Applying Peter Lynch’s stock selection rules to INMODE LTD (NASDAQ:INMD)

Peter Lynch favored companies with strong earnings growth, reasonable valuations, and solid financials. In this analysis, we’ll determine if INMODE LTD (NASDAQ:INMD) qualifies as a true Lynch-style investment.

Checking the Peter Lynch growth stock criteria for INMODE LTD (NASDAQ:INMD)

• The Return on Equity(ROE) of INMD is 25.76%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a current Debt-to-Equity ratio at 0.0, INMD showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• Over the past 5 years, INMD has demonstrated 22.97 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio of 0.36, INMD is valued very reasonably for the growth it experiences.
• With a Current Ratio of 10.23, INMD shows a stable financial footing with enough assets to cover short-term debts.

A complete fundamental analysis of INMD

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

INMD gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making INMD a very profitable company, without any liquidiy or solvency issues. INMD may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make INMD a good candidate for value and quality investing.

Our latest full fundamental report of INMD contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.