Latest news with #InModeLtd
San Francisco Chronicle
30-07-2025
- Business
- San Francisco Chronicle
InMode: Q2 Earnings Snapshot
YOKNEAM, Israel (AP) — YOKNEAM, Israel (AP) — InMode Ltd. (INMD) on Wednesday reported earnings of $26.7 million in its second quarter. On a per-share basis, the Yokneam, Israel-based company said it had net income of 42 cents. Earnings, adjusted for stock option expense, came to 47 cents per share. The maker of cosmetic surgery devices posted revenue of $95.6 million in the period. InMode expects full-year earnings in the range of $1.55 to $1.59 per share, with revenue in the range of $365 million to $375 million. _____
Yahoo
16-07-2025
- Business
- Yahoo
Canaccord Genuity Maintains a Hold Rating on InMode Ltd. (INMD)
InMode Ltd. (NASDAQ:INMD) is one of the best undervalued medical device stocks to buy now. In a report released on July 10, Caitlin Cronin from Canaccord Genuity maintained a Hold rating on InMode Ltd. (NASDAQ:INMD) and set a price target of $15.00. A medical professional wearing gloves and a protective mask performing a minimally invasive aesthetic medical procedures on a patient. InMode Ltd. (NASDAQ:INMD) announced in its fiscal Q1 2025 results that it decided to revise its full-year guidance due to continuous uncertainty regarding the US economic outlook and persistent market weakness. Based on the preliminary results, InMode Ltd. (NASDAQ:INMD) expects non-GAAP gross margin for fiscal Q2 2025 to be in the 79% to 80% range, and revenue to be in the range of $95.4 million to $95.5 million. The company expects full-year revenue for 2025 to be in the range of $365 million to $375 million, compared to prior guidance of $395 million to $405 million. InMode Ltd. (NASDAQ:INMD) develops, designs, manufactures, and markets minimally invasive aesthetic medical products used for a number of procedures, such as wrinkle reduction, permanent hair reduction, facial skin rejuvenation, cellulite treatment, pigmented lesions, and more. While we acknowledge the potential of INMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
Positive earnings growth hasn't been enough to get InMode (NASDAQ:INMD) shareholders a favorable return over the last three years
For many investors, the main point of stock picking is to generate higher returns than the overall market. But if you try your hand at stock picking, you risk returning less than the market. Unfortunately, that's been the case for longer term InMode Ltd. (NASDAQ:INMD) shareholders, since the share price is down 38% in the last three years, falling well short of the market return of around 65%. On the other hand the share price has bounced 6.8% over the last week. Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Although the share price is down over three years, InMode actually managed to grow EPS by 11% per year in that time. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past. It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price. The company has kept revenue pretty healthy over the last three years, so we doubt that explains the falling share price. We're not entirely sure why the share price is dropped, but it does seem likely investors have become less optimistic about the business. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. While the broader market gained around 15% in the last year, InMode shareholders lost 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for InMode you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-06-2025
- Business
- Yahoo
InMode Ltd. (NASDAQ:INMD) is largely controlled by institutional shareholders who own 72% of the company
Institutions' substantial holdings in InMode implies that they have significant influence over the company's share price The top 14 shareholders own 50% of the company 15% of InMode is held by insiders AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A look at the shareholders of InMode Ltd. (NASDAQ:INMD) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 72% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. In the chart below, we zoom in on the different ownership groups of InMode. Check out our latest analysis for InMode Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that InMode does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see InMode's historic earnings and revenue below, but keep in mind there's always more to the story. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. InMode is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 8.9% of shares outstanding. With 5.5% and 4.9% of the shares outstanding respectively, Moshe Mizrahy and Michael Kreindel are the second and third largest shareholders. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Executive Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in the company. A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in InMode Ltd.. Insiders own US$129m worth of shares in the US$843m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with InMode , and understanding them should be part of your investment process. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Is There An Opportunity With InMode Ltd.'s (NASDAQ:INMD) 35% Undervaluation?
Using the 2 Stage Free Cash Flow to Equity, InMode fair value estimate is US$21.85 InMode's US$14.23 share price signals that it might be 35% undervalued The US$17.25 analyst price target for INMD is 21% less than our estimate of fair value Does the May share price for InMode Ltd. (NASDAQ:INMD) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Our free stock report includes 2 warning signs investors should be aware of before investing in InMode. Read for free now. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$109.8m US$103.2m US$99.8m US$98.4m US$98.2m US$99.0m US$100.4m US$102.3m US$104.6m US$107.1m Growth Rate Estimate Source Est @ -9.83% Est @ -6.00% Est @ -3.32% Est @ -1.44% Est @ -0.13% Est @ 0.79% Est @ 1.44% Est @ 1.89% Est @ 2.20% Est @ 2.42% Present Value ($, Millions) Discounted @ 9.2% US$101 US$86.6 US$76.6 US$69.2 US$63.3 US$58.4 US$54.2 US$50.6 US$47.4 US$44.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$651m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 9.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$107m× (1 + 2.9%) ÷ (9.2%– 2.9%) = US$1.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$1.8b÷ ( 1 + 9.2%)10= US$730m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$1.4b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$14.2, the company appears quite undervalued at a 35% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at InMode as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.2%, which is based on a levered beta of 0.970. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for InMode Strength Currently debt free. Weakness Earnings declined over the past year. Opportunity Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to decline for the next 3 years. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For InMode, we've compiled three relevant items you should further examine: Risks: Every company has them, and we've spotted 2 warning signs for InMode you should know about. Future Earnings: How does INMD's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
