NYSE:INSP

Stock Analysis Report

Inspire Medical Systems

Executive Summary

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA).

Snowflake

Fundamentals

Excellent balance sheet with limited growth.

Share Price & News

How has Inspire Medical Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

INSP

-1.5%

US Healthcare Services

1.0%

US Market


1 Year Return

35.6%

INSP

16.4%

US Healthcare Services

8.0%

US Market

Return vs Industry: INSP exceeded the US Healthcare Services industry which returned 16.4% over the past year.

Return vs Market: INSP exceeded the US Market which returned 8% over the past year.


Shareholder returns

INSPIndustryMarket
7 Day2.5%-1.5%1.0%
30 Day-15.5%-3.7%-0.07%
90 Day-17.8%-6.6%-1.0%
1 Year35.6%35.6%16.6%16.4%10.4%8.0%
3 Yearn/a64.0%63.4%46.2%36.7%
5 Yearn/a63.2%61.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Inspire Medical Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Inspire Medical Systems undervalued compared to its fair value and its price relative to the market?

8.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate INSP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate INSP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: INSP is unprofitable, so we can't compare its PE Ratio to the Healthcare Services industry average.

PE vs Market: INSP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INSP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INSP is overvalued based on its PB Ratio (8.8x) compared to the US Healthcare Services industry average (3.4x).


Next Steps

Future Growth

How is Inspire Medical Systems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INSP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: INSP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: INSP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: INSP's revenue (28.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: INSP's revenue (28.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INSP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Inspire Medical Systems performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INSP is unprofitable, and losses have increased over the past 5 years at a rate of -5.6% per year.

Accelerating Growth: Unable to compare INSP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: INSP is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (-1.2%).


Return on Equity

High ROE: INSP has a negative Return on Equity (-16.65%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: INSP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: INSP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Inspire Medical Systems's financial position?


Financial Position Analysis

Short Term Liabilities: INSP's short term assets ($177.2M) exceeds its short term liabilities ($8.7M)

Long Term Liabilities: INSP's short term assets (177.2M) exceeds its long term liabilities (24.4M)


Debt to Equity History and Analysis

Debt Level: INSP's debt to equity ratio (16%) is considered satisfactory

Reducing Debt: Insufficient data to determine if INSP's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: INSP has a low level of unsold assets or inventory.

Debt Coverage by Assets: INSP's debt is covered by short term assets (assets are 7.259550x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: INSP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: INSP has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -20.5% each year


Next Steps

Dividend

What is Inspire Medical Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate INSP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate INSP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if INSP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INSP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INSP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Inspire Medical Systems's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Timothy Herbert (56yo)

11.9yrs

Tenure

US$3,260,769

Compensation

Mr. Timothy P. Herbert has been Chief Executive Officer, President and Director of Inspire Medical Systems, Inc. since November 2007. He is the Founder of Inspire Medical Systems, Inc. Mr. Herbert has over ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Timothy's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Timothy's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: INSP's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

10.4yrs

Average Tenure

60yo

Average Age

Experienced Board: INSP's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: INSP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$86,11822 Aug 19
Mudit Jain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,250
Max PriceUS$69.00
SellUS$149,72220 Aug 19
Mudit Jain
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,240
Max PriceUS$67.80
SellUS$1,655,03008 Jul 19
GDN Holdings, LLC
EntityCompany
Shares25,000
Max PriceUS$66.97
SellUS$3,711,28704 Jun 19
Amzak Health Investors, Llc
EntityCompany
Shares66,568
Max PriceUS$56.05
SellUS$2,390,82530 May 19
Amzak Health Investors, Llc
EntityCompany
Shares44,053
Max PriceUS$54.39
SellUS$2,146,95224 May 19
Amzak Health Investors, Llc
EntityCompany
Shares39,379
Max PriceUS$54.82
SellUS$2,595,69812 Apr 19
GDN Holdings, LLC
EntityCompany
Shares47,015
Max PriceUS$55.21
SellUS$20,513,51212 Mar 19
OrbiMed Advisors LLC
EntityCompany
Shares358,449
Max PriceUS$57.75
SellUS$1,369,39508 Mar 19
U.S. Venture Partners
EntityCompany
Shares25,000
Max PriceUS$54.78
SellUS$48,88013 Dec 18
Jerry Griffin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,300
Max PriceUS$37.60
SellUS$23,115,42713 Dec 18
OrbiMed Advisors LLC
EntityCompany
Shares614,772
Max PriceUS$37.60

Ownership Breakdown


Management Team

  • Rick Buchholz (51yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.16m
  • Steve Jandrich (52yo)

    VP of Human Resources & Chief Compliance Officer

    • Tenure: 0.8yrs
  • Timothy Herbert (56yo)

    CEO, President & Director

    • Tenure: 11.9yrs
    • Compensation: US$3.26m
  • Randy Ban (54yo)

    Chief Commercial Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.06m
  • John Rondoni

    Vice President of Product Development

    • Tenure: 0yrs
  • Martin Abrams

    VP of Marketing & Customer Experience

    • Tenure: 0.8yrs
  • Ivan Lubogo

    Senior Vice President of Sales

    • Tenure: 0.8yrs

Board Members

  • Casey Tansey (61yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$146.37k
  • Dana Mead (60yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$143.10k
  • Shawn McCormick (55yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$149.73k
  • Jerry Griffin (74yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$144.76k
  • Marilyn Nelson (79yo)

    Chair of the Board

    • Tenure: 2.9yrs
    • Compensation: US$162.08k
  • Gary Ellis (61yo)

    Director

    • Tenure: 0.3yrs
  • Chau Khuong (43yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$141.38k
  • Mudit Jain (50yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: US$143.03k
  • Timothy Herbert (56yo)

    CEO, President & Director

    • Tenure: 11.9yrs
    • Compensation: US$3.26m

Company Information

Inspire Medical Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inspire Medical Systems, Inc.
  • Ticker: INSP
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$1.349b
  • Shares outstanding: 23.91m
  • Website: https://www.inspiresleep.com

Number of Employees


Location

  • Inspire Medical Systems, Inc.
  • 5500 Wayzata Boulevard
  • Suite 1600
  • Golden Valley
  • Minnesota
  • 55416
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INSPNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2018
2DRDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2018

Biography

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Insp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:51
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.