How does INMODE LTD (NASDAQ:INMD) stack up against Peter Lynch’s investment principles?

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether INMODE LTD (NASDAQ:INMD) fits the characteristics of a Lynch-approved investment.

Evaluating INMODE LTD (NASDAQ:INMD) using Peter Lynch’s legendary strategy

• The Return on Equity (ROE) of INMD stands at 28.38%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• A Debt/Equity ratio of 0.0 highlights INMD's commitment to maintaining financial stability.
• INMD has achieved 22.97 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• A PEG ratio of 0.36 positions INMD as a well-valued growth stock in today’s market.
• A Current Ratio of 8.73 suggests that INMD is in a solid financial position to handle short-term market fluctuations.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, INMD scores 7 out of 10 in our fundamental rating. INMD was compared to 189 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, INMD could be worth investigating further for value and quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of INMD

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.