The Value Proposition - Inmode Ltd (INMD)
(Note: Madharry reminded me of the company's 2025 stock buy backs and huge cash on hand last week, so I made more buys bringing this to a 1.14% portfolio position; making it into my top 20 position).
This is a 2026 stock w/ a price target of $35-$40/share or +150% 'potential' gain.
I am convinced in this cycle of the market it is important to stay focused on the value proposition including the tangible assets owned (including cash on hand), consistant positive FCF in both good & bad times, reasonable PE and indication that management sees the value by buying back shares.
Inmode Ltd (INMD) is one I have been accumulating for over a year and have been watching the company since 2023 when they peaked at $46/share 7/2023 and now sell at/near $14.50/share. I have sma; buys in 2023 and more in 2024 and 2025. I was early w/ this name but got my avg. cost/share down to $16.50/share.
InMode Ltd. is a provider of medical technologies. It develops, manufactures and markets devices harnessing novel radio-frequency technology. The company serves plastic surgery, gynecology, dermatology, otolaryngology and ophthalmology. InMode Ltd. is based in Yokneam, Israel. Market Cap $947 million; Current PE 8.43x/Foward PE 10.37x; Little to no Debt; Price/BV = 1.45
Cash on Hand/share: $7.34/share;
Company has been buying back shares in 2025 totalling 18% of the outstanding shares.
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Based on InMode Ltd.'s (INMD) financial reports, here is a breakdown of its assets as of the most recently available data:
Cash and Cash Equivalents
- Cash on hand: As of June 30, 2025, InMode had a total cash position of $510.7 million, which includes cash, cash equivalents, marketable securities, and short-term bank deposits.
- Cash per share: To calculate this, we need the number of outstanding shares. As of a recent report, the total shares outstanding were approximately 67.86 million.
- Cash per share = $510,700,000 / 67,860,000 shares
- Cash per share ˜ $7.53
Tangible Assets
- Value: Based on a recent balance sheet analysis, InMode's physical assets were valued at $11.6 million. This is a component of their total assets, which also include cash, inventory, and receivables.
- Value per share: Using the same share count:
- Tangible assets per share = $11,600,000 / 67,860,000 shares
- Tangible assets per share ˜ $0.17
Intangible Assets (specifically patents)
InMode's business model is heavily reliant on its intellectual property, which includes patents. While a specific dollar value for its entire patent portfolio isn't readily available in the same way as cash or physical assets, the company's financial and public statements highlight its significant investment in and defense of this area.
- Strategic importance: InMode has stated that its intellectual property portfolio is a "fundamental component" of its growth strategy. The company is known to be proactive in acquiring and defending its patents, as evidenced by its past acquisition of Viveve Medical's patent portfolio and its litigation against other companies for alleged patent infringement.
- Value protection: The company views its patents as a key asset that protects its proprietary radiofrequency (RF) technology and secures its position in the medical technology market. The value of these intangible assets is reflected in the company's overall market valuation and its ability to generate revenue from its innovative products.
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Based on InMode's public filings and press releases, the company has been actively engaged in share repurchases over the last 18 months, which began in early 2024.
Shares Bought Back
- Year-to-date 2025: As of April 2025, the company completed a share repurchase program, buying back 6.95 million shares for \$127 million. This was the fifth share repurchase program approved by its board in February 2025.
- Fiscal year 2024: InMode repurchased 7.68 million shares during 2024 for a total of \$135 million, with the majority of the buyback occurring in the fourth quarter.
Combining these figures, InMode has bought back a total of 14.63 million shares over the last 18 months.
Percentage of Outstanding Shares
To determine the percentage of shares bought back, we can compare the total shares repurchased to the number of shares outstanding at the beginning of the period.
- Shares repurchased: 14.63 million
- Shares outstanding: As of the end of 2023, before the major buyback programs started, InMode had approximately 80.6 million diluted weighted-average shares outstanding.
Calculating the percentage:
(14.63 million shares/80.6 million shares)×100%=18.15%
The company's own press releases have stated that, together, the share repurchases represent a significant portion of the company's total shares.
A February 2025 press release noted that the 2024 buybacks represented "approximately 19% of our share capital." This is consistent with the numbers above, especially when considering the timing of the buybacks within the year.
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INMD has been FCF Positive for the last 10 Years. Generating positive Net Income & EBITDA over the same period.
Here is a breakdown of the company's annual revenue (in millions of US dollars) from 2019 to 2024:
- 2024: \$395
- 2023: \$492
- 2022: \$454
- 2021: \$358
- 2020: \$206
- 2019: \$156
Calculating the sales growth year-over-year:
- 2024 vs. 2023: \$395M / \$492M ˜ -19.7%
- 2023 vs. 2022: \$492M / \$454M ˜ +8.4%
- 2022 vs. 2021: \$454M / \$358M ˜ +26.8%
- 2021 vs. 2020: \$358M / \$206M ˜ +73.8%
- 2020 vs. 2019: \$206M / \$156M ˜ +32.1%
Over the entire five-year period from 2019 to 2024, the company's revenue grew from \$156 million to \$395 million. This represents a substantial increase, but the growth rate has been decelerating.
2025 Guidance: Due to the persistent market weakness, InMode has lowered its full-year 2025 revenue guidance to a range of \$365 million to \$375 million, a decrease from its previous guidance of \$395 million to \$405 million. This indicates that management expects a continued period of slower growth for the remainder of the year.
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Managment is working on a 5 year growth plan, using their cash on hand to develop & expand their products specifically into new International Markets (Thailand & Argentina). They will be selling 'direct' to customers and also have a solid revenue stream generated from single use consumables.
Expected Growth and Projected Revenue for 2026
- Projected Revenue: The current analyst consensus for InMode's revenue in 2026 is approximately \$373 million.
- Expected Growth: This estimate reflects a return to growth following the projected decline in 2025. This would represent a modest year-over-year increase of around 2% to 3% from the company's full-year 2025 guidance.
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Could INMB be an aqusition target?
Johnson & Johnson MedTech Division and/or AbbVie (Allergan Aesthetics) Div. I own BITH of these companies w/ JNJ a 1.75% portfolio position & ABBV a 1 % portfolio position.
What would INMD be valued at ?
Valuation Estimate & Projected Price per Share
Valuations in the medical device and aesthetics industry often command a premium due to high profitability and intellectual property. We can use common industry metrics to estimate a potential acquisition price.
- Enterprise Value / EBITDA (EV/EBITDA): The average EV/EBITDA for the medical device industry is typically between 15x and 20x. For a high-margin company with a unique portfolio like InMode, a premium valuation is likely.
- Projected 2026 EBITDA: The analyst consensus is approximately $130 million.
- Net Cash Position: ~$500 million (Cash & Equivalents of $510.7M - Debt of $6.1M).
- Shares Outstanding: ~69.56 million.
Using the EV/EBITDA metric, we can estimate a potential acquisition range:
- Low-end estimate (15x EBITDA):
- EV = 15 x $130M = $1,950M
- Equity Value = $1,950M + $500M (Net Cash) = $2,450M
- Price per share = $2,450M / 69.56M shares ˜ $35.22
- High-end estimate (20x EBITDA):
- EV = 20 x $130M = $2,600M
- Equity Value = $2,600M + $500M (Net Cash) = $3,100M
- Price per share = $3,100M / 69.56M shares ˜ $44.57
A potential acquisition price for InMode would likely fall within the range of $35 to $45 per share. So you may/could see INMD as a 'bolt-on' aqusition especially w/ their consistent 80% margins.
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