Inogen (INGN): Losses Accelerate 31.9% Annually as Valuation Discount Widens Versus Peers

Inogen (INGN) continues to face pressure on the bottom line, with losses rising at an annualized rate of 31.9% over the past five years and expectations set for ongoing unprofitability over the next three years. At the same time, revenue growth is forecast at just 6.2% per year, trailing the broader US market’s projected 10.5% pace. The company has not demonstrated any improvement in net profit margin during the last year. While the earnings outlook remains challenging, valuation metrics suggest that the stock is deeply discounted relative to both peers and the wider US Medical Equipment industry. This puts investor focus on the tension between potential value and uncertain profit growth.

See our full analysis for Inogen.

Next, we’ll see how these headline numbers compare to the market’s expectations and the narratives that tend to shape investor sentiment in Inogen’s corner of the market.

See what the community is saying about Inogen

DCF Fair Value Nearly Three Times Share Price

• Inogen’s current share price of $7.39 is significantly below its DCF fair value estimate of $21.37, resulting in a 65% valuation gap. This gap is unusual for the sector and suggests the stock is pricing in very little improvement.
• According to the analysts' consensus view, the company’s discounted price is seen as partially justified by slow expected annual revenue growth of 6.2% and continued unprofitability. However, consensus also notes:
  • Future revenue could rise if growing demand for home respiratory care and new launches like Voxi 5 boost sales beyond conservative expectations.
  • Profit margin improvement to industry averages by 2028 would allow for significant earnings growth, but analysts remain cautious. This reflects wide disagreement on price targets and near-term profitability.

See why some analysts see opportunity while others remain cautious in the full consensus narrative. 📊 Read the full Inogen Consensus Narrative.

Price-to-Sales Ratio Points to Deep Discount Versus Peers

• Inogen’s price-to-sales ratio is just 0.6x, which is markedly lower than both the peer average of 20.1x and the Medical Equipment industry average of 2.9x. This indicates that investors are heavily discounting future growth and profitability.
• The consensus narrative highlights how this steep discount creates tension:
  • On the positive side, an expanded product portfolio and push into digital integration could eventually close the valuation gap if recurring revenue materializes and margins improve.
  • On the downside, persistent competition and margin pressure could keep valuation multiples depressed, especially if Inogen fails to convert innovation into earnings momentum.

Losses Accelerate Even as Growth Lags the Industry

• Annualized net losses have increased at a 31.9% rate over five years, while projected annual revenue growth of 6.2% falls well short of the US market’s 10.5% average.
• Consensus narrative underscores this double challenge for bulls:
  • Margin headwinds from pricing pressure and uncertain reimbursement weigh on profitability, and competitive and regulatory risks could drag on earnings for longer than bulls anticipate.
  • Despite operational improvements such as salesforce streamlining and innovation, the slow revenue trajectory and no forecast for profitability in the next three years have led to waning investor patience.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Inogen on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Inogen research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Despite trading at a steep discount, Inogen continues to face losses, unpredictable earnings, and slower growth than its industry peers. This makes reliable performance uncertain.

If steady expansion and predictability matter to you, target companies delivering consistent results across cycles by focusing on stable growth stocks screener (2074 results) for your next investment search.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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