Inspire Medical Systems, Inc.
Inspire Medical Systems, Inc. Fundamental Analysis
Inspire Medical Systems, Inc. (INSP) shows strong financial fundamentals with a PE ratio of 11.94, profit margin of 15.95%, and ROE of 21.07%. The company generates $0.9B in annual revenue with strong year-over-year growth of 28.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze INSP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINSP demonstrates superior asset utilization.
Valuation Score
ExcellentINSP trades at attractive valuation levels.
Growth Score
ModerateINSP shows steady but slowing expansion.
Financial Health Score
ExcellentINSP maintains a strong and stable balance sheet.
Profitability Score
ExcellentINSP achieves industry-leading margins.
Key Financial Metrics
Is INSP Expensive or Cheap?
P/E Ratio
INSP trades at 11.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INSP's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Inspire Medical Systems, Inc. at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 26.01 times EBITDA. This signals the market has high growth expectations.
How Well Does INSP Make Money?
Net Profit Margin
For every $100 in sales, Inspire Medical Systems, Inc. keeps $15.95 as profit after all expenses.
Operating Margin
Core operations generate 5.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.07 in profit for every $100 of shareholder equity.
ROA
Inspire Medical Systems, Inc. generates $16.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Inspire Medical Systems, Inc. produces operating cash flow of $117.44M, showing steady but balanced cash generation.
Free Cash Flow
Inspire Medical Systems, Inc. produces free cash flow of $78.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.71 in free cash annually.
FCF Yield
INSP converts 4.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How INSP Stacks Against Its Sector Peers
| Metric | INSP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.94 | 29.43 | Better (Cheaper) |
| ROE | 21.07% | 800.00% | Weak |
| Net Margin | 15.95% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 6.08 | 4.64 | Strong Liquidity |
| ROA | 16.03% | -17936.00% (disorted) | Strong |
INSP outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Inspire Medical Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
682.55%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
228.74%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
417.15%
Industry Style: Defensive, Growth, Innovation
High Growth