InMode (INMD) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 855.95K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.27
• Revenue Growth: -3.62%
• EPS Growth: 40.68%
• Country: US
• Employees: 599
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.47
• Shares Outstanding: 69,558,670
• 10 Day Avg. Volume: 663,759
• 30 Day Avg. Volume: 855,949
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: $17.50
• Price Target Upside: 16.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $17.50 ▲(16.28% Upside)

InMode's strong financial performance and undervaluation are key strengths, supported by positive technical indicators. However, reduced guidance and challenges in the North American market, along with increased operating expenses, present risks that temper the overall score.

Positive Factors

Strong Financial Health

InMode's robust balance sheet with a low debt-to-equity ratio and high return on equity ensures financial stability, supporting long-term growth and resilience against economic fluctuations.

International Sales Growth

Strong international sales growth, particularly in Europe, enhances InMode's global market presence and diversifies revenue streams, mitigating risks from regional economic downturns.

Product Innovation

Continued product innovation, such as new wellness platforms, positions InMode to capture emerging market opportunities and meet evolving customer needs, driving future growth.

Negative Factors

Reduced Revenue Guidance

Lowered revenue guidance reflects challenges in sustaining growth, particularly in North America, potentially impacting investor confidence and long-term revenue expectations.

Challenging North American Market

Economic pressures in North America, leading to reduced spending on aesthetic treatments, could limit InMode's growth potential in a key market, affecting overall performance.

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, necessitating cost management strategies to maintain financial health and competitive positioning.

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 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 showcases strong profitability with high margins and a robust balance sheet, featuring low leverage and efficient operations despite recent revenue growth slowdown.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	401.56M	394.82M	492.05M	454.27M	357.56M	206.11M
Gross Profit	321.18M	317.07M	411.34M	380.79M	303.97M	175.26M
EBITDA	123.44M	113.26M	196.28M	198.53M	167.99M	73.26M
Net Income	178.70M	181.28M	197.92M	161.52M	164.97M	75.03M
Balance Sheet
Total Assets	708.35M	785.67M	863.29M	644.41M	478.54M	295.76M
Cash, Cash Equivalents and Short-Term Investments	510.68M	596.47M	741.61M	547.38M	415.91M	260.53M
Total Debt	6.10M	7.82M	9.02M	4.96M	3.31M	358.00K
Total Liabilities	79.91M	81.85M	75.91M	89.79M	62.74M	40.29M
Stockholders Equity	628.44M	703.81M	787.37M	554.62M	415.80M	255.47M
Cash Flow
Free Cash Flow	104.17M	132.00M	176.12M	180.00M	173.95M	78.76M
Operating Cash Flow	104.79M	132.66M	176.83M	181.58M	174.88M	79.22M
Investing Cash Flow	339.72M	162.21M	-136.06M	-109.47M	-160.11M	-43.30M
Financing Cash Flow	-321.47M	-282.77M	5.50M	-41.09M	-15.02M	-12.44M

InMode Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.05
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 15.05 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 14.67, and below the 200-day MA of 15.76, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INMD.

InMode Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INMD	79 Outperform	$1.05B	6.10	25.91%	―	-3.62%	40.68%
AXGN	69 Neutral	$789.58M	―	-4.48%	―	17.17%	72.68%
OFIX	54 Neutral	$560.82M	―	-24.63%	―	4.84%	0.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BVS	51 Neutral	$549.82M	―	-0.10%	―	5.08%	99.38%
ESTA	50 Neutral	$1.17B	―	-261.18%	―	17.22%	1.65%
SSII	42 Neutral	$1.32B	―	-39.11%	―	135.60%	66.47%

InMode Corporate Events

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.

InMode Reports Strong Q2 2025 Financial Results Amid Challenges

On July 30, 2025, InMode Ltd. announced its financial results for the second quarter of 2025, reporting revenues of $95.6 million, an increase from $86.4 million in the same quarter of 2024. Despite facing macroeconomic challenges and cautious consumer behavior, the company maintained an 80% gross margin and achieved a net income of $26.7 million. InMode’s international sales, particularly in Europe, showed strong performance, offsetting some domestic challenges. The company is also involved in a securities class action lawsuit filed in February 2024, which remains pending. While the ongoing geopolitical situation in Israel has not materially affected operations, the company continues to monitor developments closely.