InMode's Shares Are Too Cheap To Ignore: The Bottom May Be In
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Robert J. Lake777 FollowersFollow5ShareSavePlay(34min)CommentsSummaryInMode Ltd. remains a global leader in minimally invasive aesthetic medical devices, trading at a deep discount with a net cash position covering 58% of market cap.Despite a sharp 85% drawdown since 2021, INMD's robust balance sheet, strong FCF generation, and signs of improving fundamentals support a reiterated strong buy rating.Operational challenges—declining margins, inventory build, and sales execution—are offset by aggressive buybacks, high FCF yield, and significant upside if management improves capital allocation.Modest improvements in sales culture and capital deployment, combined with macro recovery, could unlock substantial shareholder value and catalyze a re-rating. ArthurHidden/iStock via Getty Images Company Background InMode Ltd. (INMD) was founded in 2008 and is based in Israel. It is a global leader in non-/minimally invasive aesthetic medical products, which are based on their proprietary radiofrequency (RF) assisted lipolysis and deep subdermalThis article was written byRobert J. Lake777 FollowersFollowI have been investing in the stock market since I was 17 years old, and over the 25+ years since I have learned the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good times and bad brings the greatest rewards. I believe the key to creating wealth is the slow accumulation of high quality assets, and the key to enjoying the process of investing is to mix this steady approach with some high risk/high reward opportunities, underappreciated turnaround plays, and transformative technologies. I invest with integrity, only putting my money into companies and industries that aim to make the world a better place.I would consider myself an amateur investor, entirely self-taught with no formal education in investing or business, but smart at figuring out who is worth listening to. I read widely and embrace the notion that my own growth comes from learning from others. In my other life, I have been teaching at the college/university level for over 20 years. I have a PhD from Brunel University and am an accomplished academic writer and editor.Analyst’s Disclosure:I/we have a beneficial long position in the shares of INMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You