InMode Ltd.
InMode Ltd. Fundamental Analysis
InMode Ltd. (INMD) shows moderate financial fundamentals with a PE ratio of 10.21, profit margin of 25.33%, and ROE of 14.52%. The company generates $0.4B in annual revenue with weak year-over-year growth of -19.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INMD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentINMD demonstrates superior asset utilization.
Valuation Score
ExcellentINMD trades at attractive valuation levels.
Growth Score
WeakINMD faces weak or negative growth trends.
Financial Health Score
ExcellentINMD maintains a strong and stable balance sheet.
Profitability Score
ModerateINMD maintains healthy but balanced margins.
Key Financial Metrics
Is INMD Expensive or Cheap?
P/E Ratio
INMD trades at 10.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INMD's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values InMode Ltd. at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.98 times EBITDA. This signals the market has high growth expectations.
How Well Does INMD Make Money?
Net Profit Margin
For every $100 in sales, InMode Ltd. keeps $25.33 as profit after all expenses.
Operating Margin
Core operations generate 23.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.52 in profit for every $100 of shareholder equity.
ROA
InMode Ltd. generates $12.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
InMode Ltd. produces operating cash flow of $90.46M, showing steady but balanced cash generation.
Free Cash Flow
InMode Ltd. generates strong free cash flow of $89.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.41 in free cash annually.
FCF Yield
INMD converts 9.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How INMD Stacks Against Its Sector Peers
| Metric | INMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.21 | 29.43 | Better (Cheaper) |
| ROE | 14.52% | 800.00% | Weak |
| Net Margin | 25.33% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 9.88 | 4.64 | Strong Liquidity |
| ROA | 12.24% | -17936.00% (disorted) | Strong |
INMD outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews InMode Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.14%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
118.55%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
57.22%
Industry Style: Defensive, Growth, Innovation
High Growth