Last Updated: 10 Nov 2024
Executive Summary
InMode Ltd (INMD) is a leading provider of minimally invasive aesthetic medical products based on its proprietary RF-assisted lipolysis and deep subdermal fractional RF technologies. The company has a strong financial position with a market capitalization of $1.48 billion, EBITDA of $136.51 million, and EPS of $1.83. InMode's products are in high demand due to the growing popularity of non-surgical aesthetic procedures. The company's shares have outperformed the market in recent years, and analysts are bullish on its long-term prospects.
Company Overview
InMode Ltd was founded in 2000 and is headquartered in Yokneam, Israel. The company designs, develops, manufactures, and markets a range of aesthetic medical products, including devices for body contouring, skin tightening, and hair removal. InMode's products are used by dermatologists, plastic surgeons, and other medical professionals in over 70 countries.
Fundamental Analysis
InMode Ltd has a strong financial position. The company's revenue has grown by an average of 20% per year over the past five years. In 2023, InMode reported revenue of $423.75 million, up 5.8% year-over-year. The company's net income was $79.4 million, up 20.4% year-over-year. InMode's gross profit margin is 89.9%, and its operating margin is 37.1%. The company has a strong balance sheet with $162.2 million in cash and equivalents and no debt.
InMode Ltd is trading at a trailing PE ratio of 10.61 and a forward PE ratio of 9.34. The company's PEG ratio is 2.9, which indicates that it is undervalued relative to its growth prospects. InMode's price-to-sales ratio is 3.49, which is in line with the industry average.
Technical Analysis
InMode Ltd's stock price has been in a downtrend since reaching a 52-week high of $26.8 in March 2022. The stock is currently trading at $19.41, which is below its 50-day and 200-day moving averages. The relative strength index (RSI) is 45.5, which indicates that the stock is oversold.
Short Term Outlook
In the short term, InMode Ltd's stock price is likely to remain volatile. The stock is currently trading below its moving averages and the RSI is oversold. However, the company's fundamentals are strong and the long-term outlook is positive.
Long Term Outlook
In the long term, InMode Ltd is well-positioned for growth. The company's products are in high demand due to the growing popularity of non-surgical aesthetic procedures. InMode has a strong financial position and a track record of innovation. The company is expected to continue to grow its revenue and earnings in the years to come.
Analyst Recommendations
Analysts are bullish on InMode Ltd's long-term prospects. The consensus analyst rating is "buy," and the average analyst target price is $21.33.
