1 Amount
INSP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128
-2.26 (-1.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners114.63%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change0.99%
Market Cap3.77B
Analysts79.23
Price Target221.04 (72.69%)
Short Float %11.81%
Short Ratio5.67
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)96.78%
Min EPS beat(2)54.07%
Max EPS beat(2)139.49%
EPS beat(4)4
Avg EPS beat(4)299.97%
Min EPS beat(4)54.07%
Max EPS beat(4)681.29%
EPS beat(8)8
Avg EPS beat(8)246.43%
EPS beat(12)12
Avg EPS beat(12)179.1%
EPS beat(16)16
Avg EPS beat(16)144.99%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)1.13%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)1.36%
Revenue beat(8)5
Avg Revenue beat(8)1.1%
Revenue beat(12)9
Avg Revenue beat(12)3.88%
Revenue beat(16)13
Avg Revenue beat(16)5.01%
PT rev (1m)0%
PT rev (3m)-8.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.05%
EPS NY rev (1m)0%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.95%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.99 | ||
| Fwd PE | 38.78 | ||
| P/S | 4.49 | ||
| P/FCF | 47.87 | ||
| P/OCF | 32.91 | ||
| P/B | 5.94 | ||
| P/tB | 5.94 | ||
| EV/EBITDA | 53.9 |
EPS(TTM)2.17
EY1.7%
EPS(NY)3.3
Fwd EY2.58%
FCF(TTM)2.67
FCFY2.09%
OCF(TTM)3.89
OCFY3.04%
SpS28.49
BVpS21.56
TBVpS21.56
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.1% | ||
| ROE | 10.46% | ||
| ROCE | 7.46% | ||
| ROIC | 6.83% | ||
| ROICexc | 15.3% | ||
| ROICexgc | 15.3% | ||
| OM | 5.93% | ||
| PM (TTM) | 7.92% | ||
| GM | 84.65% | ||
| FCFM | 9.39% |
ROA(3y)-1.48%
ROA(5y)-7.81%
ROE(3y)-1.66%
ROE(5y)-9.65%
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-0.41%
GM growth 5Y0.33%
F-Score9
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 409.3% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 195.8% | ||
| Profit Quality | 118.56% | ||
| Current Ratio | 9.01 | ||
| Quick Ratio | 7.44 | ||
| Altman-Z | 25.9 |
F-Score9
WACC9.07%
ROIC/WACC0.75
Cap/Depr(3y)638.93%
Cap/Depr(5y)518.49%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)494.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.41%
EPS Next Y33.65%
EPS Next 2Y38.12%
EPS Next 3Y38.5%
EPS Next 5Y33.18%
Revenue 1Y (TTM)27.11%
Revenue growth 3Y50.95%
Revenue growth 5Y57.78%
Sales Q2Q%22.75%
Revenue Next Year18.73%
Revenue Next 2Y18.02%
Revenue Next 3Y17.47%
Revenue Next 5Y15.93%
EBIT growth 1Y238.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year762.55%
EBIT Next 3Y130.52%
EBIT Next 5Y84.08%
FCF growth 1Y594.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y399.06%
OCF growth 3YN/A
OCF growth 5YN/A