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InMode (INMD)
NASDAQ:INMD
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InMode
(NASDAQ:INMD)
Rating:70Outperform
Price Target:―
Positive Factors
Innovation
InMode is viewed as a high-quality company with premium product offerings and an innovation pipeline that is best-in-class.
Share Buyback
INMD quickly executing its buyback program is encouraging.
Negative Factors
Consumer Demand
INMD has not seen an increase in the number of consumables sold despite adding more capital to the market, implying ongoing weakness in consumer demand.
Revenue Performance
InMode announced preliminary revenues significantly below consensus estimates, indicating potential challenges ahead.
Tariffs Impact
A higher mix of OUS revenues coupled with its expectations for 10% US tariffs on Israel led INMD to lower its margin and bottom-line guidance for FY25.
InMode (INMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.07B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)6.5
Beta (1Y)1.33
Revenue Growth-15.84%
EPS Growth9.26%
CountryUS
Employees599
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.31
Shares Outstanding69,558,670
10 Day Avg. Volume2,278,771
30 Day Avg. Volume1,525,318
Financial Highlights & Ratios
PEG Ratio-5.29
Price to Book (P/B)5.31
Price to Sales (P/S)0.00
P/FCF Ratio16.36
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit9.08
Enterprise Value/Ebitda5.76
Forecast
1Y Price Target
$17.25Price Target Upside13.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
InMode Business Overview & Revenue Model
Company DescriptionInMode (INMD) is a leading global provider in the medical technology sector, specializing in minimally invasive aesthetic medical products. The company develops, manufactures, and markets innovative devices that leverage radio-frequency (RF) technology to provide solutions for a variety of aesthetic procedures. These procedures include body contouring, skin tightening, and facial rejuvenation, among others, catering to both the healthcare professional and the consumer markets.
How the Company Makes MoneyInMode makes money primarily through the sale of its medical aesthetic devices, which utilize proprietary radio-frequency technology. The company generates revenue by selling these devices to plastic surgeons, dermatologists, and other medical professionals worldwide. InMode's business model also includes recurring revenue streams from the sale of consumables and disposables that accompany the use of its devices, such as treatment tips and handpieces. Additionally, InMode offers training and support services to ensure effective and safe use of its products, further solidifying customer relationships and enhancing device utilization. Strategic partnerships with leading healthcare providers and an extensive distribution network also contribute to the company's revenue growth by expanding its market reach and customer base.
InMode Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: -6.10%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Negative
InMode faces significant challenges with declining revenue, reduced margins, and the impact of U.S. tariffs. Despite completing a significant share purchase program and strong international sales, the financial performance this quarter was underwhelming, leading to reduced guidance for 2025.Q1-2025 Updates
Positive Updates
Shareholder Return Program
InMode completed its fifth share purchase program this month, purchasing 6.95 million shares totaling $127 million. Over the past 12 months, the company has returned more than $412 million to shareholders through share purchases, representing approximately 27% of total capital.
Strong International Sales
First quarter sales outside of the U.S. accounted for $38 million, representing 49% of total sales, a 1% increase compared to the same period last year. Europe was the largest revenue contributor from outside the U.S. and reached a record sales number.
Negative Updates
Revenue Decline
Total revenue for Q1 2025 was $77.9 million, a decrease of 3% compared to the first quarter of 2024.
Decreased Gross Margins
Gross margin was 78% on a GAAP basis, compared to 80% in Q1 2024. Non-GAAP gross margins were 79% versus 80% in the same period last year.
Operating Margin Decline
GAAP operating margin in Q1 2025 was 20%, down from 23% in Q1 2024. Non-GAAP operating margin decreased to 23% from 27% in the first quarter of 2024.
Reduced Earnings per Share
GAAP diluted earnings per share for Q1 2025 were $0.26 compared to $0.28 in Q1 2024. Non-GAAP diluted earnings per share were $0.31 compared to $0.32 in Q1 2024.
Impact of U.S. Tariffs
With U.S. tariffs at their current levels of 10%, the company anticipates an impact of approximately 2% to 3% on gross margins. The situation remains fluid, with potential for increased tariffs.
Guidance Reduction
Revised guidance for 2025 includes revenues between $395 million to $405 million, down from previous guidance of $400 million to $410 million, and non-GAAP gross margins between 78% to 80%, compared to prior guidance of 80% to 82%.
Company Guidance
During InMode's First Quarter 2025 Earnings Results Conference Call, the company provided updated guidance amidst ongoing macroeconomic challenges. InMode's Q1 2025 revenue was reported at $77.9 million, reflecting a 3% decrease compared to the same period in the previous year. The gross margin was 78% on a GAAP basis, down from 80% in Q1 2024. The company noted that minimally invasive platforms accounted for 87% of total revenues, with international sales contributing $38 million or 49% of total sales, marking a 1% increase from Q1 2024. Operating expenses were $45.3 million on a GAAP basis, a slight 1% decrease year-over-year. The GAAP operating margin was 20%, down from 23% in Q1 2024, while GAAP diluted earnings per share were $0.26, compared to $0.28 in Q1 2024. For 2025, InMode reiterated its guidance for revenues between $395 million to $405 million, adjusted its non-GAAP gross margin guidance to 78%-80%, and expects non-GAAP earnings per diluted share between $1.64 to $1.68, reflecting adjustments due to factors like U.S. tariffs. The company remains committed to maintaining its workforce and leading the industry into the future, despite current economic pressures.InMode Financial Statement Overview
Summary
InMode presents a robust financial profile characterized by strong profitability, excellent balance sheet health, and solid cash flow generation. While revenue growth has tempered recently, the company's low leverage and efficient operations support its financial resilience and potential for sustained performance in the Medical Devices industry.Income Statement
InMode has demonstrated strong profitability with a consistent Gross Profit Margin of around 80% over the years. While Revenue Growth has slowed in recent periods, with a slight decline in the latest TTM period, the company maintains a robust Net Profit Margin averaging over 40%. The EBIT and EBITDA margins also reflect efficient operational performance, indicating strong profitability in the Medical Devices industry.85
Very Positive
Balance Sheet
The company exhibits a very healthy balance sheet with a Debt-to-Equity Ratio consistently below 0.02, showcasing low leverage and minimal debt reliance. Return on Equity (ROE) remains strong, often exceeding 20%, indicating efficient use of equity capital. The Equity Ratio is high, further emphasizing the company's financial stability and low risk profile.90
Very Positive
Cash Flow
InMode's cash flow performance is solid, with strong Free Cash Flow generation and a Free Cash Flow to Net Income Ratio typically exceeding 0.6. Although the Free Cash Flow Growth Rate has decreased in recent periods, the Operating Cash Flow consistently covers Net Income, indicating healthy cash conversion and operational efficiency.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 392.41M | 394.82M | 492.05M | 454.27M | 357.56M | 206.11M |
| Gross Profit | 314.06M | 317.07M | 411.34M | 380.79M | 303.97M | 175.26M |
| EBITDA | 110.79M | 113.26M | 196.28M | 198.53M | 167.99M | 73.26M |
| Net Income | 175.78M | 181.28M | 197.92M | 161.52M | 164.97M | 75.03M |
Balance Sheet | ||||||
| Total Assets | 704.74M | 785.67M | 863.29M | 644.41M | 478.54M | 295.76M |
| Cash, Cash Equivalents and Short-Term Investments | 512.92M | 596.47M | 741.61M | 547.38M | 415.91M | 260.53M |
| Total Debt | 5.59M | 7.82M | 9.02M | 4.96M | 3.31M | 358.00K |
| Total Liabilities | 85.31M | 81.85M | 75.91M | 89.79M | 62.74M | 40.29M |
| Stockholders Equity | 619.43M | 703.81M | 787.37M | 554.62M | 415.80M | 255.47M |
Cash Flow | ||||||
| Free Cash Flow | 121.41M | 132.00M | 176.12M | 180.00M | 173.95M | 78.76M |
| Operating Cash Flow | 122.05M | 132.66M | 176.83M | 181.58M | 174.88M | 79.22M |
| Investing Cash Flow | 285.32M | 162.21M | -136.06M | -109.47M | -160.11M | -43.30M |
| Financing Cash Flow | -381.75M | -282.77M | 5.50M | -41.09M | -15.02M | -12.44M |
InMode Technical Analysis
Neutral
15.23
Price Trends
14.38
Positive
15.99
Negative
16.76
Negative
Market Momentum
0.22
Negative
62.48
Neutral
81.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INMD, the sentiment is Neutral. The current price of 15.23 is above the 20-day moving average (MA) of 14.24, above the 50-day MA of 14.38, and below the 200-day MA of 16.76, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks
1.
We have limited business in Russia which pose some degree of sanctions risk that cannot be entirely eliminated. Q4, 2022
InMode Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.07B | 6.55 | 24.50% | ― | -15.84% | 9.26% | |
68 Neutral | $1.31B | ― | -7.25% | ― | 5.94% | -115.82% | |
64 Neutral | ¥338.86B | 10.95 | -2.99% | 2.58% | 11.77% | -10.17% | |
62 Neutral | $1.27B | ― | -186.68% | ― | 9.27% | 1.51% | |
56 Neutral | $1.70B | ― | -291.71% | ― | 25.53% | 23.22% | |
50 Neutral | $560.22M | ― | -19.79% | ― | 8.60% | -42.76% |
* Healthcare Sector Average
Performance Comparison
INMD
InMode
15.23
-1.59
-9.45%
ATEC
Alphatec Holdings
11.49
0.53
4.84%
AORT
Artivion
32.15
5.55
20.86%
ESTA
Establishment Labs Holdings
45.06
-0.57
-1.25%
BVS
Bioventus
7.32
0.74
11.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.