InMode (INMD) AI Stock Analysis

• Market Cap: $977.99M
• Dividend Yield: N/A
• Average Volume (3M): 658.24K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.11
• Revenue Growth: -13.98%
• EPS Growth: 15.94%
• Country: US
• Employees: 599
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.38
• Shares Outstanding: 69,558,670
• 10 Day Avg. Volume: 623,151
• 30 Day Avg. Volume: 658,235
• PEG Ratio: -2.16
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 10.03
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 2.85
• 1Y Price Target: $17.67
• Price Target Upside: 25.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.57
• Revenue Forecast (FY): $368.34M

• Rating: 71 Outperform
• Price Target: $16.00 ▲(13.80% Upside)

InMode's overall stock score is driven by strong financial performance and attractive valuation, indicating a fundamentally sound company. However, technical analysis shows bearish momentum, and the earnings call revealed significant declines in key financial metrics, which temper the overall outlook.

Positive Factors

International Expansion

The strategic expansion into emerging markets like Argentina and Thailand positions InMode for long-term growth by tapping into new customer bases and diversifying revenue streams.

Strong Cash Position

A strong cash position provides InMode with the financial flexibility to invest in growth opportunities, weather economic downturns, and enhance shareholder value.

Consumables Revenue Growth

Growth in consumables revenue indicates strong recurring income potential, enhancing business stability and customer retention.

Negative Factors

Revenue Decline

The significant revenue decline suggests challenges in maintaining sales momentum, potentially impacting long-term growth and profitability.

Decline in Gross Margins

A decline in gross margins could indicate increased cost pressures or pricing challenges, which may affect future profitability if not addressed.

Decreased Operating Margins

The decrease in operating margins reflects potential inefficiencies or increased expenses, which could hinder the company's ability to invest in growth initiatives.

InMode Business Overview & Revenue Model

Company Description

InMode Ltd. is a global provider of innovative and minimally invasive aesthetic and medical technologies. The company specializes in devices that utilize radiofrequency (RF) technology to perform various aesthetic procedures, including body contouring, facial rejuvenation, and hair removal. InMode operates primarily in the aesthetic medicine sector, offering a range of products designed for plastic surgeons, dermatologists, and other medical professionals. Its core products include the BodyTite, FaceTite, and Morpheus8 platforms, which enhance both surgical and non-surgical treatment options for patients seeking cosmetic improvements.

How the Company Makes Money

InMode generates revenue primarily through the sale of its medical devices and consumables used in aesthetic procedures. The company sells its devices to medical practitioners and clinics, which then use these technologies to provide services to patients. A significant portion of InMode's revenue comes from recurring sales of consumables, such as RF handpieces, that are required for ongoing treatments. Additionally, InMode benefits from partnerships with clinics and healthcare providers that offer its technologies, enhancing its market reach. The company's focus on innovation and expanding its product portfolio also contributes to its revenue growth, as new technologies attract more customers and increase usage among existing clients.

InMode Financial Statement Overview

Summary

InMode demonstrates strong financial health with robust profitability, a solid balance sheet, and efficient cash flow management. The company is well-positioned in the medical devices industry, with significant revenue growth and minimal financial risk. Monitoring the slight declines in certain margins and cash flow ratios will be important to maintain this strong performance.

Income Statement

InMode's income statement reflects strong profitability with a high gross profit margin of approximately 80% and a net profit margin of 44.5% for TTM. The company has shown impressive revenue growth of 23.2% in the TTM period, indicating robust demand for its products. EBIT and EBITDA margins are also healthy, suggesting efficient operations. However, the slight decline in gross profit margin over the years could be a potential area of concern.

Balance Sheet

The balance sheet is exceptionally strong with a very low debt-to-equity ratio of 0.0097, indicating minimal leverage and financial risk. The return on equity is solid at 26.6%, showcasing effective use of equity to generate profits. The equity ratio of 88.9% further highlights the company's strong capital structure and financial stability.

Cash Flow

InMode's cash flow statement shows a healthy free cash flow growth rate of 25.9% in the TTM period, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 1.57 indicates efficient cash conversion. The free cash flow to net income ratio is nearly 1, suggesting that the company is effectively converting its earnings into cash. However, the slight decline in operating cash flow coverage ratio over the years warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.73M	394.82M	492.05M	454.27M	357.56M	206.11M
Gross Profit	393.48M	317.07M	411.34M	380.79M	303.97M	175.26M
EBITDA	149.21M	113.26M	196.28M	198.53M	167.99M	73.26M
Net Income	200.57M	181.28M	197.92M	161.52M	164.97M	75.03M
Balance Sheet
Total Assets	734.61M	785.67M	863.29M	644.41M	478.54M	295.76M
Cash, Cash Equivalents and Short-Term Investments	532.31M	596.47M	741.61M	547.38M	415.91M	260.53M
Total Debt	5.59M	7.82M	9.02M	4.96M	4.52M	1.24M
Total Liabilities	81.22M	81.85M	75.91M	89.79M	62.74M	40.29M
Stockholders Equity	653.38M	703.81M	787.37M	554.62M	415.80M	253.96M
Cash Flow
Free Cash Flow	131.16M	132.00M	176.12M	180.00M	173.95M	78.76M
Operating Cash Flow	131.93M	132.66M	176.83M	181.58M	174.88M	79.22M
Investing Cash Flow	357.93M	162.21M	-136.06M	-109.47M	-160.11M	-43.30M
Financing Cash Flow	-326.38M	-282.77M	5.50M	-41.09M	-15.02M	-12.44M

InMode Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.06 is below the 20-day moving average (MA) of 14.51, below the 50-day MA of 14.93, and below the 200-day MA of 15.43, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INMD.

InMode Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INMD	71 Outperform	$977.99M	6.50	21.52%	―	-13.98%	15.94%
BVS	64 Neutral	$599.21M	64.47	4.97%	―	1.58%	―
AXGN	63 Neutral	$1.24B	―	-1.90%	―	18.72%	85.77%
ESTA	55 Neutral	$1.43B	-16.14	-338.19%	―	24.76%	-10.41%
OFIX	52 Neutral	$604.29M	-5.02	-24.60%	―	4.31%	3.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SSII	39 Underperform	$1.15B	―	-43.42%	―	159.43%	67.42%

InMode Corporate Events

InMode Reports Q3 2025 Financial Results Amid Legal Challenges

On November 5, 2025, InMode Ltd. announced its financial results for the third quarter of 2025, reporting revenues of $93.2 million, a decrease from $130.2 million in the same period of 2024. The company experienced a decline in gross margins and net income compared to the previous year, attributed to lower sales in the U.S., its most profitable region. Despite the challenging economic conditions and cautious consumer sentiment, InMode remains committed to strategic investments and regional growth, highlighted by the appointment of Michael Dennison as the new President of North America. The company is also involved in ongoing legal proceedings related to a shareholder class action, with the court dismissing most of the claims but allowing for a replead.

InMode Ltd. Sees Partial Dismissal in Shareholder Class Action

InMode Ltd. is currently involved in a legal proceeding following a shareholder class action filed in February 2024, alleging false or misleading statements related to its business operations. On September 12, 2025, a court order dismissed 19 of the 24 statements in the complaint with leave to amend, and the company continues to deny wrongdoing and plans to defend itself vigorously.