IRADIMED CORP (IRMD) Stock Fundamental Analysis
NASDAQ:IRMD - Nasdaq - US46266A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to IRMD. IRMD was compared to 187 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making IRMD a very profitable company, without any liquidiy or solvency issues. IRMD has a correct valuation and a medium growth rate. These ratings would make IRMD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year IRMD was profitable.
IRMD had a positive operating cash flow in the past year.
In the past 5 years IRMD has always been profitable.
In the past 5 years IRMD always reported a positive cash flow from operatings.
1.2 Ratios
IRMD's Return On Assets of 19.45% is amongst the best of the industry. IRMD outperforms 97.86% of its industry peers.
IRMD has a better Return On Equity (21.97%) than 94.12% of its industry peers.
IRMD has a better Return On Invested Capital (19.22%) than 97.33% of its industry peers.
IRMD had an Average Return On Invested Capital over the past 3 years of 18.78%. This is significantly above the industry average of 8.14%.
The 3 year average ROIC (18.78%) for IRMD is below the current ROIC(19.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.45% | ||
| ROE | 21.97% | ||
| ROIC | 19.22% |
ROA(3y)17.74%
ROA(5y)13.28%
ROE(3y)21.21%
ROE(5y)15.76%
ROIC(3y)18.78%
ROIC(5y)N/A
1.3 Margins
IRMD has a Profit Margin of 26.33%. This is amongst the best in the industry. IRMD outperforms 95.72% of its industry peers.
In the last couple of years the Profit Margin of IRMD has remained more or less at the same level.
IRMD has a better Operating Margin (30.14%) than 98.40% of its industry peers.
In the last couple of years the Operating Margin of IRMD has grown nicely.
IRMD's Gross Margin of 76.91% is amongst the best of the industry. IRMD outperforms 89.30% of its industry peers.
IRMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.14% | ||
| PM (TTM) | 26.33% | ||
| GM | 76.91% |
OM growth 3Y8.49%
OM growth 5Y5.96%
PM growth 3Y5.58%
PM growth 5Y0.99%
GM growth 3Y0.12%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IRMD is creating value.
Compared to 1 year ago, IRMD has more shares outstanding
Compared to 5 years ago, IRMD has more shares outstanding
There is no outstanding debt for IRMD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
IRMD has an Altman-Z score of 49.29. This indicates that IRMD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IRMD (49.29) is better than 99.47% of its industry peers.
There is no outstanding debt for IRMD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 49.29 |
ROIC/WACC2.17
WACC8.87%
2.3 Liquidity
IRMD has a Current Ratio of 8.87. This indicates that IRMD is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 8.87, IRMD belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
IRMD has a Quick Ratio of 7.62. This indicates that IRMD is financially healthy and has no problem in meeting its short term obligations.
IRMD's Quick ratio of 7.62 is amongst the best of the industry. IRMD outperforms 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.87 | ||
| Quick Ratio | 7.62 |
3. Growth
3.1 Past
IRMD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.25%, which is quite good.
Measured over the past years, IRMD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.92% on average per year.
Looking at the last year, IRMD shows a quite strong growth in Revenue. The Revenue has grown by 11.71% in the last year.
Measured over the past years, IRMD shows a quite strong growth in Revenue. The Revenue has been growing by 13.71% on average per year.
EPS 1Y (TTM)11.25%
EPS 3Y25.74%
EPS 5Y13.92%
EPS Q2Q%16.67%
Revenue 1Y (TTM)11.71%
Revenue growth 3Y20.55%
Revenue growth 5Y13.71%
Sales Q2Q%13.84%
3.2 Future
Based on estimates for the next years, IRMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.91% on average per year.
IRMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.23% yearly.
EPS Next Y7.25%
EPS Next 2Y10.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.78%
Revenue Next 2Y9.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.71, which means the current valuation is very expensive for IRMD.
70.59% of the companies in the same industry are more expensive than IRMD, based on the Price/Earnings ratio.
IRMD is valuated rather expensively when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.83, IRMD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, IRMD is valued a bit cheaper than the industry average as 70.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.42. IRMD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.71 | ||
| Fwd PE | 34.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRMD is valued a bit cheaper than 69.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IRMD is valued a bit cheaper than 72.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.26 | ||
| EV/EBITDA | 36.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of IRMD may justify a higher PE ratio.
PEG (NY)5.47
PEG (5Y)2.85
EPS Next 2Y10.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, IRMD has a reasonable but not impressive dividend return.
IRMD's Dividend Yield is rather good when compared to the industry average which is at 1.91. IRMD pays more dividend than 93.58% of the companies in the same industry.
With a Dividend Yield of 1.03, IRMD pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
IRMD has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.74% of the earnings are spent on dividend by IRMD. This is a low number and sustainable payout ratio.
DP39.74%
EPS Next 2Y10.91%
EPS Next 3YN/A
70.69
+4.52 (+6.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners58.77%
Inst Owner Change-0.05%
Ins Owners36.8%
Ins Owner Change0.89%
Market Cap899.18M
Analysts82.5
Price Target72.42 (2.45%)
Short Float %2.83%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend1.08
Dividend Growth(5Y)N/A
DP39.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.77%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.43%
EPS beat(4)3
Avg EPS beat(4)5.2%
Min EPS beat(4)-1.96%
Max EPS beat(4)12.81%
EPS beat(8)6
Avg EPS beat(8)6.55%
EPS beat(12)10
Avg EPS beat(12)7.11%
EPS beat(16)14
Avg EPS beat(16)13.86%
Revenue beat(2)0
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-0.72%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)-0.41%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)4
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.78%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.71 | ||
| Fwd PE | 34.83 | ||
| P/S | 11.96 | ||
| P/FCF | 65.26 | ||
| P/OCF | 34.54 | ||
| P/B | 9.98 | ||
| P/tB | 10.36 | ||
| EV/EBITDA | 36.22 |
EPS(TTM)1.78
EY2.52%
EPS(NY)2.03
Fwd EY2.87%
FCF(TTM)1.08
FCFY1.53%
OCF(TTM)2.05
OCFY2.9%
SpS5.91
BVpS7.08
TBVpS6.82
PEG (NY)5.47
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.45% | ||
| ROE | 21.97% | ||
| ROCE | 24.29% | ||
| ROIC | 19.22% | ||
| ROICexc | 41.77% | ||
| ROICexgc | 45.2% | ||
| OM | 30.14% | ||
| PM (TTM) | 26.33% | ||
| GM | 76.91% | ||
| FCFM | 18.33% |
ROA(3y)17.74%
ROA(5y)13.28%
ROE(3y)21.21%
ROE(5y)15.76%
ROIC(3y)18.78%
ROIC(5y)N/A
ROICexc(3y)57.41%
ROICexc(5y)N/A
ROICexgc(3y)63.62%
ROICexgc(5y)N/A
ROCE(3y)23.73%
ROCE(5y)N/A
ROICexcg growth 3Y-6.9%
ROICexcg growth 5Y0.27%
ROICexc growth 3Y-6.89%
ROICexc growth 5Y-0.24%
OM growth 3Y8.49%
OM growth 5Y5.96%
PM growth 3Y5.58%
PM growth 5Y0.99%
GM growth 3Y0.12%
GM growth 5Y-0.04%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1559.79% | ||
| Cap/Sales | 16.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.09% | ||
| Profit Quality | 69.64% | ||
| Current Ratio | 8.87 | ||
| Quick Ratio | 7.62 | ||
| Altman-Z | 49.29 |
F-Score5
WACC8.87%
ROIC/WACC2.17
Cap/Depr(3y)801.75%
Cap/Depr(5y)501.1%
Cap/Sales(3y)9.26%
Cap/Sales(5y)6.31%
Profit Quality(3y)60.91%
Profit Quality(5y)134.72%
High Growth Momentum
Growth
EPS 1Y (TTM)11.25%
EPS 3Y25.74%
EPS 5Y13.92%
EPS Q2Q%16.67%
EPS Next Y7.25%
EPS Next 2Y10.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.71%
Revenue growth 3Y20.55%
Revenue growth 5Y13.71%
Sales Q2Q%13.84%
Revenue Next Year8.78%
Revenue Next 2Y9.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9%
EBIT growth 3Y30.78%
EBIT growth 5Y20.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y162.94%
FCF growth 3Y16.9%
FCF growth 5Y11.53%
OCF growth 1Y96.33%
OCF growth 3Y31.53%
OCF growth 5Y20.16%