INMD

Inmode Ltd

Healthcare


Presented:08/13/2020
Price:$16.00
Cap:$1.14B
Current Price:$16.65
Cap:$1.41B

Presented

Date08/13/2020
Price$16.00
Market Cap$1.14B
Ent Value$0.98B
P/E Ratio20.73x
Book Value$5.76
Div Yield0%
Shares O/S71.22M
Ave Daily Vol1,477,712
Short Int16.30%

Current

Price$16.65
Market Cap$1.41B
InMode Ltd. designs, develops, manufactures and markets minimally-invasive aesthetic medical products. It also designs, develops, manufactures and markets non-invasive medical aesthetic products that target a 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. The company was founded by Moshe Mizrahy and Michael Kreindel on January 2, 2008 and is headquartered in Yokneam, Israel.

Please note, this stock split on 09/30/2021 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $30.99.

Publicly traded companies mentioned herein: Inmode Ltd (INMD)

Highlights

It took the presenter some time to get comfortable with Inmode’s (INMD) investment story; however, a combination of high patient satisfaction and incremental revenue for plastic surgery practices outweighs the risks, in his opinion. The company’s new devices are radio-frequency (RF) based and fit in the minimally invasive category, which has wide appeal for patients seeking aesthetic improvements (e.g., tightening up the waistline or face). It “feels like an undiscovered company” in the early innings of a 10-year product cycle (analogous to Zeltiq in 2012), and the strength of the plastics market has been one of the biggest surprises in healthcare over the past few months (the remainder of 2020 should be strong). If the presenter’s assessment of the setup is accurate, then 18x ‘21 Street EPS estimates and 12.5x EBITDA is too cheap given the potential for a 20% top line CAGR (30% annual EBITDA growth). In his opinion, the stock could double from the low $30s.

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