InMode Ltd. Ordinary Shares (INMD)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. InMode designs minimally invasive aesthetic medical devices using proprietary radiofrequency technology. The latest reported quarter, fiscal Q2 2026, showed revenue of $95.6 million and net income of $17.1 million, a 17.85% net margin. That is a real business, not a story. But the trend is not encouraging: the provided figures show revenue growth of about -0.01% and profit growth of -36.19%. A company whose profits fall that much while sales stall rarely has a wide moat. The balance sheet is a strength: debt-to-equity is 0.01, Altman Z-score is 7.09, and trailing free cash flow is $82.5 million, a 9.1% FCF yield. FairStock's return measures are only moderate: ROE 12.33%, ROCE 6.17%. At the close on 2026-10-13, price was $14.31. FairStock calculations show P/E 11.82, P/B 1.34, EV/EBITDA 7.34, and Graham Number $17.25, giving a 17.07% margin of safety. Piotroski is 6/9. This looks like a modestly cheap, financially safe company, but not a bargain if earnings keep shrinking. The Lynch category is none because only 0 years of filed results are available; I would want more evidence of durable demand and normalized margins. Beta 1.86 means the market has treated it as volatile. I would watch whether revenue and profit growth return before calling the valuation a true margin of safety.

In plain English: InMode makes medical devices for cosmetic procedures such as body contouring and skin tightening. The business still earns money and carries almost no debt, but sales have been flat and profit has fallen sharply. At the recent price, the shares look modestly cheap compared with the company's profits and assets, though the weak growth is a real caution.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer