Value
7.9/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.7 |
| P/S | 8.9 |
| EV/EBITDA | 9.2 |
| Fwd P/E | 9.3 |
| PEG | 8.5 |
| Analyst target | 4.0 |
- ▸Forward P/E: 10.0x
- ▸PEG: 0.75
- ▸Attractively valued
INMD · Why this verdict
Why InMode (INMD) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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VerdictHOLD
Overall score5.8/10
ConfidenceMEDIUM
MacroRISK_OFF
TrendMatrix Research · core thesis
Engine thesis — one sentence
InMode is a profitable, attractively valued medical device maker with best-in-class margins and a 3-of-4 earnings beat streak, but weak growth, falling estimates and a price 1.6% above the analyst target limit near-term upside.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
InMode combines strong 21% margins and an 8/9 Piotroski score with a forward P/E of 10.2x and PEG of 0.76, a cheap valuation for a high-margin business. Quality breakdown | Margins stay near 21% and forward P/E remains near 10x as earnings are delivered. | →Stable |
| CounterEarnings quality is flagged, with free cash flow only 61% of net income, and the Rule of 40 score of 13 fails. | ||
Growth is weak: quarterly revenue of $95.6M is flat versus $95.6M a year earlier, and earnings estimates fell 33.3% over 30 days. Catalyst breakdown | Quarterly revenue grows above $100M and estimate revisions turn positive. | ↑Improving |
| CounterWithout growth, a low P/E may be a value trap, and falling estimates suggest further earnings cuts. | ||
At $13.97 the stock is 1.6% above the $13.74 analyst target, with 5.0% downside to the stop, so analysts see no remaining upside. Targets | Analysts raise targets above $13.97 as earnings stabilize. | ↓Deteriorating |
| CounterWith the price above target and estimates falling, target cuts are more likely than raises. | ||
InMode beat estimates in 3 of the last 4 quarters, including $0.35 against a $0.33 estimate in August 2026, though the average surprise is only +1.7%. Earnings | The November 11 report meets or beats the consensus estimate. | ↑Improving |
| CounterThe May 2026 miss of 16% and a long history of misses in 2024 and 2025 show results are inconsistent. | ||
The stock is below its 200-day average with a beta of 2.03, 74% implied volatility and a momentum score of 5.1/10, though on-balance volume is rising. Momentum breakdown | Price reclaims the 200-day moving average while on-balance volume keeps rising. | ↑Improving |
| CounterA beta above 2 magnifies market declines, and the stock is below its long-term trend. | ||
InMode combines strong 21% margins and an 8/9 Piotroski score with a forward P/E of 10.2x and PEG of 0.76, a cheap valuation for a high-margin business.
→StableQuality breakdown
- Expectation
- Margins stay near 21% and forward P/E remains near 10x as earnings are delivered.
CounterEarnings quality is flagged, with free cash flow only 61% of net income, and the Rule of 40 score of 13 fails.
Growth is weak: quarterly revenue of $95.6M is flat versus $95.6M a year earlier, and earnings estimates fell 33.3% over 30 days.
↑ImprovingCatalyst breakdown
- Expectation
- Quarterly revenue grows above $100M and estimate revisions turn positive.
CounterWithout growth, a low P/E may be a value trap, and falling estimates suggest further earnings cuts.
At $13.97 the stock is 1.6% above the $13.74 analyst target, with 5.0% downside to the stop, so analysts see no remaining upside.
↓DeterioratingTargets
- Expectation
- Analysts raise targets above $13.97 as earnings stabilize.
CounterWith the price above target and estimates falling, target cuts are more likely than raises.
InMode beat estimates in 3 of the last 4 quarters, including $0.35 against a $0.33 estimate in August 2026, though the average surprise is only +1.7%.
↑ImprovingEarnings
- Expectation
- The November 11 report meets or beats the consensus estimate.
CounterThe May 2026 miss of 16% and a long history of misses in 2024 and 2025 show results are inconsistent.
The stock is below its 200-day average with a beta of 2.03, 74% implied volatility and a momentum score of 5.1/10, though on-balance volume is rising.
↑ImprovingMomentum breakdown
- Expectation
- Price reclaims the 200-day moving average while on-balance volume keeps rising.
CounterA beta above 2 magnifies market declines, and the stock is below its long-term trend.
Per-dimension breakdown
Quality
6.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 4.1 |
| ROA | 4.1 |
| Gross margin | 10.0 |
| Op margin | 5.1 |
| Net margin | 10.0 |
| Current ratio | 5.0 |
| FCF quality | 4.7 |
| Moat | 6.6 |
| Rule of 40 | 3.0 |
| Piotroski F | 8.9 |
- ▸Strong margins: 21%
- ▸Earnings quality warning: 61% FCF/NI
- ▸Rule of 40: 13 (fail)
- ▸Strong Piotroski F-Score: 8/9
Growth
3.6/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 2.5 |
| EPS growth | 4.7 |
Momentum
3.7/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.5 |
| MACD | 3.6 |
| OBV | 10.0 |
| MA position | 1.5 |
| Volume | 0.0 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope flat
Sentiment
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 7.0 |
| Analyst rating | 5.0 |
| Price target | 7.4 |
- ▸LLM news sentiment: +0.40 (n=1)
Insider
4.8/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 4.5 |
| notable moves | 5.0 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
8.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 8.6 |
| quality rank | 8.5 |
| growth rank | 5.0 |
- ▸Attractive P/E vs peers
- ▸Best-in-class margins
Technical
6.2/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 6.4 |
| support resistance | 5.7 |
| 52w position | 6.4 |
Risk (lower is worse)
5.3/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.8 |
| days to cover | 5.9 |
| volatility | 7.7 |
| put call | 0.0 |
| implied vol | 2.4 |
| beta | 3.5 |
| debt equity | 10.0 |
- ▸Elevated put/call: 2.82
- ▸High IV: 66%
Catalyst
4.7/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 3.5 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 3.4 |
| news activity | 5.0 |
- ▸Strong earnings: 3B/1M
- ▸Earnings in 7 days
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (4)
- INSIDER:OK
- 8K:CLEAN
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (4)
- MOMENTUM:3.7<4.5
- ASYMMETRY:-0.0=NEGATIVE
- DEATH_CROSS:HARD_BLOCK
- EARNINGS_PROXIMITY:7d<=7d
Warning (0)
none
Reward-to-Risk
-0.01
Upside
-0.1%
Downside
5.0%
Sizing output
AVOID
SetupFalling Knife — Death cross, below all MAs, RSI 38, MACD bearish
EdgeInst Constrain — Small cap ($0.8B) below institutional reach
SuitabilityAggressive — Beta 1.96>1.3, MCap $0.8B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: INSIDER:OK. Top dim: Peer rank at 8.0; weakest: Growth at 3.6. No conviction either direction.
The strongest dimensions are Peer rank at 8.0, Value at 7.9, and Sentiment at 6.4; the weakest are Growth at 3.6, Momentum at 3.7, and Catalyst at 4.7. The V9 engine flagged 4 failed gates, producing an asymmetric reward-to-risk of -0.01 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Best In Class Margins Valuation
Trip ifNet margin falls below 15% from the current 21%.
- P2Weak Growth Falling Estimates
Trip ifQuarterly revenue falls below $85M from the latest $95.6M.
- P3Price Above Analyst Target
Trip ifAnalyst target falls below $12.00 from the current $13.74.
- P4Earnings Beat Streak
Trip ifEPS surprise stays below 0% for 2 consecutive quarters.
- P5High Beta Below Long Term Trend
Trip ifStock price falls below the $13.63 stop level from the current $13.97.