INSPIRE MEDICAL SYSTEMS INC (NYSE:INSP) - A Promising Affordable Growth Stock

INSPIRE MEDICAL SYSTEMS INC (NYSE:INSP) was identified as an affordable growth candidate by our stock screener. The company, which specializes in innovative sleep apnea treatments, shows strong growth potential while maintaining reasonable valuation metrics. Its financial health is solid, and profitability, though not exceptional, supports its growth trajectory.

Growth Prospects

• Revenue grew 27.11% over the past year, with a 5-year annualized growth rate of 57.78%.
• Earnings per share surged 494.55% in the last year, reflecting strong operational improvements.
• Analysts expect future EPS growth of 33.18% annually, supported by steady revenue expansion.

Valuation Assessment

• The stock trades at a P/E ratio of 60.03, which is high in absolute terms but below 67.91% of industry peers.
• Forward P/E of 39.47 suggests a more reasonable outlook compared to the sector average.
• The PEG ratio, accounting for growth, indicates a fair valuation given earnings expectations.

Financial Health & Profitability

• No debt and high liquidity ratios (Current Ratio: 9.01, Quick Ratio: 7.44) ensure financial stability.
• Gross margin of 84.65% ranks in the top 5% of the industry, though operating margins remain moderate.
• Return on equity (10.46%) and return on assets (9.10%) are competitive within the sector.

For a deeper look, review the full fundamental analysis of INSP.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.