INMDInMode Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is INMD?
InMode Ltd. earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Medical Devices median 2.1% · fiscal year to FY2025
- Cash conversion
- 1.17×
Cash conversion · 1.49× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −19%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 35% |
| FY2021 | 47% |
| FY2022 | 44% |
| FY2023 | 40% |
| FY2024 | 28% |
| FY2025 | 23% |
Details›
- Gross marginfiscal year to FY2025
- 79%
- Operating marginfiscal year to FY2025
- 23%
- Net marginfiscal year to FY2025
- 25%
- Free cash flow margin
- 23%
- R&D as % of revenue
- 3.6%
- Revenue, trailing twelve months
- $370M
- Free cash flow, trailing twelve months
- $84M
- Net income, trailing twelve months
- $94M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Devices
Ranks #2 of 51 by RyuScore