InMode (INMD) AI Stock Analysis

• Market Cap: $887.46M
• Dividend Yield: N/A
• Average Volume (3M): 579.91K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.04
• 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: 63,209,152
• 10 Day Avg. Volume: 738,815
• 30 Day Avg. Volume: 579,909
• 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: 0.48
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: 2.85
• 1Y Price Target: $17.33
• Price Target Upside: 23.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): $379.16M

• Rating: 75 Outperform
• Price Target: $16.00 ▲(13.88% Upside)

The score is driven primarily by strong financial performance (high profitability, very strong balance sheet, and solid cash generation) and a supportive low P/E valuation. Offsetting these strengths are a weaker technical trend (trading below key moving averages) and an earnings-call backdrop showing significant year-over-year declines in revenue and margins despite reiterated guidance and encouraging consumables/international growth.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio give InMode durable financial flexibility. This supports sustained investment in R&D, international expansion and buyback or M&A optionality, while insulating operations from rate or credit market stress over the next several quarters.

High Profitability & Cash Conversion

Sustained high gross and net margins combined with strong cash conversion create reliable free cash flow. The company reported robust FCF growth TTM, enabling reinvestment in product development, consumables distribution and marketing without relying on external financing.

Recurring Consumables Growth

Double-digit consumables/service growth indicates increasing recurring revenue and higher customer lifetime value. As devices installed base expands—supported by new subsidiaries—consumables drive steady, margin-accretive revenue that stabilizes top-line over multiple quarters.

Negative Factors

Quarterly Revenue Decline

A large quarter-over-quarter revenue drop signals potential demand or timing issues that can persist into future periods absent clear drivers. Prolonged lower device sales reduce instal-base growth, slowing future consumables pull-through and long-term organic revenue momentum.

Margin Compression

Rising costs and tariff exposure have compressed both gross and operating margins materially. If trade or input-cost pressures persist, margin erosion could weaken the company’s ability to fund growth initiatives and reduce the margin cushion that supports high ROE.

Ongoing Shareholder Litigation Risk

An active securities suit creates legal and reputational uncertainty that can persist for many quarters. Even if initially dismissed, repleading raises potential defense costs, management distraction and contingent liabilities that could affect capital allocation and investor confidence over time.

InMode Business Overview & Revenue Model

Company Description

InMode 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 Money

InMode generates revenue through the sale of its proprietary devices and consumables used in aesthetic procedures. Its primary revenue streams include the direct sale of medical devices to healthcare providers, as well as recurring revenue from disposable products associated with these devices. Additionally, the company benefits from training and support services provided to practitioners, which help to establish long-term partnerships. Key factors contributing to InMode's earnings include the growing demand for non-invasive aesthetic treatments, strategic collaborations with medical professionals, and the expansion of its product portfolio to address diverse patient needs.

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: 14.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.05 is below the 20-day moving average (MA) of 14.60, below the 50-day MA of 14.42, and below the 200-day MA of 14.67, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 6.20 is Positive, 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	75 Outperform	$887.46M	6.50	21.52%	―	-13.98%	15.94%
AXGN	66 Neutral	$1.42B	-637.14	-1.90%	―	18.72%	85.77%
BVS	64 Neutral	$640.59M	71.15	4.97%	―	1.58%	―
ESTA	61 Neutral	$1.92B	-23.18	-338.19%	―	24.76%	-10.41%
OFIX	55 Neutral	$567.07M	-4.74	-24.60%	―	4.31%	3.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SSII	47 Neutral	$1.07B	-86.93	-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.

The most recent analyst rating on (INMD) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on InMode stock, see the INMD Stock Forecast page.