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Inmode (INMD)
:INMD
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InMode
(NASDAQ:INMD)
80Outperform
Positive Factors
Financial Stability
INMD's healthy balance sheet and free cash flow generation, even in a difficult market environment, remain undervalued.
Innovation and Product Development
With a strong balance sheet, INMD remains proactive by launching two platforms in 2024 and planning two more in 2025, including a new C02 laser.
Shareholder Returns
The company is planning further shareholder capital return beyond the additional share buyback program.
Negative Factors
Macroeconomic Challenges
INMD continues to face challenging macroeconomic and demand conditions, with expectations for flat to low single-digit growth.
Management Credibility
Management credibility needs to be rebuilt after several consecutive quarters of misses and guidance revisions.
Sales Performance
Q4 revenue was significantly below consensus and the implied guidance range.
InMode (INMD) vs. S&P 500 (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)6.6
Beta (1Y)1.66
Revenue Growth-19.76%
EPS Growth0.38%
CountryUS
Employees599
SectorHealthcare
Sector Strength77
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.34
Shares Outstanding69,558,670
10 Day Avg. Volume1,670,005
30 Day Avg. Volume1,366,413
Financial Highlights & Ratios
PEG Ratio17.33
Price to Book (P/B)N/A
Price to Sales (P/S)3.28
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.75Price Target Upside41.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
InMode Business Overview & Revenue Model
Company DescriptionInMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.
How the Company Makes MoneyInMode makes money through the sale of its medical devices and related consumables and accessories. The company's revenue model is primarily driven by direct sales to physicians, clinics, and healthcare institutions. InMode's key revenue streams include the one-time sale of its capital equipment and recurring revenue from consumables, such as disposable applicators and other accessories needed for the procedures. The company also benefits from service agreements and maintenance contracts with its clients. InMode's revenue is further supported by its strategic partnerships and distribution agreements, which help expand its market reach and product accessibility. The company's innovative R&D and effective marketing strategies contribute significantly to its earnings by maintaining a competitive edge and continually attracting new customers.
InMode Financial Statement Overview
Summary
InMode demonstrates strong financial health with high profit margins and low leverage, providing stability and financial flexibility. However, the decline in revenue growth in 2024 and slight reduction in free cash flow warrant caution.Income Statement
InMode's income statement shows strong profitability with a consistently high gross profit margin ranging from 84% to 86% over the past few years. The net profit margin has also remained impressive, ranging from 37% to 40%. However, there was a decline in total revenue in 2024 compared to 2023, indicating a decrease in revenue growth. Despite this, EBIT and EBITDA margins have remained robust, indicating efficient operational management.85
Very Positive
Balance Sheet
InMode's balance sheet is characterized by a very low debt-to-equity ratio, indicating conservative leverage. The company maintains a strong equity position, with equity representing a substantial part of its total assets. Return on equity has been strong, showing effective use of shareholder funds. Overall, the balance sheet reflects financial stability and low risk.90
Very Positive
Cash Flow
The cash flow statement indicates a slight decline in free cash flow from 2023 to 2024. However, the operating cash flow to net income ratio is strong, suggesting effective cash generation from operations. The free cash flow to net income ratio also demonstrates healthy cash flow generation relative to net income, though it has slightly decreased over the periods.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 394.82M | 492.05M | 454.27M | 357.56M | 206.11M | Gross Profit |
| 317.07M | 411.34M | 380.79M | 303.97M | 175.26M | EBIT |
| 112.53M | 195.66M | 197.85M | 167.48M | 72.84M | EBITDA |
| 113.26M | 196.28M | 198.53M | 167.99M | 73.26M | Net Income Common Stockholders |
| 181.28M | 197.92M | 161.52M | 164.97M | 75.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 596.47M | 741.61M | 547.38M | 415.91M | 260.53M | Total Assets |
| 785.67M | 863.29M | 644.41M | 478.54M | 295.76M | Total Debt |
| 7.82M | 9.02M | 4.96M | 3.31M | 358.00K | Net Debt |
| -147.51M | -135.39M | -92.58M | -64.83M | -68.58M | Total Liabilities |
| 81.85M | 75.91M | 89.79M | 62.74M | 40.29M | Stockholders Equity |
| 703.81M | 787.37M | 554.62M | 415.80M | 255.47M |
| Cash Flow | Free Cash Flow | |||
| 132.00M | 176.12M | 180.00M | 173.95M | 78.76M | Operating Cash Flow |
| 132.66M | 176.83M | 181.58M | 174.88M | 79.22M | Investing Cash Flow |
| 162.21M | -136.06M | -109.47M | -160.11M | -43.30M | Financing Cash Flow |
| -282.77M | 5.50M | -41.09M | -15.02M | -12.44M |
InMode Technical Analysis
Negative
15.40
Price Trends
18.26
Negative
18.04
Negative
17.53
Negative
Market Momentum
-0.13
Positive
46.19
Neutral
26.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INMD, the sentiment is Negative. The current price of 15.4 is below the 20-day moving average (MA) of 17.94, below the 50-day MA of 18.26, and below the 200-day MA of 17.53, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 26.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INMD.
InMode Risk Analysis
InMode disclosed 61 risk factors in its most recent earnings report. InMode reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
InMode Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.09B | 6.58 | 24.31% | ― | -19.76% | 0.38% | |
79 Outperform | $191.59M | 29.35 | 16.11% | ― | 15.35% | 71.35% | |
68 Neutral | $73.57M | 11.02 | 12.70% | ― | 71.31% | 1277.03% | |
60 Neutral | $3.15B | ― | -75.27% | ― | 20.13% | 10.05% | |
48 Neutral | $6.35B | 1.19 | -46.87% | 2.63% | 17.16% | 1.34% | |
36 Underperform | $201.86K | ― | ― | -32.57% | -15.03% | ||
36 Underperform | $6.81M | ― | -263.19% | ― | -75.28% | 71.22% |
* Healthcare Sector Average
Performance Comparison
INMD
InMode
14.48
-3.95
-21.43%
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0.01
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ELMD
Electromed
22.11
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SRTS
Sensus Healthcare
4.57
1.12
32.46%
IRTC
Irhythm Technologies
96.84
-16.35
-14.44%
CYN
Cyngn
3.90
-2,303.10
-99.83%
InMode Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -7.62% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted InMode's continued investment in innovation and shareholder returns through new platform launches and share repurchases. However, significant revenue and operating margin declines, coupled with challenges in the U.S. market and supply chain issues, contributed to a mixed outlook. While the company remains optimistic about future growth and market recovery, current economic and industry challenges weigh heavily on performance.Highlights
Launch of New Platforms
In 2024, InMode launched two new platforms: IgniteRF and OptimasMAX. Both platforms are early in revenue stages but have received positive feedback from doctors worldwide, potentially leading to better adoption in 2024.
Strong Cash Generation and Shareholder Returns
In 2024, InMode returned more than $285 million to shareholders via share repurchasing, representing approximately 19% of its share capital. A new share repurchase program of up to 10% of share capital is planned for the next 3 to 6 months.
High Gross Margins
Despite challenges, InMode maintained a high gross margin, with a non-GAAP gross margin of 80% for Q4 and 81% for the full year 2024.
Lowlights
Revenue Decline
Total revenue for the full year 2024 decreased by 20% compared to 2023. Q4 2024 revenue was $97.9 million, with a significant decrease in international sales, which accounted for $35.2 million, a 23% decrease from Q4 2023.
Decreased Operating Margins
GAAP operating margin for Q4 and 2024 was 28%, while non-GAAP operating margin was 32% and 33%, respectively, down from 45% in the previous year.
Challenges in the U.S. Market
Sales outside the U.S. decreased by 19% for the full year 2024 compared to 2023, with the U.S. market experiencing decreased demand due to high interest rates and fewer patients seeking minimally invasive procedures.
Supply Chain and Macroeconomic Challenges
InMode faced intense headwinds in the aesthetic industry due to broader macroeconomic factors, including high interest rates impacting leasing costs for doctors.
Company Guidance
During the InMode Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance for 2025, projecting revenue between $395 million and $405 million, and a non-GAAP gross margin between 80% and 82%. They expect non-GAAP income from operations to be between $130 million and $135 million, and non-GAAP earnings per diluted share between $1.95 and $1.99. InMode faced challenges in 2024 due to macroeconomic headwinds, leading to a 20% revenue decrease compared to 2023, with total revenue for the year at $394.8 million. Despite this, the company maintained a strong gross margin of 81% for the year. They also announced a new share repurchase program representing 10% of share capital, following $285 million in repurchases in 2024. The company remains optimistic about their innovative product launches, including the IgniteRF and OptimasMAX platforms, and plans to introduce two new platforms in 2025, focusing on facial rejuvenation with the fractional laser CO2 and another medical market platform.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.