InMode Ltd (INMD, Financial) has recently garnered attention from investors and financial analysts due to its robust financial position. With shares currently priced at $27.25, InMode Ltd has experienced a daily loss of 5.1%, contrasted against a three-month change of -28.62%. A comprehensive analysis, underscored by the GF Score, indicates that InMode Ltd is primed for significant growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. Stocks with a higher GF Score generally yield higher returns than those with a lower GF Score. Therefore, when selecting stocks, investors should prioritize companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here are the key components of InMode Ltd's GF Score:
- Financial strength rank: 8/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 10/10
Each of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in growth and momentum, and solid ranks in financial strength, profitability, and GF value, GuruFocus assigned InMode Ltd the GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding InMode Ltd's Business
InMode Ltd, with a market cap of $2.27 billion and sales of $496.96 million, provides minimally and non-invasive surgical aesthetic and medical treatment solutions in the United States. Its product portfolio addresses three energy-based treatment categories: face & body contouring, medical aesthetics, and women's health. InMode has developed products for plastic surgery, dermatology, gynecology, and ophthalmology. Its product platforms include BodyTite, Optimas, Votiva, Contoura, Triton, EmbraceRF, EvolveX, Evoke, EmpowerRF, and Morpheus8. The majority of its revenue comes from the United States. The company's operating margin stands at 42.59%, indicating a high level of operational efficiency.
Financial Strength Breakdown
According to the Financial Strength rating, InMode Ltd's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With an Altman Z-Score of 23.52, InMode Ltd exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.01, InMode Ltd's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows InMode Ltd's impressive standing among its peers in generating profit. InMode Ltd's Operating Margin has increased (38.54%) over the past five years, as shown by the following data: 2018: 31.44; 2019: 38.13; 2020: 35.34; 2021: 46.84; 2022: 43.55; .
Growth Rank Breakdown
Ranked highly in Growth, InMode Ltd demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 37.3%, which outperforms better than 89.56% of 728 companies in the Medical Devices & Instruments industry. Moreover, InMode Ltd has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 43.5, and the rate over the past five years is 68. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given InMode Ltd's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. This analysis underscores the importance of comprehensive financial evaluation in identifying companies with strong growth potential and robust financial health. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
