INSPIRE MEDICAL SYSTEMS INC (INSP) Stock Fundamental Analysis
NYSE:INSP - New York Stock Exchange, Inc. - US4577301090 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to INSP. INSP was compared to 189 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 priced too expensively while it is growing strongly. Keep and eye on this one! This makes INSP very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year INSP was profitable.
INSP had a positive operating cash flow in the past year.
In the past 5 years INSP reported 4 times negative net income.
In multiple years INSP reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.62%, INSP belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
The Return On Equity of INSP (7.76%) is better than 81.91% of its industry peers.
The Return On Invested Capital of INSP (4.59%) is better than 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 7.76% | ||
| ROIC | 4.59% |
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's Profit Margin of 6.67% is fine compared to the rest of the industry. INSP outperforms 78.72% of its industry peers.
Looking at the Operating Margin, with a value of 4.49%, INSP is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
Looking at the Gross Margin, with a value of 84.68%, INSP belongs to the top of the industry, outperforming 96.28% 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 | 4.49% | ||
| PM (TTM) | 6.67% | ||
| GM | 84.68% |
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.
The number of shares outstanding for INSP has been increased compared to 1 year ago.
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 28.04 indicates that INSP is not in any danger for bankruptcy at the moment.
INSP has a better Altman-Z score (28.04) than 97.34% 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 | 28.04 |
ROIC/WACC0.51
WACC9.06%
2.3 Liquidity
A Current Ratio of 7.13 indicates that INSP has no problem at all paying its short term obligations.
INSP has a Current ratio of 7.13. This is amongst the best in the industry. INSP outperforms 87.23% of its industry peers.
INSP has a Quick Ratio of 6.22. This indicates that INSP is financially healthy and has no problem in meeting its short term obligations.
INSP has a Quick ratio of 6.22. This is amongst the best in the industry. INSP outperforms 88.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.13 | ||
| Quick Ratio | 6.22 |
3. Growth
3.1 Past
INSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 333.78%, which is quite impressive.
The Revenue has grown by 28.49% in the past year. This is a very strong growth!
The Revenue has been growing by 57.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)333.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%134.69%
Revenue 1Y (TTM)28.49%
Revenue growth 3Y50.95%
Revenue growth 5Y57.78%
Sales Q2Q%24.52%
3.2 Future
Based on estimates for the next years, INSP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.33% on average per year.
The Revenue is expected to grow by 16.36% on average over the next years. This is quite good.
EPS Next Y27.77%
EPS Next 2Y37.26%
EPS Next 3Y39.49%
EPS Next 5Y32.33%
Revenue Next Year18.75%
Revenue Next 2Y18.12%
Revenue Next 3Y17.56%
Revenue Next 5Y16.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 102.50, INSP can be considered very expensive at the moment.
INSP's Price/Earnings ratio is a bit cheaper when compared to the industry. INSP is cheaper than 64.36% of the companies in the same industry.
INSP is valuated expensively when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 80.22, which means the current valuation is very expensive for INSP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INSP indicates a somewhat cheap valuation: INSP is cheaper than 67.02% of the companies listed in the same industry.
INSP is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.5 | ||
| Fwd PE | 80.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INSP is valued a bit cheaper than 63.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INSP indicates a somewhat cheap valuation: INSP is cheaper than 73.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.74 | ||
| EV/EBITDA | 106.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as INSP's earnings are expected to grow with 39.49% in the coming years.
PEG (NY)3.69
PEG (5Y)N/A
EPS Next 2Y37.26%
EPS Next 3Y39.49%
5. Dividend
5.1 Amount
INSP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
177.32
-1.07 (-0.6%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners112.86%
Inst Owner Change-92.72%
Ins Owners1.74%
Ins Owner Change0.56%
Market Cap5.26B
Analysts79.2
Price Target240.65 (35.72%)
Short Float %8.67%
Short Ratio4.58
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)367.68%
Min EPS beat(2)54.07%
Max EPS beat(2)681.29%
EPS beat(4)4
Avg EPS beat(4)277.32%
Min EPS beat(4)48.86%
Max EPS beat(4)681.29%
EPS beat(8)8
Avg EPS beat(8)231.66%
EPS beat(12)12
Avg EPS beat(12)169.55%
EPS beat(16)16
Avg EPS beat(16)136.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)0.81%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.84%
Max Revenue beat(4)1.36%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)9
Avg Revenue beat(12)4.28%
Revenue beat(16)13
Avg Revenue beat(16)5.39%
PT rev (1m)-2.43%
PT rev (3m)-1.51%
EPS NQ rev (1m)-127.3%
EPS NQ rev (3m)2.98%
EPS NY rev (1m)8.61%
EPS NY rev (3m)9.67%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.5 | ||
| Fwd PE | 80.22 | ||
| P/S | 6.55 | ||
| P/FCF | 57.74 | ||
| P/OCF | 40.39 | ||
| P/B | 7.63 | ||
| P/tB | 7.63 | ||
| EV/EBITDA | 106.02 |
EPS(TTM)1.73
EY0.98%
EPS(NY)2.21
Fwd EY1.25%
FCF(TTM)3.07
FCFY1.73%
OCF(TTM)4.39
OCFY2.48%
SpS27.06
BVpS23.25
TBVpS23.25
PEG (NY)3.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.62% | ||
| ROE | 7.76% | ||
| ROCE | 5.01% | ||
| ROIC | 4.59% | ||
| ROICexc | 12.04% | ||
| ROICexgc | 12.04% | ||
| OM | 4.49% | ||
| PM (TTM) | 6.67% | ||
| GM | 84.68% | ||
| FCFM | 11.35% |
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-Score8
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 597.3% | ||
| Cap/Sales | 4.87% | ||
| Interest Coverage | 1640.14 | ||
| Cash Conversion | 305.51% | ||
| Profit Quality | 170.3% | ||
| Current Ratio | 7.13 | ||
| Quick Ratio | 6.22 | ||
| Altman-Z | 28.04 |
F-Score8
WACC9.06%
ROIC/WACC0.51
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)333.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%134.69%
EPS Next Y27.77%
EPS Next 2Y37.26%
EPS Next 3Y39.49%
EPS Next 5Y32.33%
Revenue 1Y (TTM)28.49%
Revenue growth 3Y50.95%
Revenue growth 5Y57.78%
Sales Q2Q%24.52%
Revenue Next Year18.75%
Revenue Next 2Y18.12%
Revenue Next 3Y17.56%
Revenue Next 5Y16.36%
EBIT growth 1Y189.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year163.46%
EBIT Next 3Y126.56%
EBIT Next 5Y80.65%
FCF growth 1Y8798.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y428.32%
OCF growth 3YN/A
OCF growth 5YN/A