Inspire Medical Systems, Inc.
Inspire Medical Systems, Inc. Fundamental Analysis
Inspire Medical Systems, Inc. (INSP) shows strong financial fundamentals with a PE ratio of 8.91, profit margin of 14.33%, and ROE of 17.98%. The company generates $0.9B in annual revenue with strong year-over-year growth of 13.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.0/100 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
ModerateINSP maintains healthy but balanced margins.
Key Financial Metrics
Is INSP Expensive or Cheap?
P/E Ratio
INSP trades at 8.91 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INSP's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Inspire Medical Systems, Inc. at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.20 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 $14.33 as profit after all expenses.
Operating Margin
Core operations generate 5.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.98 in profit for every $100 of shareholder equity.
ROA
Inspire Medical Systems, Inc. generates $14.39 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 $137.06M, showing steady but balanced cash generation.
Free Cash Flow
Inspire Medical Systems, Inc. generates strong free cash flow of $97.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.37 in free cash annually.
FCF Yield
INSP converts 8.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.14
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 | 8.91 | 28.62 | Better (Cheaper) |
| ROE | 17.98% | 783.00% | Weak |
| Net Margin | 14.33% | -48181.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 6.34 | 4.12 | Strong Liquidity |
| ROA | 14.39% | -21914.00% (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
601.72%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
325.69%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
295.78%
Industry Style: Defensive, Growth, Innovation
High Growth