InMode Ltd. Ordinary Shares (INMD)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Generates $39 million in annual free cash flow (4.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 13.5% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 9.5 confirms minimal bankruptcy risk and strong solvency

AI Analysis

InMode Ltd. Ordinary Shares is a micro-cap healthcare company valued at $905 million. The business generates $370 million in annual revenue with a 7.3% net margin and $39 million in free cash flow. From a quality standpoint, InMode shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 9.5 confirms fortress-level solvency. On valuation, the stock is attractively valued at 10.0x earnings, with a modest 23% margin of safety vs Graham Number. Growth dynamics show revenue growing at 6.1% and profit growth of -67.3%. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates InMode's consistent 14% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $39 million in annual free cash flow (4.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer