One-glance verdict
Undervalued
$51.07 our estimate vs market $13.27
Wall Street consensus: $16.17 (-68.3% lower than our fair-value estimate)
74% below our estimate, below the bear case
Fundamentals snapshot
InMode Ltd.
INMD · NMS · Healthcare · Medical Devices
Current price
$13.27
52-week range
$12.72 - $16.67
Market cap
$763.32M
Balance sheet
Healthy
3.42x Stretched
Net cash $496.66M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 12.3% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Reward Trades at 11.0x P/E vs peer median 18.6x (41.1% cheaper).
- Risk Operating margin compressed from 43.6% to 12.8% over 3 years.
What this company does
InMode Ltd.
InMode sells medical devices that use radio frequency technology for cosmetic procedures like skin tightening and fat reduction, as well as for women's health. Most of their money comes from selling these devices, which matters because it shows their core business is strong and they are a leader in this niche market.
How the company got here
InMode Ltd. was founded in 2008 in Israel by Moshe Mizrahy and Dr. Michael Kreindel, who had prior experience in the medical device industry, including co-founding Syneron Medical. [3, 7, 10] The company, originally named Invasix Ltd., changed its name to InMode Ltd. in November 2017. [8] InMode's journey has been marked by a focus on developing innovative medical technologies, particularly those utilizing radio-frequency (RF) energy for minimally invasive aesthetic and medical treatments. [1, 7, 13] The company has successfully launched numerous product platforms since 2010, establishing itself as a significant player in the global medical aesthetics market. [5, 10] InMode went public on the Nasdaq stock exchange in August 2019. [5]
What it actually does
InMode designs, develops, manufactures, and markets medical devices that use proprietary radio-frequency (RF) energy. [1, 8] These technologies are used for a variety of minimally invasive and non-invasive procedures aimed at improving appearance and treating certain medical conditions. [2, 4, 8] The company's products are utilized in specialties such as plastic surgery, dermatology, gynecology, and ophthalmology. [2, 7, 10] InMode generates revenue through the sale of its devices, as well as consumables and after-sales services, creating recurring revenue streams. [1, 15]
Aesthetic Solutions
This is InMode's largest business segment, focusing on treatments for face and body contouring, skin rejuvenation, and wrinkle reduction. [1, 15] Products in this category use InMode's RF technology to tighten skin, reduce fat, and improve skin texture and tone. [1, 6, 8] Examples include devices for body contouring with simultaneous skin tightening, facial remodeling, and fractional RF microneedling to enhance skin elasticity. [1, 6] This segment represents the majority of InMode's revenue. [15]
Women's Health
InMode offers specialized solutions for women's health conditions, including treatments for vaginal rejuvenation and pelvic floor health. [1, 2] These products leverage RF technology to address specific concerns in this area. [1] This segment is a distinct part of InMode's business, catering to a specialized medical need.
Medical Aesthetics
This segment encompasses a range of non-invasive and minimally invasive products for procedures like permanent hair reduction, facial skin rejuvenation, cellulite treatment, and addressing superficial vascular and pigmented lesions. [8] It also includes treatments for improving skin appearance and texture. [8] These products are designed to offer solutions for various aesthetic concerns beyond just contouring.
What management is betting on now
InMode's management is focused on expanding its product portfolio through continued innovation and launching new devices. [1] They are also prioritizing geographic expansion, particularly in emerging markets like Asia and Latin America, to drive sustainable growth. [1, 5] The company is exploring opportunities in adjacent markets and aims to strengthen its presence globally. [1, 12] InMode also emphasizes a commitment to corporate social responsibility and sustainable practices in its operations. [1, 17]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$132.00M
FY2025 Q4
$84.28M
Revenue
$370.50M
Net income
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Diluted EPS
1.43
Operating cash flow
$85.26M
Free cash flow
$84.28M
Fetching…
Sources
Revenue
$394.82M
Net income
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Diluted EPS
2.25
Operating cash flow
$132.66M
Free cash flow
$132.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $51.07 vs current price $13.27
Wall Street consensus is the average analyst price target: $16.17 (-68.3% lower than our fair-value estimate).
Our most-likely fair value is $51.07 a share — about 285.0% above today's price of $13.27, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $496.7M - more cash than debt. Interest coverage 3.4x.
Net debt
$-496.66M
Interest coverage
3.42x
InMode Ltd.'s profit covers its interest bill about 3.4 times over. which is stronger than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
INMD
BASELINE
InMode Ltd.
Total debt $4.45M Interest coverage 3.42x This is the baseline the peer rows are being compared against.
Total debt $39.63M Interest coverage -1.15x -100% vs INMD This peer has almost no interest-payment cushion compared with INMD.
Total debt $264.24M Interest coverage -1.08x -100% vs INMD This peer has almost no interest-payment cushion compared with INMD.
Total debt $269.53M Interest coverage -1.54x -100% vs INMD This peer has almost no interest-payment cushion compared with INMD.
Total debt $28.61M Interest coverage 371.93x +10,765% vs INMD Carries about 108.6x more debt cushion than INMD.
Total debt $19.47M Interest coverage -1.02x -100% vs INMD This peer has almost no interest-payment cushion compared with INMD.
What you should know
The case for and against INMD
3 Rewards
1 Risk
Rewards
-
Returns 12.3% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 11.0x P/E vs peer median 18.6x (41.1% cheaper).
Risks
-
Operating margin compressed from 43.6% to 12.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.96x
Forward P/E
9.67x
P/B
1.24x
P/S
2.04x
EV/EBITDA
4.20x
PEG ratio
0.83x
Profitability
How much profit each dollar creates
Gross margin
76.5%
Operating margin
12.8%
Net margin
20.7%
ROE
12.3%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
8.18x
Quick ratio
6.87x
Total debt
$4.45M
Total cash
$501.12M
Growth
How the business has been compounding
Revenue TTM
$1.71B
Revenue 5Y CAGR
0.9%
EPS TTM
1.21
EPS 5Y CAGR
-8.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$576.33M
Free CF TTM
$84.28M
FCF margin
4.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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