Value
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.8 |
| P/S | 8.8 |
| EV/EBITDA | 8.9 |
| Fwd P/E | 9.3 |
| PEG | 5.8 |
| Analyst target | 3.0 |
- ▸Forward P/E: 10.0x
- ▸PEG: 1.30
- ▸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.
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VerdictHOLD
Overall score5.6/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Peer-rank notes show the stock trading at an attractive P/E relative to peers with best-in-class margins, reinforcing the value case within its medical device peer group. Peer-rank breakdown | If this relative-value read holds, the peer-relative valuation discount should persist over the next 12 months. | →Stable |
| CounterA persistent valuation discount to peers can also reflect the market correctly pricing in structurally weaker growth prospects, which the bear case explicitly flags, rather than representing a genuine mispricing. | ||
Quality notes flag an earnings-quality warning with free cash flow at 50% of net income and a failing Rule of 40 score of 17, despite a strong 23% margin profile and an 8-out-of-9 Piotroski F-Score. Quality breakdown | If this earnings-quality concern holds, the FCF-to-net-income ratio should remain around 50% or lower over the next 12 months. | →Stable |
| CounterA 50% FCF/NI ratio combined with strong margins and an 8/9 Piotroski score suggests the earnings-quality warning may be a minor blemish rather than a signal of genuine deterioration. | ||
Risk notes show implied volatility at 85% with the stock trading above its $13 max pain level, indicating the options market is pricing meaningful movement around the upcoming earnings catalyst. Risk breakdown | If this catalyst-driven volatility read is accurate, implied volatility should stay elevated heading into the report. | →Stable |
| CounterElevated implied volatility heading into a binary earnings event is standard and may not compress meaningfully even after the event if guidance introduces fresh uncertainty. | ||
The engine identifies a catalyst edge based on a 3-of-4 earnings beat streak with the next report due in 26 days, positioning the upcoming print as a potential positive catalyst. Edge rationale | If this execution strength holds, the company should continue beating estimates at upcoming reports. | →Stable |
| CounterA beat streak of 3 out of 4 quarters still includes a miss, and medical-device companies facing weak growth per the bear case may struggle to sustain outperformance as comparisons get tougher. | ||
The engine's asymmetry gate failed at -1.65, the weakest reading among failed gates, reflecting that the analyst price target has already been reached with just 0.6% upside against 4.9% downside. Engine gate (failed) | If this negative asymmetry read holds, the ratio should remain below zero over the next 12 months. | →Stable |
| CounterGiven the 3-of-4 beat streak and upcoming catalyst, analyst targets could be raised quickly following the next report, resolving the negative asymmetry without requiring any price decline. | ||
Peer-rank notes show the stock trading at an attractive P/E relative to peers with best-in-class margins, reinforcing the value case within its medical device peer group.
→StablePeer-rank breakdown
- Expectation
- If this relative-value read holds, the peer-relative valuation discount should persist over the next 12 months.
CounterA persistent valuation discount to peers can also reflect the market correctly pricing in structurally weaker growth prospects, which the bear case explicitly flags, rather than representing a genuine mispricing.
Quality notes flag an earnings-quality warning with free cash flow at 50% of net income and a failing Rule of 40 score of 17, despite a strong 23% margin profile and an 8-out-of-9 Piotroski F-Score.
→StableQuality breakdown
- Expectation
- If this earnings-quality concern holds, the FCF-to-net-income ratio should remain around 50% or lower over the next 12 months.
CounterA 50% FCF/NI ratio combined with strong margins and an 8/9 Piotroski score suggests the earnings-quality warning may be a minor blemish rather than a signal of genuine deterioration.
Risk notes show implied volatility at 85% with the stock trading above its $13 max pain level, indicating the options market is pricing meaningful movement around the upcoming earnings catalyst.
→StableRisk breakdown
- Expectation
- If this catalyst-driven volatility read is accurate, implied volatility should stay elevated heading into the report.
CounterElevated implied volatility heading into a binary earnings event is standard and may not compress meaningfully even after the event if guidance introduces fresh uncertainty.
The engine identifies a catalyst edge based on a 3-of-4 earnings beat streak with the next report due in 26 days, positioning the upcoming print as a potential positive catalyst.
→StableEdge rationale
- Expectation
- If this execution strength holds, the company should continue beating estimates at upcoming reports.
CounterA beat streak of 3 out of 4 quarters still includes a miss, and medical-device companies facing weak growth per the bear case may struggle to sustain outperformance as comparisons get tougher.
The engine's asymmetry gate failed at -1.65, the weakest reading among failed gates, reflecting that the analyst price target has already been reached with just 0.6% upside against 4.9% downside.
→StableEngine gate (failed)
- Expectation
- If this negative asymmetry read holds, the ratio should remain below zero over the next 12 months.
CounterGiven the 3-of-4 beat streak and upcoming catalyst, analyst targets could be raised quickly following the next report, resolving the negative asymmetry without requiring any price decline.
TrendMatrix Research · core thesis
Engine thesis — one sentence
InMode combines a peer-relative value discount and a strong 3-of-4 earnings beat streak heading into a near-term catalyst with a negative asymmetry setup at an already-reached price target and an earnings-quality warning.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 4.5 |
| ROA | 4.6 |
| Gross margin | 10.0 |
| Op margin | 4.9 |
| Net margin | 10.0 |
| Current ratio | 5.0 |
| FCF quality | 4.0 |
| Moat | 7.8 |
| Rule of 40 | 3.0 |
| Piotroski F | 8.9 |
- ▸Strong margins: 23%
- ▸Earnings quality warning: 50% FCF/NI
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
Growth
3.6/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 3.8 |
| EPS growth | 3.5 |
Momentum
4.4/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 7.7 |
| OBV | 1.0 |
| MA position | 8.0 |
| Volume | 0.4 |
- ▸Volume distribution (falling OBV)
- ▸Above 200-MA but MA slope flat
Sentiment
5.0/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 4.9 |
| erm sentiment | 5.0 |
Insider
5.0/10data confidence 50%Peer rank
7.4/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 8.0 |
| quality rank | 8.7 |
| growth rank | 2.9 |
- ▸Attractive P/E vs peers
- ▸Best-in-class margins
Technical
4.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 3.4 |
| support resistance | 3.7 |
| 52w position | 7.3 |
Risk (lower is worse)
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 6.8 |
| days to cover | 6.7 |
| volatility | 6.2 |
| put call | 10.0 |
| implied vol | 3.9 |
| max pain risk | 3.0 |
| beta | 3.6 |
| debt equity | 10.0 |
- ▸Above max pain $10
Catalyst
5.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 4.5 |
- ▸Strong earnings: 3B/1M
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (6)
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:22d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (3)
- MOMENTUM:4.4<4.5
- ASYMMETRY:-1.8=NEGATIVE
- DEATH_CROSS:HARD_BLOCK
Warning (0)
none
Reward-to-Risk
-1.82
Upside
-15.7%
Downside
8.6%
Sizing output
AVOID
SetupMomentum Cont — Trend continuation, RSI 67, MACD bullish
EdgeCatalyst-Driven — Earnings in 22d with 3/4 beat streak
SuitabilityAggressive — Beta 1.91>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 7.4; weakest: Growth at 3.6. No conviction either direction.
The strongest dimensions are Peer rank at 7.4, Value at 7.2, and Quality at 6.3; the weakest are Growth at 3.6, Momentum at 4.4, and Technical at 4.8. The V9 engine flagged 3 failed gates, producing an asymmetric reward-to-risk of -1.82 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Earnings Beat Streak Catalyst
Trip ifEPS surprise falls below 0% at the July 30, 2026 report.
- P2Peer Relative Value Strength
Trip ifForward P/E rises above 13x, closing the current discount to peers.
- P3Earnings Quality Warning
Trip ifFCF-to-net-income ratio rises above 70% for 2 consecutive quarters.
- P4Negative Asymmetry Reached Target
Trip ifAsymmetry ratio rises above 1.0 for 2 consecutive quarters.
- P5Elevated Options Pricing Above Max Pain
Trip ifImplied volatility falls below 50% within 4 weeks after the July 30, 2026 earnings report.