Inspire Medical Systems, Inc.INSP
NYSE • Healthcare
$43.18
P/E
9.53
PEG
—
FCF Yield
—
Rev Growth YoY
+1.6% YoY
Gross Margin
86.5%
Health Score
8/10
D/E Ratio
0.04
Confidence
—
Business Snapshot
Inspire Medical Systems operates in the medical devices subsector of healthcare, focused on treating sleep-related disorders through minimally invasive neurostimulation therapy. Its primary revenue driver is the Inspire system for obstructive sleep apnea, a niche within the broader sleep medicine market where the company holds a differentiated competitive position due to its proprietary therapy and FDA-clearance moat. With TTM revenue of $915.25 million, the company operates at a scale suggesting mid-cap status, though market capitalisation is not provided in the data. The defining characteristic is its high gross margin of 86.5%, reflecting a device-and- consumable business model with significant pricing power and limited direct competition.
Financial Health
The company reports a gross margin of 86.5%, stable versus the prior year's 86.6%, and a net margin of 14.3% — healthy but down from the prior year as costs have risen relative to revenue. The balance sheet is fortress-like, with debt-to-equity of just 0.04x and a current ratio of 6.08x, indicating ample liquidity and negligible financial leverage...
Risk Assessment
- EARNINGS QUALITY — Net income plunged -477.5% year-over-year, and the latest two quarters (Q1 and Q4) posted losses of -$11.29M and -$3.59M, while Q2 alone contributed $136.09M, suggesting a highly volatile and potentially non-repeatable earnings base.
- REVENUE DECELERATION — Year-over-year revenue growth of 1.6% is weak, but the sequential quarter-over-quarter decline of 24.0% indicates a much steeper recent deceleration that could signal demand erosion or inventory destocking.
- 52-WEEK POSITION — The current price of $43.18 is near the 52-week low of $42.65 and 73% below the 52-week high of $160.65, reflecting severe selling pressure and a potential value trap.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The FMP DCF fair value of $137.49 is highly optimistic, but it could not be validated by a second model (Python DCF) due to N/A results, introducing uncertainty in the DCF-based undervaluation claim....