Value
8.2/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.8 |
| P/S | 8.9 |
| EV/EBITDA | 9.4 |
| Fwd P/E | 9.3 |
| PEG | 8.6 |
| Analyst target | 5.0 |
- ▸Forward P/E: 9.7x
- ▸PEG: 0.73
- ▸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
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictHOLD
Overall score5.5/10
ConfidenceMEDIUM
MacroRISK_OFF
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. | ↓Deteriorating |
| 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. | ↑Improving |
| 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. | ↓Deteriorating |
| 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. | Tripped↓Deteriorating |
| 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.
↓DeterioratingCatalyst 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.
↑ImprovingTargets
- 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%.
↓DeterioratingEarnings
- 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.
Tripped↓DeterioratingMomentum 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
1.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.0 |
| MACD | 2.7 |
| OBV | 1.0 |
| MA position | 1.5 |
| Volume | 0.0 |
- ▸Capitulation risk (RSI 19, below 200MA)
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope flat
Sentiment
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 7.8 |
| erm sentiment | 0.0 |
- ▸Analyst upside: 21%
- ▸Estimates falling as sentiment proxy (-33.3%)
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 | 8.7 |
| quality rank | 8.5 |
| growth rank | 5.0 |
- ▸Best in class
- ▸Attractive P/E vs peers
- ▸Best-in-class margins
Technical
8.4/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 10.0 |
| support resistance | 9.3 |
| 52w position | 6.0 |
Risk (lower is worse)
5.4/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 7.8 |
| days to cover | 5.9 |
| volatility | 9.1 |
| put call | 0.0 |
| implied vol | 1.6 |
| beta | 3.2 |
| debt equity | 10.0 |
- ▸Elevated put/call: 3.73
- ▸High IV: 71%
Catalyst
4.0/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 1.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 3.4 |
- ▸Estimates down -33.3% (30d)
- ▸Strong earnings: 3B/1M
- ▸Earnings in 12 days
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (5)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- MOMENTUM:1.6<4.5
- ASYMMETRY:0.5<1.5@spot
Warning (1)
- EARNINGS_PROXIMITY:12d<=14d (soft)
Reward-to-Risk
0.52
Upside
+2.6%
Downside
5.0%
Sizing output
AVOID
Setup— — No clear chart pattern; technical signals are mixed
EdgeCatalyst-Driven — Earnings in 12d with 3/4 beat streak
SuitabilityAggressive — Beta 2.03>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: Technical at 8.4; weakest: Momentum at 1.6. No conviction either direction.
The strongest dimensions are Technical at 8.4, Value at 8.2, and Peer rank at 8.0; the weakest are Momentum at 1.6, Growth at 3.6, and Catalyst at 4.0. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 0.52 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 TrendTripped
Trip ifStock price falls below the $13.63 stop level from the current $13.97.