INSPIRE MEDICAL SYSTEMS INC (INSP) Stock Fundamental Analysis
NYSE:INSP - New York Stock Exchange, Inc. - US4577301090 - Common Stock - Currency: USD
Taking everything into account, INSP scores 6 out of 10 in our fundamental rating. INSP was compared to 188 industry peers in the Health Care Equipment & Supplies industry. INSP has an excellent financial health rating, but there are some minor concerns on its profitability. INSP is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make INSP suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year INSP was profitable.
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
Looking at the Return On Assets, with a value of 9.10%, INSP belongs to the top of the industry, outperforming 92.02% of the companies in the same industry.
INSP has a better Return On Equity (10.46%) than 86.17% of its industry peers.
INSP has a Return On Invested Capital of 6.83%. This is amongst the best in the industry. INSP outperforms 82.45% 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
Looking at the Profit Margin, with a value of 7.92%, INSP belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
The Operating Margin of INSP (5.93%) is better than 72.34% of its industry peers.
With an excellent Gross Margin value of 84.65%, INSP belongs to the best of the industry, outperforming 95.21% 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
INSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
INSP has more shares outstanding than it did 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 26.97 indicates that INSP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 26.97, INSP belongs to the top of the industry, outperforming 96.28% of the companies in the same industry.
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 | 26.97 |
ROIC/WACC0.75
WACC9.15%
2.3 Liquidity
A Current Ratio of 9.01 indicates that INSP has no problem at all paying its short term obligations.
INSP has a Current ratio of 9.01. This is amongst the best in the industry. INSP outperforms 91.49% of its industry peers.
A Quick Ratio of 7.44 indicates that INSP has no problem at all paying its short term obligations.
The Quick ratio of INSP (7.44) is better than 89.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.01 | ||
| Quick Ratio | 7.44 |
3. Growth
3.1 Past
INSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 494.55%, which is quite impressive.
INSP shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.11%.
Measured over the past years, INSP shows a very strong growth in Revenue. The Revenue has been growing by 57.78% on average per year.
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
The Earnings Per Share is expected to grow by 33.18% on average over the next years. This is a very strong growth
INSP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.44% yearly.
EPS Next Y33.65%
EPS Next 2Y38.12%
EPS Next 3Y38.5%
EPS Next 5Y33.18%
Revenue Next Year18.72%
Revenue Next 2Y18.02%
Revenue Next 3Y17.47%
Revenue Next 5Y16.44%
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
INSP is valuated quite expensively with a Price/Earnings ratio of 62.68.
67.55% of the companies in the same industry are more expensive than INSP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.55, INSP is valued quite expensively.
Based on the Price/Forward Earnings ratio of 41.21, the valuation of INSP can be described as expensive.
67.02% of the companies in the same industry are more expensive than INSP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of INSP to the average of the S&P500 Index (22.30), we can say INSP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.68 | ||
| Fwd PE | 41.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INSP is valued a bit cheaper than 65.96% of the companies in the same industry.
74.47% of the companies in the same industry are more expensive than INSP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.87 | ||
| EV/EBITDA | 56.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INSP does not grow enough to justify the current Price/Earnings ratio.
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)1.86
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 |
136.02
+0.15 (+0.11%)
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 Change1.04%
Ins Owners1.74%
Ins Owner Change0.99%
Market Cap4.01B
Analysts79.23
Price Target221.04 (62.51%)
Short Float %11.5%
Short Ratio6.48
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)-0.37%
PT rev (3m)-8.15%
EPS NQ rev (1m)-32.79%
EPS NQ rev (3m)-49.05%
EPS NY rev (1m)4.6%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-5.96%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.68 | ||
| Fwd PE | 41.21 | ||
| P/S | 4.77 | ||
| P/FCF | 50.87 | ||
| P/OCF | 34.98 | ||
| P/B | 6.31 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 56.8 |
EPS(TTM)2.17
EY1.6%
EPS(NY)3.3
Fwd EY2.43%
FCF(TTM)2.67
FCFY1.97%
OCF(TTM)3.89
OCFY2.86%
SpS28.49
BVpS21.56
TBVpS21.56
PEG (NY)1.86
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 | 26.97 |
F-Score9
WACC9.15%
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 Year18.72%
Revenue Next 2Y18.02%
Revenue Next 3Y17.47%
Revenue Next 5Y16.44%
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